Everybody's talking about the unprecedented opportunity thatsits before today's credit unions. As programs like free checkingand debit rewards circle the drain at big banks across the country,angry customers are shopping for alternatives.

To be sure, this extraordinary chance at growth cannot besquandered. That said, leadership at the nation's CUs must proceedwith caution when courting these angry bank customers.

Strings Attached to the Term 'Free'

The first sales tactic that naturally comes to mind for CUshoping to take advantage of the big-bank PR nightmare is toadvertise their own free checking products. But what many may notrealize is that the word “free” has quite a bit of baggage whereregulatory examiners are concerned.

Truth in Savings regulations state that advertisements cannotrefer to or describe an account as “free” – or even “no cost” – ifany maintenance or activity fee may be imposed on theaccount. Therefore, it's extremely important for a creditunion to fully understand the fee structure behind its “free”checking product when planning to advertise it as such.

Perception is Reality

For many bank customers – even the really frustrated ones – theperceived difficulty of switching financial institutions will be amajor roadblock. Not only do they anticipate the switch taking agreat number of hours; they also worry about what they'll miss ifthey ditch their national bank with ATMs on every corner,convenient online bill pay – and now sophisticated mobile apps thatlet them do their banking from anywhere, anytime.

CUs must first do their research to understand exactly whatproducts and services they will be competing against when trying towin business from the big-bank customers in their area. Bypreparing a competitive analysis on products ahead of time – andtaking the time to train front-line staff on the sales strategy –CUs will be better equipped to answer the challenging questionsthey'll undoubtedly receive from prospects.

The Extra Push

Regardless of how simple a CU makes the switching process,marketers are still facing an uphill battle, as they are askingbusy Americans to take action – and quite a bit of it. They areasking the prospect to do her or his research, compare financialinstitutions, make the switch and then learn entirely new people,new locations and new processes.

For that reason, a CU may consider giving these anxiouscustomers a little nudge in the right direction by offering anincentive for making the switch. Perhaps this is double cardrewards during the first six months – or maybe a cash-backincentive for each debit transaction in the first year. Butremember, full disclosure of the promotion is important to satisfyregulatory requirements.

Careful What You Wish For

Those big-bank customers who are up in arms have a right to beupset with the changes their banks are making. And they are not inthe minority. One study showed more than 50% of debit customerssaid they would stop using their card or switch banks if certainfees were imposed.

However, CUs looking to attract these upset customers should berealistic about the type of customer they are pursuing.

Are these the kind of hair-trigger customers who will jump shipat any hint of a new direction? What is their threshold for changeand how does the CU mesh with that level of tolerance? Mostimportantly, are these customers going to be profitable or are theylikely to expose the CU to headaches – or worse yet, risk?

If a CU has identified qualities that a prospective membershould have in order to be a part of the institution, it shouldcontinue to adhere to the plan. Otherwise, growth could come at apretty significant cost.

Starting Close to Home

One segment of the target market that CUs have a tendency tooverlook is that of current members. Smaller CUs know all too wellthat a great number of their members use only one or maybe a smallhandful of the services available, choosing to place the majorityof their business with national banks. But many of these membersmay right now be reevaluating their decision to compartmentalizetheir financial services.

Organic growth has a tendency to give development effortsinvaluable momentum. CUs should evaluate how many of their currentmembers are not taking advantage of their most competitive programs– like free checking – and go after them with salesgusto.

More than the Sum of Parts

Credit unions, in particular, have a tremendous competitiveadvantage today. Fed up with big banks that seem to valueshareholder return over customer satisfaction, consumers arelooking for a financial institution that will not only treat themfairly but will also appreciate their input.

Because CUs are member-owned, consumers are likely to beattracted to the idea of belonging. For this reason, CUs mustremember to take a step back before crafting advertising, PR andcommunication campaigns to bring in the free-checking crowd. Theymust be sure to include messaging about the overall value – beyondaffordable products – that a CU can contribute to a prospectivemember's financial future.

In Conclusion…

Hostility against that nation's large banks andfinancial-service mammoths has been bubbling under the surface fora long while, and it is very near erupting. Today's consumers areready to hear from the CUs in their neighborhoods. Those CUs thattake the time to first craft a strategy for which customers theywant to bring into the fold, how they will win them over and howthey can earn their trust and loyalty over time have the bestchance at success.

It may be tempting to strike while the iron is hot. But doingthe homework and preparing for today's new kind of customer will beworth the effort. After all, there is usually only one chance tomake the right first impression.

TJ Riha is CEOof debit consulting firm PayFusion LLC and Andrea Stritzke is vicepresident of regulatory compliance for PolicyWorks, both in DesMoines, Iowa.