Two credit unions answered the call for a possible second banking institution in Skagway. Both have plans to visit. KHNS reporter Melinda Munson brings us this report.
Skagway is currently home to one financial institution, Wells Fargo Bank. The Finance Committee began discussing the idea of a second brick and mortar banking option last year.
Finance Chair Jay Burnham spoke about the benefits of a second bank.
“I just think that little bit of opportunity to have a competitor in town would be advantageous and also maybe have another job or two in town,” Burnham said. “Just giving people choices and different options.”
In January, the Skagway Borough Assembly directed its staff to reach out to banking institutions that might be interested in setting up shop in Skagway. Two credit unions responded.
In a letter, Credit Union 1 President Mark Burgess said they are quote: “actively looking into the possibility of opening a branch in Skagway.”
Burgess said they already met with Skagway business owners and residents. He plans a visit to Skagway in April.
CEO Helen Mickel of Tongass Federal Credit Union also wrote to the municipality, asking to meet with city officials. She said that based on the year-round population, and because there is already one bank, if the credit union came, they would begin with a community microsite model. A microsite is started in a location provided by a local sponsor that gives free space. Tongass contributes the equipment and hires staff.
Tongass Federal Credit Union is hosting a financial fair at Skagway School on April 26. The event helps teach students about personal finances. The credit union is asking for volunteers to act as salespeople as students practice buying cars and furniture, and perform other adulting tasks.
Assembly member Orion Hanson supports the idea of the municipality soliciting banking institutions.
“I think Alaska-centric banks understand rural, the rural net aspect of what’s happening here,” Hanson said. And sometimes it can be easier to get loans. To understand what’s happening in rural Alaska, particularly on property.”
Neither credit union was on the agenda for the April 18 assembly meeting.