Arizona FCU's Membership Fee Breaks New Ground, Some Members Flee: Print Preview
- Arizona FCU loses 15,000 members because of new fee.
- Aimed at building primary loyalty, credit union contends the strategy is working.
- Critics say fee runs counter to credit union ethos.
Although there are more than 93 million credit union members, only 40 million use a credit union as their primary financial institution. So is there any way to convince the remaining 53 million members to bank at a credit union for their day-to-day financial needs?
Currently, the credit union said its membership stands at a little over 152,000 but expects the membership losses to stabilize. It said it has been gaining 1,000 to 1,500 new members every month. Though the credit union insists the membership fee is not a revenue play, it will generate $5.4 million annually at its current membership level.
Kelley said the new member acceptance rate of paying the $3 membership fee is more than 80%, and less than 20% rejected joining because of the fee.