Credit Union "Bucks the Norm" and Gets it Right

The "young adult conversation" in credit union world has evolved in the past three years I've been Manager of Young Adult Programs here at CUNA. The conversation is no longer about what the issue is and why there is a problem. It is now focused on what can CUs do, and how do they do it.

With that said, I'd like to share how one credit union is addressing the issue of better attracting and serving young adults. Tinker Federal Credit Union launched phase 1 of a financial education site for my generation called Buck the Norm. Check out the site, and this video for more details and to draw your own conclusions...



For this post, I want to focus the discussion on where the folks at Tinker have gotten it "right." IMHO there are three major areas:

• Content of site is RELEVANT, connects, and isn't "jive." The site is new, so there isn't a giant amount of content. But what is on the site is written in a way that speaks with the user, instead of talking to the user, and isn't trying too hard to be "cool." The articles and blog posts are written in a style that is informative, to the point, and relaxed. The video is edgy, well produced, and makes a strong point. All of this is important because communicating in this manner connects with the audience and doesn't come across as thinly veiled attempt to hook my generation into buying something. More on that later...
  

• Good use of Web 2.0. Tinker provides an RSS feed and uses a button from addthis that enables social bookmarking, where users can share information with friends and promotes organic/viral promotion of their message. This kind of word of mouth marketing is a powerful way to share your message and has a genuine feel to those who receive the message, because it came from a person and not an institution or company. This is important because TFCU is attempting to take advantage of existing structures popular with a large portion of the demographic such as Facebook, Digg, Technorati, and other social networking/bookmarking tools to spread the word.
  

• Not directly selling products or services. Actually I didn't find any links to specific products/services offered by Tinker, only a small link at the bottom to Tinker's main Web site... which from the user's perspective, demonstrates a genuine attempt at bringing valuable information to the audience.
  

But why is that last point important? Because sites that position themselves as being a resource, and then hit you over the head with sales pitches are seen as disingenuous. The user is baited into believing the site is there to provide unbiased information, but then it becomes apparent that the REAL reason the site exists is to sell something.

A good example of this kind of tactic are those Web sites who offer something for free, such as a credit report, but require you to sign up for a service in return. The TV and radio ads, as well as the name of the site itself may suggest that you can grab a free item with no strings attached. However, reading the fine print reveals that the user is, in fact, signing up for a trial membership that is only free for a certain period of time. If the user doesn't cancel their membership within the allotted time, they are charged for the service.

That's not to say that providing links from sites such as Buck the Norm to related services and products is a bad thing... it's all in how you position the site AND the links. For example, MoneyMix (my little project for CUNA) allows subscribing credit unions to provide links directly back to the credit union web site, but these links are displayed in an "ad" like format on the right hand side. There's no confusion about the main purpose for the site from the user's perspective and it's a way for the credit union to demonstrate they can help the user with related products and services. Texas Dow Employees Credit Union's work with Currency Marketing to produce Young & Free Texas and Resource One Credit Union's similar attempt My Life My Money are good examples of how products or services can be integrated with a site specifically for my demographic.

Illinois CUs share piece of student loan program pie

Big news from the Land of Lincoln... CUNA News Now reports two Illinois state agencies and eight Illinois credit unions will work together in a new state program to provide financial aid to as many as 20,000 college students each year.

An article today confirmed that the Illinois Student Assistance Commission approved the arrangement which was announced earlier in September.

Two points I'd like to make...

1. It's wonderful to see that kind of collaboration. In fact, the News Now piece mentions that the Illinois Student Assistance Commission had approached six foreign banks to invest in student loans. However, due to the subprime lending crisis, lenders have had to pull out of the student loan arena, says the News Now article.
2. Student loans in particular, and catering to the needs/preferences of college students in general, are only the tip of the iceberg when it comes to truly serving the needs of the demographic and attracting more young adults as credit union members. Not all Gen Y'ers, Millenials, Echo Boomers (or whatever you want to call us) are in college. Many of my fellow young adults didn't go to college or to a trade school and will be facing a tough road if the economy continues to sour. The needs between a 21-year-old in their Junior year at college, and a 21-year-old mechanic are vastly different... even if they both have an iPhone.

On a slightly related note, our credit union friends down under at BDCU in Australia seem to be doing a great job letting members know they've avoided direct exposure to the subprime meltdown. Check out this news piece published in their local paper, the Southern Highland News. Know of any CUs doing the same? Post a comment with a link to the article.

Growing New Branches

CUNA News Now reported today that "43% of [credit union and bank members] said they prefer financial institutions to model their environment after retailers such as high-end coffee shops, and apparel stores known for their top-notch service and personal shoppers." (more on the survey is here.)

I was thinking about this issue recently because my credit union, Great Wisconsin Credit Union, just remodeled the branch I frequent on Yellowstone Dr. They went from a pretty standard bank model to a welcoming and open alternative. You notice the difference immediately after walking in - high ceilings, natural wood and light, soft colors, free coffee (fresh!), bookshelf with financial books you can borrow (Suze Orman and the likes, etc), flowing waterfall by the teller station, and toys for the kids (as I noted in a post earlier, they've also got snacks for the kids). Nice digs on top of good service and products is a big plus. 

But does it matter to young adults? We know that they still value ATMs and branches over online banking. That may change in the future with the growth of online and mobile banking, but for now it makes sense to pay attention.

Models for Inspiration

Look at ING Direct's Cafe model -  A review of one in Philadelphia says "this coffee club is, like Urban Outfitters, an op/pop proposition amid tonier locales; a caffeinated respite that actually serves public function. ING serves a social need — like the Palm Pilot and the cell phone — by allowing users on the go to surf the Internet as well as do their banking or check stock numbers." Serves a social need. Wow. Does your credit union do that?

I also got a few great ideas in a white paper this year from the CUNA OpSS Council. Some examples in the white paper include:

• Planning to “build green” at University Federal Credit Union in Austin, Texas University will open its first “green” branch in October 2008 and plans to build all future branches with a “green” design that decreases energy use, recycles “gray” water that comes from sinks and showers (but never toilets) for landscaping, and reduces the impact on the environment. 
• Spurring growth by introducing “dialogue banking” with teller pods at Innovations Federal Credit Union [check out their website! It's cool.] in Panama City, Florida. Innovations’ leaders credit the dialogue banking approach with helping the credit union grow from assets of $81 million in 2004 to $112 million at year-end 2007.
• Refining the use of remote teller systems at APGFCU in Aberdeen, Maryland. APGFCU shares its experiences on when and where to install remote tellers effectively.

Do a Google search for "Innovative Credit Union Branch" for even more examples and pictures.

Bottom Line

Given a choice between a financial institution with a hip branch or the traditional model, which one does an 18-to-30 year-old pick? I don't think it's a deal breaker - instead your new branch enhances your standing to current and potential members as part of your overall image and value. 

YES Summit Impacts Strategic Planning

Think the CUNA YES Summit is just another conference? As Lee Corso says, "Not so fast, my friend!"

The event has a history of affecting change and sparking new ideas. In fact, here on the YES CU Blog, we've highlighted several credit unions and attendees who've directly benefited as a result of their participation at the YES Summit. You can read more about their experiences here, here, and here.

So, in keeping with this theme, it's time to share how the interactive sessions, collaborative events, and informative dialogue continue to enable attendees to take action when they return to their credit union.

Here's what Dustin Limburg, Marketing Representative for Wright-Patt Credit Union, 30 Under 30 participant, and all-around nice guy had to say about his experience...

“The 2007 YES Summit proved to be a valuable experience that I recommend to anyone involved with young adults. I had the opportunity to learn the importance of technology and social media in reaching the young adult demographic. We have begun implementation of various social media strategies directly related to the content I took away from this great summit!"

The impact of the YES Summit is also reflected in what past attendees said about the event in their evaluations...

“I felt as though I gained a definite advantage in developing programs for the GEN Y group. The interaction with other credit union professionals gave me many fresh ideas and new contacts for assistance in the future.” – 2007 YES Attendee

“The benefits from this program far exceeded my expectations! I was made aware of concepts and ideas to reach Gen Y in ways that I would have never thought of on my own. I want to make sure that I am doing everything possible to effectively reach, inform and maintain Gen Y and this conference made me feel it is not only possible, but essential! Thank you.” – 2007 YES Attendee

"I have a hard time spending money and traveling to CU conferences. However, I feel that the YES Summit is so important due to the need of CU's to focus on this demographic. These young adults are the future of the credit union movement and if we don't dial in their needs, we will not exist!” – 2007 YES Attendee

What about you? Did you attend the YES Summit? If so, how did you and your credit union benefit? Inquiring minds want to know!

75 Reasons to Become a Credit Union Member

An interesting topic caught my eye this week on the CUNA Marketing Council's list serve. Michael Dukehart, Marketing and Business Development Manager at KEMBA Credit Union in Indiana was looking for feedback for a list he was working on.  A long list....but a good one.

The list details 75 reasons (!) to become a credit union member. I asked Michael for more information:

The list was thought up to go along with our 75 Anniversary celebration that is going on all October long.  We are just coming off a 2 month membership drive that includes a drawling for $750.  I did not want to lose out on the surge in referral interest so I came up with the list (with help from fellow employees and other credit union marketers).

It is going to be posted on a promotional webpage that will be linked from our e-newsletter and from one of the smaller graphics on our website.  Next week in our weekly meeting we will be going over the list with the entire staff to make sure that they understand everything on this list if any members or non-members come in asking questions.

Can you imagine a list like this posted up on the wall of a credit union? A floor to ceiling list reminding you of the credit union difference - pretty impressive.

Here is Kemba CU's list in full (my favorite is #70):

1.      We are 75 Years Strong
2.      Individualized Customer Service
3.      Full Range of Deposit Choices
4.      Free Lollypops
5.      Over 4,530 Free ATM Locations & Growing
6.      Full range of Loan Options
7.      Great Rates on Savings Accounts
8.      Friendly and Helpful Staff
9.      Free Coffee
10.     Friendly, Awake and Helpful Staff
11.     Locally Owned
12.     Free Online Banking
13.     Over 3,400 Shared Branch Locations & Growing
14.     Member Owned
15.     Member Operated
16.     Member Oriented
17.     Not-For-Profit
18.     Competitive Mortgage Rates
19.     Community Involvement
20.     Low Fees
21.     Variety of Member Benefit Products
22.     Free Bank by Phone
23.     Great Rates on Money Market Accounts
24.     Youth Focused Accounts
25.     We Love Kids
26.     IRAs Available
27.     Discounted Movie Passes
28.     CD's to fit your needs
29.     Low Minimum Balances for CDs
30.     Educational Financing Options
31.     Dog Treats in the Drive Up
32.     We Love Pets
33.     Free Coin Counting Machine
34.     Yearly Breakfast with Santa Event
35.     Great Auto Loan Rates
36.     Free Car Buying Service
37.     Investment Services Available
38.     Home Equity Lines of Credit Available
39.     Financial Counseling Services
40.     Loan Officers Who Look Out for You
41.     Low Cost VISA Gift Cards
42.     Discounted Theme Park Tickets
43.     $5 minimum Deposit to be a member
44.     Green Online Bill Pay and E-Statements
45.     Friendly and Knowledgeable Tellers
46.     Once a Member, Always a Member
47.     Experienced staff
48.     Security Responsive
49.     Personalized Club Accounts
50.     Deposits insured up to $250,000
51.     Online Applications
52.     Did we mention that our members are our owners?
53.     Nifty Newsletters
54.     Dedicated Board Members
55.     Free Checking
56.     Comfortable couches
57.     We smell good, usually
58.     VISA Credit Cards Options
59.     Free notary service
60.     Used cell phone collection site for Riley Hospital
61.     Member of the Better Business Bureau
62.     Free $1,000 accidental death insurance
63.     Low cost GAP insurance
64.     Mechanical Repair Coverage available
65.     Free medallion signature guarantee
66.     Free parking
67.     24-7 availability at www.kembain.org
68.     Involved with Meals-on-Wheels
69.      Free Direct Deposit
70.      Next Door to a Giant Cow
71.      Loaner Umbrellas in the Lobby
72.      Clean bathrooms
73.      Always a person, never a number
74.      Did we mention locally owned for 75 years?
75.      To be a Cool Member Just Like You

Do young adults care about safety & soundness?

Okay, it's time to come out of blog hibernation mode... lots to talk about, so where shall we start?

Safety and soundness is a pretty big issue right now, so let's take a young adult spin on this theme. Here's something you may not have considered... are you getting the word out to young adults about how safe your credit union is?

Chances are your credit union is communicating some sort of message out to your general membership and the public as a result of recent failures including IndyMac Bank, F.S.B., Pasedena, Caif., in mid-July. If not, you're missing out on an opportunity to let folks know about your CU's safety and financial strength.

And just like marketing messages and tailoring product bundles, you need to tailor your messages on issues such as safety and soundness to be relevant to young members if you want us to pay attention. No matter how important a message may be, if it's not explained in a way that resonates, it'll zip over our heads.

If you're thinking young adults don't care, or aren't paying attention, think again. The IndyMac issue and the recent Fannie Mae and Freddie Mac concerns are making big headlines. News about the economy and gas prices are ever present. Along with the X'ers, and Boomers, we pay attention to the news, and receive mixed messages about the issue.

In fact, an article in the September 2008 Credit Union Directors Newsletter addresses this by recanting a tale where a St. Louis radio station aired an interview with an author who claimed he didn't know if credit union accounts are insured. As the article points out, "Amy McLard, vice president of public/legislative affairs with the Missouri Credit Union Assopciation contacted the station to set the record straight: Federal insurance covers credit unions, too."

So, don't forget about us when important issues like safety and soundness pop-up. If I may make a suggestion, no need to make your message gimmicky or over done. A simlpe message that shows how this is relevant to us and says something like...

Hey, you've seen the recent headlines... you're already dealing with student loans and trying to buy a house. The last thing you need to worry about is whether your cash is safe where you deposit it. So, deposit your hard earned dough with your credit union... the safest of all depository institutions and someplace different than a bank.

Put it on your Web site, send it out in an e-mail or a letter to members between 18 and 30... chances are nobody else is communicating this and you'll win a few brownie points.

What's the Next Big Thing?

First, I'd like to assure you that Josh and I met this week and talked about many exciting things to come for this blog as we progress closer to this year's YES Summit...so stay tuned! We are committed to posting more frequently as well - we've been sidetracked working on other things here in beautiful Madison, Wisconsin. It's not that we don't love you dear readers, we just want to post quality stuff.

Having said that, in the meantime, please enjoy a blog post I just did on Filene's CU Tomorrow blog on "Using Technology to Attract Young Adults – Lessons from Toy Story and Netscape."

> Check it out and comment here.