This semester, Emporia State became the only state regent university without a bank branch located on campus. The five other state regent universities all have a Commerce Bank branch.

In preparation for the end of Lyon County State Bank’s contract with ESU in late December, the university issued a proposal last summer to area banks to have a branch location on the ESU campus. Marion National Bank outbid LCSB, which had occupied space in the Memorial Union for almost ten years.

“Lyon County State bank had done an excellent job,” said Ray Hauke, vice president of Administration and Fiscal Affairs. “We liked the bank, students liked the bank, it’s just that the offer that was made by MNB was better from a financial perspective.”

LCSB protested MNB’s contract with ESU for what Hauke said were “technical reasons,” possibly with the motive to maintain business.

“We concluded in about August that there really wasn’t time to resolve the dispute and ensure that we would have services for students this semester,” Hauke said. “For that reason we decided it seemed appropriate that both MNB’s offer and LCSB’s offer be declared null and void and was best to let the current contract expire, which it did on Dec. 31.”

However, LCSB will continue to have an ATM in the Union, and any other bank willing to match LCSB’s ATM contract of $500 monthly can add an ATM as well. Memorial Union Director Dave Hendricks said that after renovations, there will be space for four.

While there is a possibility of a bank returning to campus, Hauke said it would not be practical until the east wing renovations in Memorial Union are completed. However, without a bank to fill the space, the area allotted for one, across from the current information desk, will now be renovated as a multipurpose meeting room.

“Really, it makes no sense for (ESU to contract a bank) until about a year from now because there’s no point in having a bank move into the area where LCSB was and then immediately disrupt that and have them move in order to renovate the Union,” Hauke said.

Hauke hopes to survey students before any decisions are made. The results of a student survey will influence the addition of a new bank in the future.

“It depends on how the students of the future bank,” Hauke said. “More and more people bank almost exclusively electronically, they hardly ever go to the bank. On the other end, some people still go to the bank. If you still go to the bank, it would be nice to have one on campus, if you don’t, it doesn’t make a lot of difference.”

Jocelyn Cummings, freshman secondary education math major, said she started banking with LCSB upon moving to campus and has been to their location in the Memorial Union as well as their off campus location.

“I just went with the Lyon County because it was on campus and convenient because I could just stop by the bank on the way to class,” Cummings said. “But I don’t really have a preference if we were to get another bank.”

Resulting from the removal of LCSB, Hendricks said there have been fewer students in the Union.

“We have noticed this semester the lack of traffic in the union due to not having a bank,” Hendricks said. “Our bookstore has experienced some of the same. I personally would love to see some kind of a bank in the union. I think it’s something that students might appreciate.”

But with the bank out of the way, its space has been transformed into a temporary location for the I.D. Office, and the Hornet Express will fill the I.D. Office space so that the east wing renovation can begin. Ultimately, the area that was once the bank will be a lounge.

“We’re just trying to get all of that kind of stuff out of that center that we call Main Street and really turn that into the student life part of the building,” Hendricks said. “There will be lounge furniture and probably tables and chairs to support our food venues.”

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An ESU student stops by the Lyon County State Bank branch in the Memorial Union last week. The branch will no longer be part of the union after this semester. Jonathan Elliott/The Bulletin.

With the possibility that there may not be a bank in the Memorial Union, the administration has found an alternative to a physical banking branch.

“There would not be sufficient time to issue a new Request For Proposal, a new banking agreement and properly service students,” said Raymond Hauke, vice president of administration and fiscal affairs. “We have the opportunity for students to decide which bank they would like their money to go to.”

Emporia State has signed a contract with Touch Net, a payment card industry data security standard compliant company. This company provides a secure environment in which the university can process credit card transactions, said Mary Mingenback, ESU controller.

“They have additional capabilities that allow us to make deposits to any bank in the country,” said Michael Lane, ESU president, in an interview last week. “That’s one of the primary things we used Lyon County State Bank for.”

The program is supposed to be operational by January so that students have the opportunity to have their excess financial aid for next semester deposited in any bank they choose. The old software that the university used did not allow them to deposit money into more than one account, Hauke said.

“Hopefully, starting in January and if not January certainly August, we’ll be able to give students a choice on whether they’d rather receive a check or have it deposited in the bank of your choice,” Lane said. “If that’s not up and running by December, we will do everything by check. It needs to be up and running by mid-October for us to be comfortable.”

University officials said they feel that there would not be enough time to set up new bids for the banking contract.

However, Lane wants to extend the decision to the students as to whether or not a bank in the MU would be the best option.

“One of the things that we want to find out from students is ‘Do you really care if there is a bank on campus?’,” Lane said. “If getting your check faster means getting that deposited (into the bank on campus) made that a no-brainer yes in the past, if I can deposit it in (your home bank) do you care if there is a bank on campus?”

Even if students decide that a bank on campus is desirable, there will not be a contract limiting the options.

“We won’t bid for a contract because we don’t have the need for an exclusive contract anymore,” Lane said. “What we are looking at is the possibility of putting off some short term bids for ATMs. That will not be exclusive, there could be multiple ATMs.”

ATMs will be contracted in the same way as other banking services.

“In all likelihood, what we will do is have more than one ATM,” Hauke said. “We will look at their willingness to pay the Memorial Union a rental fee and what they will charge for transactions fees.”

No matter what is decided, Lane said the ultimate goal is to do what is best for the students.

“If students want a bank, we will lease the space to a bank,” Lane said. “There may never be another bank. If students decide that a bank isn’t the best use for that space then I have no idea what we’ll do with it.”

Ashley Peaches/The Bulletin

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