The primary New Year's resolution for credit unions and the collective industry as a whole should be to get the word out about credit unions–brand these terrific institutions so consumers will understand what a credit union is and begin to turn to them in 2007 to improve their financial lives.
Anyone who reads this column with any regularity knows that I believe branding credit unions is one of the most important things to do for the survival of credit unions. People disagree on how to do it. I think a national effort is necessary, but that effort must be complemented by regional and local efforts by individual credit unions.
Many wonder what "branding" actually is. To me it's simple: It's what consumers think of when they hear a particular company's name, see their logo, watch a commercial, etc. When I see anything for Apple Computers, I think hip, innovative, and a company that likes going against the grain. The "I'm a Mac", "I'm a PC" commercials have gone a long way to further my image of them.
Recommended For You
Of course it helps if people first understand the entity that is being branded before building a brand image. Do people know what a credit union is? What do they think of? Hopefully they do not think of labor unions or just a place to keep a savings account.
Although I am always clamoring for more efforts, I must admit that credit union branding has made great strides. Take my experience over the holiday. One evening I turned on ESPN 2 to tune into the first NCAA football bowl game of the season. The score pops up and low and behold the game is being sponsored by Orange County Credit Union! That's a national television event. Good for them, what a great way to get your name out there.
On Christmas morning I was reading the business section in my local paper. A national syndicated columnist was talking about reducing debt and saving more as a New Year's resolution. Sure enough the second person cited was none other than CUNA President/CEO Dan Mica. Mica not only got in some good comments about saving, he also touted the credit union difference. (CUNA is also behind a financial education radio program on Radio America that helps consumers with financial issues, but also plays up credit unions.)
I also saw a news report on Lower East Side People's Federal Credit Union and how Congressman Rangel and Mayor Bloomberg kicked off a new anti-poverty initiative at Lower East Side People's Federal Credit Union in New York (see page 3). Two big name politicians choosing a credit union location to kick off a major economic initiative? Perfect!
It didn't stop there. I logged on to The Washington Post as I often do and sure enough there was a story on Lafayette FCU and their terrible (my words, not the Post's) decision to convert. (More on that travesty in next week's column.) While that wasn't good news, it was one of the nation's leading publications covering a credit union news story.
All these things add up to awareness. In a span of three or four days in my normal course of living I was hit with these credit union awareness stories. It was great, and it must continue. Build awareness and then shape the image of credit unions.
But the industry can do more from a more day-to-day member service perspective to build credit union awareness. There are opportunities where credit union leaders must come together and decide what to promote.
How about the strong credit union ATM and shared branch firms like CO-OP Financial, CUSC, FSCC and others? What they offer should come to the forefront. Do enough consumers know that CO-OP Financial has thousands of surcharge-free ATMs and also shared branching locations? If members thought "credit union" when they saw the CO-OP logo on an ATM that would reinforce the convenience and service of the credit union system. As CO-OP Financial CEO Stan Hollen told me recently, his firm will continue to focus on building its brand nationally, but it needs the help of credit unions. CO-OP Financial provides member credit unions with lots of branding material to use on their Web sites, in newsletters, and at the ATM, but some credit unions are more diligent than others about promoting the CO-OP brand. CO-OP's deal with 7-Eleven convenience stores is another way it is hoping to build awareness of the brand. What about the industry's strong, national shared branching network? It's a powerful tool that not enough people know about.
Do credit union leaders want to see CUNA's "America's Credit Unions, Where People are Worth More than Money" in more places in 2007 than just on some CU Web sites and in their newsletters? What's wrong with a modest campaign of ads in USA Today or banner ads on popular Web sites?
Then there's International Credit Union Day, which is a nonevent in the U.S. despite the president's annual proclamation. Wouldn't that be the perfect day for a national campaign? I would use national branding to tackle the lack of membership growth. Every ad should have a link to CUNA's or some other site where Americans can do a search to find out which credit unions they are eligible to join. Everyone is concerned about slow membership growth. A solid national branding campaign, where every ad ends with a message for consumers to find out about membership opportunities, could turn the tide.
Some people are probably tired of hearing me rant about branding, but look around folks: Credit unions are in the crosshairs of bankers, they are under attack from a conversion "movement" that wants to see all CUs become banks, and credit union numbers continue to dwindle. Brand awareness can help spread the positive story of credit unions. Let's make it a good year and I promise to leave branding off this column for at least a few months. –Comments? E-mail [email protected]
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
