Credit unions across New England are banding together to educate consumers about the benefits of banking with a not-for-profit institution. Recent moves by the Credit Union League of Connecticut and the Cooperative Credit Union Association aim to increase awareness of credit unions within the general public.
The Credit Union League of Connecticut kicked off its campaign in August with a new website, www.ctcreditunions.org, and a companion series of advertisements.
“With the tagline ‘There’s one for you,’ credit unions want to let Connecticut residents know that no matter what their situation, banking preference or where they live or work, there is a Connecticut credit union for them,” according to the association’s press release.
“When someone is ready to make the next financial decision in their life, it is important they are aware of all the options available to them,” Jill Nowacki, president and CEO of the Credit Union League of Connecticut, said in a statement. “In the cooperative spirit of working together, credit unions in Connecticut have created a great resource.”
The Cooperative Credit Union Association, comprised of the Massachusetts, New Hampshire and Rhode Island credit union leagues, last week launched its own campaign to educate consumers about the “value proposition” of credit unions.
Advertising initiatives will drive traffic to BetterValuesBetterBanking.com, the campaign’s centerpiece website. The site offers information about credit unions – a brief history of their formation and how they operate, as well as 15 reasons to join – and hosts a search function for nearby credit unions.
It’s hard out there for local lenders; credit unions and community banks alike struggle to adapt to a changing consumer environment while keeping up with regulatory requirements. The internal industry debate about the relative merits of banks versus credit unions has not yet spilled to the general public, likely because the associations are correct – consumers aren’t quite sure what a credit union is, let alone why it may be a better solution for their financial needs.
The wording of the CCUA’s slogan “Better Banking. Better Values.” is not in any way accidental, according to President and CEO Paul Gentile. “Banking” immediately describes what a credit union does, he said, and “values” speaks to both the values credit unions strive to uphold and the value proposition they offer to consumers.
“More and more consumers are looking for value in their financial life, and credit unions offer a great value for consumers,” he said. “Too many people don’t understand what a credit union is, what it does and how it can help them. [The campaign’s] goal is to demystify what credit unions are and show people the value they offer.”
It may be an uphill battle – consumers will first need to be introduced to credit unions as a concept, then convinced of their value proposition – but credit unions can no longer rest on recruitment within their traditional memberships. These campaigns may make the difference in an increasingly tight and competitive local lending market.
