good2CU.com says its dual-function portal makes for a "sticky" site

AUSTIN, Texas - Throw an electronic dart on the Web and you have a good chance of hitting a portal site. good2CU.com says it's not that simple to find a good portal and that credit unions are going to start seeing the differences between their portal and the thousands of other ones crowding the Web. "We're different than a typical portal. Ours is really tied to just the products the credit union is offering. Generally we're going to promote things credit unions do, online banking, online trading, insurance quotes ..." said Lee Cooke, president/CEO of good2CU.com. good2CU.com's portal is both transaction and content-based. Some portals focus on one or the other, but Cooke said credit unions should offer both if they are serious about keeping members focused on the CU's offerings. "Credit union members going to their credit union's site and linking off to other places doesn't create the stickiness to their site that a credit union needs. You can lose the loyalty which the credit union is the ultimate beneficiary of," said Cooke. That's not to say good2CU.com doesn't offer links, but the links are focused on the credit union's core business, said Cooke. For example a link to Kelley Blue Book can help a member purchase a car, which a credit union can provide the financing for. Unlike some other e-commerce offerings in the credit union industry, good2CU.com does charge for its service. Cooke said the subscription prices good2CU.com charges are minuscule compared to the money some banks and other financials are spending on their portals. Cooke said good2CU.com has invested a lot of money in its offering like the mega banks have, CUs don't have to. "Credit unions are competing with folks on the Web spending tens of millions of dollars-Citibank, Schwab, Bank of America, Wells Fargo. Credit unions are worried about retaining assets, and on the Web competition is just a click away," said Cooke. good2CU.com has a tiered pricing structure based on membership, with annual fees for its supersite portal ranging from $6,000 to $18,000. For credit unions that sign up with good2CU.com by April 30, the first six months of service are free. Cooke said credit union members may be more vulnerable to competing financials on the Web, than non-members because of members' Web-savvy. A recent CUNA/PSI Global study found that 55% of credit union members are online, while only 37% of non-members are. Cooke said that it's only natural for Web-savvy members to venture over to other financial sites. If they find their credit union offers the most comprehensive site and that it's tailored to their individual needs, the CU's site will get the "stickiness" Cooke said CUs need. "Our site is a financial offering to enhance the credit union members' ability to learn, do financial analyses, and receive advice about their financial picture," said Cooke. Since unveiling its service in the summer of last year, good2CU.com has signed up over 150 CU clients, including large CUs such as Keesler FCU and State Employees CU of Maryland, Inc. More than 100 CUs have contracted to use good2CU.com's online loan approval service, which allows CUs to receive a variety of loan applications over the Web and process decisions in less than 60 seconds. The online lending aspect is provided by FIData, which good2CU.com acquired in the fall of 1999. -pgentile@cutimes.com