Credit Union Magazine - January 2009 - (Page 54)

SHOPTALK continued from page 51 have changed charters, and we added a tagline, “Your Community Credit Union.” We found out through focus groups and extensive research that our name is a big plus for us. It ties us to a respected institution, one with a history of trust and loyalty to the community. It’s also an Achilles heel. People think they have to be affiliated with the university to join. But we believe the advantages far outweigh the disadvantages. Cook: Realize that you’re now competing with the “big guys” [banks]. It requires a commitment to branding your credit union, but this doesn’t have to mean investing in a pricey marketing campaign. A strong brand begins with your staff, radiates through your community service work and your product offerings, spreads through word of mouth, and is strengthened by your marketing and advertising efforts. to success for community CUs? Roy: Being involved in Q What are some keys the community, participating not just in events but community groups— chambers of commerce, Rotary, other business groups, nonprofits, and schools—donating money, serving on boards and committees, and providing financial education. Humphrey-Anderson: Certain segments within communities have individual identities we can communicate to. We try to find sections of larger communities where we can go in and serve. It allows us to get involved more easily. Cook: Align your mission and vision with what’s important, not only to your existing member base but to potential members. In the past year and a half, we’ve added a business marketing representative to maintain and strengthen our relationships with our former SEGs and to seek new businesses to become community partners. One thing we’d have done differently would be to hire this individual immediately after changing charters. capitalized on its name recognition when expanding to a larger, community-based ﬁeld of membership, says CEO Gail Cook. She accepts the Community CU of the Year Award (for CUs with less than $250 million in assets) from Lee MacMinn, CEO, Freedom CU, Warminster, Pa. serve members outside the ﬁnancial mainstream? Erie (Pa.) General Electric FCU Hein: Our educa- Q How do you tion director goes to schools, community organizations, and businesses to [discuss] the credit union difference and topics uJANUARY 2009 like budgeting. We’ve never changed our underwriting standards. By maintaining consistency we can mitigate potential risks, even in these challenging financial times. We haven’t chased the deals Community CU success depends on involvement in both community events and groups, says other financial Carlyn Roy, executive vice president/chief institutions may operations ofﬁcer for OSU FCU, Corvallis, Ore. be offering. She accepts the Community CU of the Year Roy: We’ve Award (for CUs with more than $250 million in created a program assets) from John Sackett, board treasurer, Royal where people can CU, Eau Claire, Wis. start with a savings account and an ATM a low-cost alternative card. It helps them estabto payday lending with lish a pattern of savings, a built-in savings benbut they also can get cash. efit. Our Credit Builder For people repairproducts—specially strucing their credit, we have tured loans, Christmas secured loans with a savClub accounts, and Visa ings component. We also cards—help members get offer individual developtheir finances back on ment accounts, where a track. We mitigate risk by government entity match- requiring direct deposit es the savings amount from these members, to be used for a specific requiring that they be purpose, such as housing. members for at least three Our front-line staff spend months prior to applying, a lot of time counseling and considering each situmembers. ation [individually]. Grolemund: We offer free counseling and eduQ What advice do you cational seminars, includoffer other CUs? ing youth financial literacy Cook: Think big, and education at a high school don’t be discouraged that in an underserved area. big banks can outspend Perhaps one of the best you a million to one. It’s examples of our comthe credit union philosomunity outreach is our phy that differentiates us Voluntary Income Tax from banks, and that’s Assistance Program. At what we should be singing tax time, our employees loud and clear in our spend long hours helping communities. members and nonmemListen to interviews with bers file their taxes and achieve the highest returns the award winners at possible. In 2006 we began offering Better Choice loans, 54 CREDIT UNION MAGAZINE ucuna.org http://www.creditunionmagazine.com http://www.cuna.org

Table of Contents Feed for the Digital Edition of Credit Union Magazine - January 2009

Credit Union Magazine - January 2009 Contents On My Way Leading Edge Spotlight President's Perspective Game Plan Washington Insider Wright Stuff Executive Suite Reverse Mortgages Come of Age Six Merger Myths Leading-Edge Lenders TwentyFour/Seven Bankruptcy Compliance Tools of the Trade Trendlines Rates & Ratios Council Corner Shoptalk System Scan Marketplace Branching Out Advertiser Index

Credit Union Magazine - January 2009

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