By Gretchen Wehmhoff
Skagway will see a second financial institution open in downtown this April.
Credit Union 1 (CU1) plans to add a branch in town in response to a letter they received from Skagway officials last January inviting financial companies to explore Skagway as a new branch destination.
Two years ago, CU1 announced it would seek branches in Wasilla and Kotzebue. Then the invitation from then Skagway Borough Manager, Brad Ryan showed up.
“With two other branches opening this year, Skagway wasn’t on our radar for expansion, but the assembly’s request got our attention,” said CU1’s President and CEO, Mark Burgess.
Burgess and chief operating officer, Erika Smith, came to Skagway in April – just before the cruise season got going.
“When we visited the community, we met incredible people who exemplify the Alaskan spirit—innovators, small business owners, and families building their future. It became clear that CU1 could make a real difference here,” said Burgess.
“We were there, seeing everybody getting set up, talking to a bunch of the businesses and [hearing] some of the struggles that are happening down there. Like it’s a couple days sometimes to do a wire transfer. And, you know, there’s only one option in town, so financing things can sometimes be tough,” Burgess said.
He also heard from those who didn’t bank with Wells Fargo, the only banking option in Skagway.
“Someone told us about having to have an account someplace else, and they had to bring a bunch of money on the ferry to go someplace else because they didn’t want to have an account at Wells Fargo. I was like, man, this seems like something that we can just help with,” Burgess said.
According to Burgess, CU1 is the only state-chartered credit union, as opposed to a federal credit union, in Alaska. This allows the credit union, with state approval, to set up branches anywhere in the Alaska. Other credit unions need federal approval to adjust their charter to add a branch.
The new branch will open at 306 B 3rd Ave. The location once housed Quilt Alaska.
The branch will offer regular services such as handling money, accounts and loans. The company plans to hire Skagway locals to work at the credit union. Those employees will be flown to Anchorage for on-the-job training at other branches before the grand opening.
The credit union will be open Monday through Friday with an Interactive Teller Machine (ITM) open on Saturday as well. An ITM differs from an ATM (Automated Teller Machine) in that the customer can elect to interact and converse with a real teller via video.
Burgess says the advantage of being an Alaska credit union is that most decisions can be made here in the state. For instance, Burgess will be talking to his team about possible money exchange, particularly for Canadian currency.
“I know, at the very least, anyone who needs American money would be able to use the ITM to pull cash out from any of their Canadian bank accounts. That would work totally fine,” said Burgess.
Construction crews are headed to Skagway at end of February to get the building ready and create a financial institution in the former quilt shop. They will set up all the necessary security measures for protecting the money. Burgess plans to keep support local.
“We are using the local hardware store to source all of our materials,” he said.
