Normally, you have the break-up talk with another person … not your financial institution.
Last fall however, many consumers, disenchanted and unhappy with increased fees and the service they were receiving at big banks, began to reevaluate their banking relationships. Credit unions across the country were there to welcome them with open arms. As Bank of America and other big banks suffered backlash from the public and the media over new and increased fees, credit unions became a more attractive alternative.
At NMTW Community Credit Union, we saw the unique opportunity that existed. As a state-chartered community credit union with five branches and $500 million plus in assets, we don’t have a branch or ATM on every corner. What we do have, though, is the ability to provide our more than 25,000 members with the financial products and services that they need and want, while maintaining a high level of service.
With Bank of America’s $5 fee debacle, you could almost feel the shift as the financial industry’s playing field began to level. We knew that credit unions were the best kept secret in town, yet the majority of consumers didn’t. Keeping it simple, we ran a “Break Up With Your Bank” campaign – no gimmicks or tricks, no offers of money or electronics for opening an account, and most importantly, no fine print. The message was simple and clear. We didn’t add new products or change our brand promise, we simply delivered on it – higher values, trusted service.
Opportunity Still There
While the media scrutiny of banks has died down significantly in recent months, the opportunity for credit unions to gain market share still exists.
The secret may be out about how great credit unions are, but with that newfound awareness comes newfound expectations. Your members will expect, if not demand, that you stay relevant (i.e. enhanced eServices, more branches, etc.). Relevancy will always be a struggle, as many credit unions have smaller budgets and fewer resources than banks, but it is important to remember that if you can’t provide your members with what they want, they will go to the financial institution down the street that will.
Invest in what will help you achieve your long term-strategic and business goals, whether it be technology to help your operations or IT departments run more efficiently, social media (please believe me that it is not just a trend), or online banking and mobile banking if you haven’t already. These are all examples of ways to stay relevant in an environment that is constantly changing for both financial institutions and consumers.
If there was any one takeaway from the big bank backlash, it seems to be a relatively simply one. Stay true to the philosophy that credit unions was founded on – “people helping people.” Let your potential and existing members know that you’re there to help them with their finances, be it a checking account without fees or a mortgage at a low interest rate. Advertise and market your core products and services because people might not realize that they are eligible to join your credit union or that you offer everything that their bank does, if not more.
Credit unions are an important option for consumers. And after last fall, credit unions are now an option with much more street cred, thanks to the media and the big banks missteps. Use it to your advantage, and when in doubt, ask people to break up with their bank and start a relationship with you.
