Andreas Jeninga/The Hoya Meg Johnson, a Chevy Chase employee, tries to recruit student consumers, while two of her fellow employees educate a student about Chevy Chase’s services. The new branch opened in the Leavey Center next to Bulldog Alley.

Georgetown University ‘s athletic department has entered into a 10-year sponsorship agreement with Chevy Chase Bank, ending the virtual monopoly on financial services that the student-run Georgetown University Alumni and Student Federal Credit Union had enjoyed.

The students who work for GUASFCU, however, said they feel up to the challenge of competing against another financial entity located right in the Leavey Center.

“I think it’s inevitable that they’ll take some of our market share away, but we hope this will only make our business stronger by allowing us to focus on providing the students with a higher level of service,” Aaron Shumaker (MSB ’05), the Credit Union’s CEO, said.

The sponsorship is the result of a number of conversations with administrators over several months at the end of last semester. Chevy Chase Bank opened last week in the arcade next to Bulldog Alley.

“The partnership will expand financial service opportunities for the campus community and at the same time help support our athletic programs,” university spokeswoman Julie Bataille said.

The final decision was made in late June, at which point the university informed GUASFCU as well as other relevant student corporations.

“Negotiations on this agreement were confidential until the agreement was finalized,” Todd Olson, vice president for student affairs, said. “We are committed to continuing to support GUASFCU as a unique student business, and understand that GUASFCU provides educational as well as financial opportunities to our students.”

But GUASFCU’s board is disappointed that they were not consulted in the decision-making process of bringing Chevy Chase to campus. Shumaker cites the fact that the Credit Union is not only a financial service for students but it is also a valuable educational experience.

“What GUASFCU offers that no other commercial bank in the world ever can, is a highly integrated hands-on internship experience,” Shumaker said. “Running a nationally recognized $12 million business at age 21 is pure business education and Georgetown ‘s educational reputation shouldn’t be treated like a commodity.”

Move-in weekend is often the most critical time of the year for the Credit Union to open new bank accounts for arriving freshman, and the Credit Union is preparing to compete against Chevy Chase .

“We’re [GUASFCU’S Board of Directors] meeting this week to determine additional steps we need to take to compete with Chevy Chase ,” Shumaker said. “We’re going to be focusing on improving our customer service to the extent we can.”

Students have frequently criticized the Credit Union for a lack of functioning ATMs, and Shumaker said that the Credit Union has considered joining a credit union ATM network that would provide members with free access to about 4,000 ATMs in over 40 states.

The new Chevy Chase will offer internships to Georgetown students, as is expressed in their sponsorship deal.

Bataille said that it is fairly common for universities to have more than one financial institution on their campus.

“It gives students the opportunity to look at their options,” she said.

Anthony Portelli (SFS ’06) agreed. “I think competition is healthy,” he said. “I’m glad that they’re there.”

Chevy Chase said that with both GUASFCU and their branch on campus, all needs of the campus community will be filled.

“We believe that the GUASFCU and the bank can both play a role in meeting the needs of the Georgetown University population,” Carol Richardson, area manager for the Chevy Chase branch, said. “Just as the Hoya Court offers different dining options to its patrons, the Chevy Chase Bank branch in the Leavey Center will provide another option for banking services to university students, faculty and staff.”

Margie Bryant, associate vice president of auxiliary services, serves as the on-campus liaison to Chevy Chase . She said that one of the reasons the university felt it appropriate to bring a new financial institution to campus was the fact that Riggs Bank was on campus through the early 1990s. According to Shumaker, GUASFCU did not suffer any loss of business during this time.

As for the future, Bryant said she is optimistic for both banks.

“I hope students will embrace the credit union as well as the bank. We want to work hard to give equal promotion opportunities to both,” she said.