Credit Unions Weathering the Subprime Crisis, But...

Naturally, I was pleased to read the following article at Marketwatch.com recently, with the headline "On the hunt for credit - Given turmoil at traditional banks, time may be right to try a credit union."

It's always great when credit unions are mentioned in the non-trade press, especially now when banks are taking a beating and credit unions are looking better and better to potential members everywhere. The article rightly points out some benefits of credit unions (such as borrowers can usually find better deals there) and there are some great quotes from CUNA staff.

However, credit union marketers and communications staff take note: I couldn't help noticing the article leads with the following (!) "The Web sites may not look quite as polished and the eligibility requirements may give you pause, but when it comes to low fees and generous rates, credit unions match banks head-to-head."

Ouch! Talk about faint praise. As a web manager, I cringed when I read that. Is that the perception?

What does your credit union website look like? Do you ever survey or ask your young adult members what they think of it?

PS - Coincidentally, Tony Mannor recently posted on ugly credit union websites here at cuhype.com.

What's Your Story? A Lifetime of Credit Card Debt?

I was really irked by an ad I saw in a magazine this week for Citi Card. It's part of Citi Card's larger ad campaign - The "Tell Your Story" series. "It’s a creative platform showing how Citi cards can help users facilitate their life stories,” notes Lisa Caputo, CMO at Citi. Here is a taste:

The print ad I saw went like this:

A 20-something fashion-savvy black woman whose ad is headlined: “I don’t cook. So I made my eat-in kitchen a fabulous walk-in closet.” The photograph shows her in the kitchen, with the cabinets open to showcase her handbags, shoes and sweaters. “My name is Grace and I live in a small apartment in a big city. And since I enjoy a day of shopping far more than, say, cooking, I decided to do a bit of home remodeling. So with my Citi card in hand, I set out to get some closet organizers. I bought a shoe rack for the oven, sweater boxes for the lower cupboards and some 12-inch baskets for handbags up above. I saved room for plates, glasses and silverware. And one large drawer stuffed with take-out menus.” More from the ABA here on the series. More on this ad specifically here.

The tagline is then - "Whatever your story is, your Citi card can help you write it.” Yeah, they are cute too. Here is a TV Spot:

In the ABA piece, Caputo says, "We want people to select the Citi card because, in so doing, we can help them live a piece of their dream.”

What dream is that exactly? It's a credit card. The print ad irked me because it shows this woman with kitchen cabinets overload with...stuff. Non-kitchen stuff at that. The card is basically aiding her addiction to shopping.

Now we all have our own dreams. I know I do. I'd love to be able to read the Sunday New York Times front to back...just once. I also want to be a superhero. And if your dream happens to be shopping for more and more stuff, so be it. But still.

To me, the ad emits an empty and exploitative attempt at the emotions of people who want what they can't afford. "Hey, use this card to live your dreams. All it takes is one swipe."

It's a dangerous game. The number of 18 to 24-year-olds declaring bankruptcy has increased 96% in 10 years. In 2007, a Charles Schwab survey on teens and money reported that only 45% of teens know how to use a credit card, while just 26% understood credit-card interest and fees.

What does your credit union's credit card ads look like? What kind of message are you sending?

At any rate, I think you can look at Citi Cards' ads as what NOT to do.