The Rundown

• The viral Bank Transfer Day movement has been anopportunity to educate consumers on why credit unions are a betterchoice.
• To get consumers to act, let consumers know switching iseasy, not a chore.
• Credit unions should find ways to leverage and extend BankTransfer Day beyond Nov. 5

Credit unions hope the growing consumer anthem of “We're notgonna take it,” over the latest debit card bank fees, has thoseconsumers primed to make a switch.

Bank Transfer Day, the brainchild of a Los Angeles art dealer, has delivered what credit unions havelong sought, said Brent Dixon, youth adviser for Filene ResearchInstitute and Crash Network founder.

“Credit unions have forever been trying to come up with anational brand awareness campaign, but now you have Bank TransferDay, which is fully from the people, not trade associations or eventhe credit union industry,” Dixon said. “It's driven by realemotions, frustrations and needs. It's a huge opportunity forcredit unions, and I hope beyond the marketing, they really make iteasy for consumers to act and move their money over.”

Credit unions across the country have certainly been making the most of theopportunity presented.

In Minnesota, Affinity Plus Federal Credit Union's latest roundof its edgy, irreverent “Ditch Your Bank” awareness campaign hasexpanded to include advertisements that question the new fees.

Launched on Oct. 7, the ads, which use humor to take a swipe atthe “cloak and dagger bank fee structure,” also educate consumerson the credit union difference of transparency and helping membershold onto as much of their money as possible. The multimedia blitzincludes digital billboards, radio spots and newspaper ads.

“Minnesotans shouldn't feel like they're held hostage byfinancial institutions that continue adding new fees, charges andrate increases,” said Kyle Markland, president/CEO of the St. Paul,Minn.-based $1.4 billion credit union. “The advertising response isour way of telling consumers that we sympathize with them, and thatthey have an alternative when it comes to where they do theirbanking.”

In addition to offering fee-free debit cards, Affinity Plusrewards members for using their debit cards through the creditunion's participation rewards program. Members earn points for eachtransaction, which can be cashed in for loan rate decreases, usedto skip a loan payment, or turned into monetary donations to localcharities.

“Our members work hard for their money, and it's ourresponsibility to focus on doing what is right for them by helpingthem keep their money where it belongs, with them,” Marklandsaid.

According to Sandra Olson, event coordinator/member adviser atAffinity Plus, members have been responding to the message, and thecredit union has experienced an uptick in accounts across the boardfrom loans to checking accounts.

“This has been an awesome opportunity to educate consumers aboutthe difference between a credit union and a bank. So many stillhave no idea what a credit union is,” said Olson. “How could we notleverage what the banks have handed us, we owe it to the people ofMinnesota.”

Equally proactive in its messaging, The Golden 1 Credit Unionhas taken advantage of the rising consumer discontent to reinforceits commitment to free checking and no debit card fees whilepositioning itself as the local, full-service convenientalternative to mega-banks.

Within a day of Bank of America's announcement of the $5 monthly fee for debitcards, the Sacramento, Calif.-based credit union launched anawareness campaign on billboards, newspapers and radio advisingconsumers to “Stop paying for something that's supposed to be free.Drop your Bank America.” According to Scott Ingram, senior vicepresident of marketing at Golden 1, feedback from focus groupsrevealed that despite hating their bank, many consumers stay forconvenience and because they don't think they have another choice.In addition, the $7.7 billion credit union has been making themedia rounds as local newspapers and television news stationscontinue to ask Golden 1 to weigh in on what consumers can do.

“We're focusing on the value proposition that Golden 1 offersmembers and why we're the better choice. The message in thiscampaign is not just the free checking or debit cards, but that weare in many ways more convenient than their bank options,” saidDonna Bland, president/CEO of The Golden 1. “We're trying to letconsumers know that they deserve better from their bank.”

It's a message that has resonated. In the first half of October,the number of new members who have joined online has more thandoubled representing a 110% increase over its normal monthlyaverage of new online members. In addition, there has been a 34%increase in free checking.

San Diego County Credit Union, which has been urging big bankcustomers to switch since January, has also drawn attention to itslongstanding policy of offering free debit cards.

According to Teresa Halleck, president/CEO of the San Diego-based creditunion, while “many big banks will continue to seek out new ways toincrease current fees or invent new fees, leaving many customersfeeling nickel-and-dimed,” SDCCU will continue to offer many freeservices and fees to a minimum “because our members are our owners,and we have their best interests at heart. We did a Beach Bankersprotest during Labor Day weekend to tie into our TV commercials,which have for many months featured bankers celebrating theirprofits and high fees. So, our timing on these initiatives wasahead of the curve and proven to be very timely.”

She added that year to date, the 2011 new account openings havebeen up over 28% compared to 2010.

The over $5.2 billion credit union has also emphasized how easythe switch can be.

“Within the past few months, we launched the ability for aconsumer to fully open their SDCCU accounts online, thus making itpossible for any big bank customer to begin moving their accountswithout delay,” said Halleck. “There is no need to take off work orstand in line to do business at SDCCU.”

A move that many industry experts agree may be the key togetting consumers from simply voicing their frustration to actuallymoving their money to a credit union.

It's also something the $155 million Tobyhanna FCU in Scranton,Pa. has incorporated in its “Divorce Your Bank” campaign slated forNovember. With a focus on women, an easy switchtoolkit aimed at making bill pay easy to do and easyto switch has been a key campaign element.

“One thing we are doing is telling our members 'we'll do all thework' in helping convert to our bill-pay system,” explained NinaWaskevich, vice president of marketing/sales. “I think there is amisperception by the public that it is difficult to convert to acredit union.”

She said Tobyhanna's service reps have been trained in recentmonths to encourage members “to just bring their pile of bills into the branch, and we'll set up bill pay for them.”

A new booklet tied to the “Divorce Your Bank” theme will outlinethe steps to make the change and will be branded with a femaleimprimatur in marketing materials.

“We're going to use the wording 'perfect match' and 'breaking upis not hard to do,'” in the messaging, Waskevich said.

The Tobyhanna “Divorce Your Bank” promotion has already begunwith teaser billboards launched during the week of InternationalCredit Union Day, pointing out that the credit union doesn't chargea $5 monthly fee for debit cards, like Bank of America.

Waskevich said the campaign also will use radio ads, Facebookand a special “Divorce Your Bank” website.

“Right away we picked up on the consumer's attitude of being fed up withthat ridiculous Bank of America fee,” said James Kanaley,president/CEO of the 21,000-member Tobyhanna FCU.

BofA's move, said Kanaley, to recoup lost income frominterchange “is just typical bank reaction of sticking it toconsumers.” He noted that he was an executive at banks in Denverand Syracuse, N.Y., before coming to Scranton.

These fees “have become much more onerous” than Congressexpected as it tried to protect consumers, Kanaley said.

In Houston, United Community Credit Union has extended itsInternational Credit Union Day celebration to coincide with BankTransfer Day on Nov. 5.

As part of its approach, the $79 million credit union haschallenged its members to take a proactive financial role bypledging to save more, spend less and manage their credit. So far,some 500 members have signed the pledges, which have been posted atthe credit union's four branches. In addition to the pledge,members are take an online money management course, which featurestopics ranging from setting financial goals and tracking theirspending to building a household budget. Nearly 75 credit unionmembers completed the course within the first week it wasoffered.

On Nov. 4 and 5, any new member joining UCCU will receive awelcome package complete with T-shirts commemorating their supportof the credit union movement. In addition, one lucky UCCU memberwill also receive a $500 boost to their savings account. The memberwill be randomly selected from the list of people who complete themoney management course.

“With all that is happening in the economy, consumers are eagerto take a proactive approach to financial management,” saidShalonda Dawkins, vice president of marketing for United Community.“Our job as financial institutions is to provide them with thetools to make that happen.”

To further the buzz, many credit unions have turned to PTP NewMedia's T-shirt company, CU*SWAG for help. At press time, over2,000 “Join the CU Revolution” T-shirts were in production.

James Robert Lay, PTP New Media grower of relationships, hashopes that credit unions will harness consumers' desire for changeand keep the momentum going beyond just Nov. 5.

—Jim Rubenstein contributed to this article.