Currency Brings Gen Y Campaign to America

CHILLIWACK, B.C. — Currency Marketing, the agency behind Common Wealth Credit Union's award winning Young & Free marketing campaign, announced it will offer the program to other credit unions in Canada and the U.S.

The award-winning campaign, geared toward Gen Y members, uses a microsite, social media and traditional marketing centered around a spokesperson search and product launch. The Gen Y spokesperson creates YouTube videos, posts daily blog entries and attends youth events to connect the credit union with young new members.

Tim McAlpine, Currency Marketing's president and chief strategist, said his agency will only license one credit union per state or Canadian province. Smaller credit unions could potentially participate through a league or other collective group, if a state lacks a credit union able to take on the project solo. Young & Free will also remain credit union exclusive: no banks are allowed to participate, McAlpine said.

The $1.6 billion Common Wealth introduced its Young & Free checking product in an attempt to attract Gen Y members in its home province of Alberta. Currency's campaign took top honors in four categories at the MAC Awards, and three first-place CUES Golden Mirror awards.

WesCorp Lowers Fees as More Switch From Paper

SAN DIMAS, Calif. — WesCorp lowered its price to process electronic member check collection files, announcing a 5% price reduction for the month of June. The $31 billion corporate said credit unions have decreasing processing costs for images to thank for its second price reduction since offering the relatively new service.

"As more and more member credit unions embrace the new efficiencies of image processing first envisioned by Check 21 legislation, WesCorp is able to pass on these savings to our members," says WesCorp's Richard Stanton, Director, Product Sales Support.

Stanton said WesCorp members can expect another price reduction before the end of this year, as the more credit unions switch from paper to images. The new technology adoption is fueled, in part, by the rising costs of paper processing. The Federal Reserve Bank will increase paper-clearing fees by 30% on July 1, and has promised additional increases. Stanton said WesCorp expects to raise prices on paper check processing January 1, 2009.

Consumers Need Reason To Switch to Green Banking

SAN FRANCISCO — While most consumers express and interest in adopting green banking behaviors, three out of four consumers still receive paper statements finds a recent Javelin Strategy & Research Green Banking report. The report finds that the reason green banking habits have yet to take hold is because consumers are not aware of how they can make a difference and financial institutions have yet to find incentives that compel customers to participate.

According to Javelin, if every U.S. household stopped receiving paper bills and statements, 687,000 tons of paper would be saved every year–enough to circle the Earth 239 times.

"Green banking clearly has a direct, positive effect on the environment, but the benefits go much further, reaching into security and cost," said Jim Van Dyke, president of Javelin Strategy & Research. "Financial institutions will save money every time a customer switches to electronic statements and transactions, and consumers significantly reduce their risk of becoming a victim of identity fraud by going paperless and using online banking services–everybody wins."

Javelin researchers believe availability, accessibility and complexity are the central challenges stalling the adoption of green banking behavior. Financial institutions must focus on products and promotions that speak directly to environmentally conscious consumers, including "green audit" calculators to help consumers compute the environmental impact of their banking behavior, a one-stop paper statement shut-off option for all accounts and green banking marketing campaigns that reward customers for eco-friendly practices.

"Most consumers want to do the right thing, but if the process appears confusing or inconvenient, they simply aren't going to bother changing their banking habits," said Mark Schwanhausser, research analyst at Javelin Strategy & Research. "In many ways, it's up to financial institutions to influence consumers. They must offer tangible, compelling 'green' options and make them as simple as screwing in a CFL bulb."

Chevron FCU to Convert 55,000 Debit Accounts

ST. PETERSBURG, FLA. — The $1.2 billion Chevron Federal Credit Union has signed on with PSCU Financial Services in a five-year agreement to convert its 40,000 offline debit and 15,000 PIN debit accounts.

Chevron FCU said cited PSCU Financial Services fraud management technology and its 24/7 Contact Center as reasons behind the agreement.

"The conversion of this large and influential credit union is testimony to our leadership in the debit arena," said David J. Serlo president/CEO of PSCU. "In addition to outstanding fraud management and Contact Center support, we have a dedicated debit team that focuses on creating promotions designed to stimulate growth within credit unions' debit portfolios. We make it convenient and cost-effective to actively promote debit cards, resulting in additionally interchange income and greater member loyalty."

PSCU topped 500 million debit transactions in 2007 and debit account growth is up 66% for credit unions who process debit through PSCU.

NECU Finds Silver Lining

PORTSMOUTH, N.H. — Northeast Credit Union is doing its part to ensure at least part of members' economic stimulus checks is going into savings.

The credit union has recently unveiled its Silver Lining Savings, a savings account with an annual percentage yield of 4.09% on the first $500. In addition, it includes special benefits such as no monthly maintenance, minimum balance or withdrawal fees, and electronic funding and automatic deposit transfers from other accounts.

The account is designed to encourage consumers to save at least some of their economic stimulus checks to start an emergency fund that can cover unexpected expenses and the rising cost of living.

"We believe it's essential for people to be educated about the necessity of having a savings account they can fall back on in these touch economic times," said NECU President/CEO Peter Kavalauskas. "By using the Silver Lining Savings account, people can take advantage of the higher interest rate and see their money grow at a faster rate."

Consumers are also directed to NECU's online Financial Education Center at necu.org where they can find timely tips on saving, investing and managing their money.

Airline Industry Reeling

CHICAGO — A report by the Associated Press said United Airlines is cutting up to 1,100 more jobs and mothballing 100 fuel-guzzling 737s while slashing domestic capacity as it struggles to maintain operations amid spiraling fuel prices. The nation's No. 2 carrier said the cuts would be in the contract and management area and happen by year-end. It previously announced 500 job reductions.

Separately, Houston-based Continental Airlines said it is cutting 3,000 jobs and reducing capacity, calling record fuel costs a "crisis" for the industry. The airline will remove 67 jets from service and its president and CEO will defer any salary and bonuses for the rest of the year.

Earlier last week, the International Air Transport Association (IATA), revised its industry financial forecast for 2008 significantly downwards due to the high price of jet fuel. "For every dollar that the price of fuel increases, our costs go up by $1.6 billion," said Giovanni Bisignani, IATA director general/CEO.

"We also need to take a reality check. Despite the consensus of experts on the oil price, today's oil prices make the $2.3 billion loss look optimistic. For every dollar that the oil price increases, we add $1.6 billion to costs. If we see $135 oil for the rest of the year, losses could be $6.1 billion," said Bisignani. "The situation has changed dramatically in recent weeks. Oil skyrocketing above $130 per barrel has brought us into uncharted territory. Add in the weakening global economy and this is yet another perfect storm"?