Credit unions with branches on college campuses are in a uniqueposition to attract new Gen Y members. But proximity alone doesn'tguarantee a relationship. Getting students through the door takesingenuity-and is not without challenges.

For one thing, incoming freshman aren't as easy to sign up thesedays.

“Five years ago when students arrived at college, they didn'talready have an established financial institution. We were oftenthe first experience for an account,” said April Clobes, executivevice president at Michigan State University Federal Credit Union.“Now students come with accounts that have been opened for a fewyears because they needed a debit card to make purchases on iTunes,Xbox LIVE, etc.”

To address this issue, the credit union has changed itsmarketing materials, redirecting the focus to getting students tomake the switch by explaining why the credit union is a betterchoice-namely, it offers better rates and lower fees and owns theonly branch within walking distance of MSU as well as all the ATMson campus and around East Lansing.

“Also, we focus on the connection to the university andemphasize that our debit or credit card and checks feature MSUcampus scenes on them, so you can show your Spartan spirit!” Clobessaid.

With the constant stream of media from their many gadgets,another challenge can be simply getting students' attention.

“Students are hard to get through to,” said Jim Kelly, seniorvice president of marketing at University of Iowa Community CreditUnion. “Every generation that comes along has been marketed to morethan the last. They have become adept at zoning the messagesout.”

The credit union has hit upon one message that students findhard to ignore: free money. Its referral program, whereby studentsare mailed a check once the referred account is active, has been abig draw, Kelly said. “If they can earn money telling friends aboutthe credit union, then they seem to perk up.”

The credit union also cuts through the noise by getting rightinto students' hands via one of their greatest necessities: theirstudent IDs. Through a partnership between the credit union and theUniversity of Iowa, students who open an Iowa One checking accountwith the CU can use their student IDs for free access to all campusATMs.

But for the Credit Union of Ohio, vying with the big banks forATM deployment on and around the Ohio State University campus canbe a real challenge when the opportunity is put out forbidding.

“Students want convenience,” said Kim Hudson, vice president ofmarketing at the credit union. “Large multinationals have deeppockets for delivery channel deployment in campus buildings.”

However, the credit union competes on other fronts by boldlygoing where some banks won't go. After conferring with otheruniversity credit unions, CU of Ohio rewrote its procedures toserve the international student community. “Some big banks won'tserve international students because they don't have a [SocialSecurity number] and the reporting can be cumbersome,” Hudsonexplained.

She added that many international students are grad studentsreceiving stipends or teaching assistants with direct deposit, sothey start with checking and savings accounts with pretty healthybalances. Also, many stay in the U.S. after graduation to work fortop U.S. companies, especially in the tech, science and medicalindustries.

And although large banks have deep pockets, it doesn't have tocost a lot to make a big impression, as CU of Ohio has learned withits Buckeye Buttons. Each year, the credit union runs a slogancontest for the 12 regular season football games (and a special onefor a bowl game) to produce weekly buttons-20,000 total for lessthan a quarter each. The credit union hands out the buttons forfree, but fans must go to a branch to get them.

“I think the buttons have been more effective than othertraditional advertising we've done on campus,” Hudson said. “Fanscome in weekly for 12 weeks and get to know us. And they'reviral-we'll be increasing our quantity next year.”

Unlike CU of Ohio, UT Federal Credit Union doesn't worry muchabout banks on campus. That's because at the University ofTennessee, Knoxville, UTFCU is the only financial institution oncampus. In the summer of 2009, the credit union won a bid from theuniversity to fill the space left from a merger of the bursars' twolocations into one. Although other banks have ATMs on the campus,UTFCU has the most machines and the only branch.

UTFCU uses its “only bank on campus” distinction in its UTKbranch logo and student microsite. The CU said the branding helpseducate students and parents about the flexibility of a creditunion.

“We used the word bank in our name because that's what ourmembers do with us-they bank with us,” said Malinda Wood, vicepresident of marketing. “Many younger people think a credit uniononly offers loans or credit cards. Likewise, many of their parentsthink you have to work for a specific employer to use credit unionservices and that we're only a good option for savings or payrolldeduction.”

Although UTFCU and CU of Ohio have different situations when itcomes to campus ATMs, both credit unions know how to bring foottraffic to a campus branch. A photo booth that UTFCU rented for itsuniversity center branch during homecoming last year drew about 600people over the course of four hours. It cost about $2 per person,and the credit union didn't charge for the printouts, which had sixphotos each and the branch logo strip down the middle.

“This was a ton of fun,” Wood said. “I hope to do it again thisseason and make it an annual event.”

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