ARLINGTON, Va.-In the wake of Bank Transfer Day, a survey by NAFCU finds CUs reporting they are instituting tactics to sustain membership growth, including marketing campaigns focusing on the advantages of credit unions over banks, auto loan promotions, and holiday loan rates.
That's the right approach, according to NAFCU President Fred Becker, who told Credit Union Journal that while some banks may have backed off fees that alienated customers, the charges are going to show up again via other products. "The banks are playing Whac-a-Mole, a fee is taken away only to pop up again somewhere else, presenting credit unions with another opportunity to pick up members. I think this will continue for some time," said Becker.
The NAFCU survey found that 63.9% of respondents saw membership growth in October over September, with 21.7% seeing an increase of more than 20%. Credit unions reported that the most common reason given for switching were dissatisfaction with banks (50.8%), an increase in debit fees (23.8%), and poor customer service (11.1%).
Close to half (41.7%) of respondents reported share growth in October in excess of 20% over the same period last year.
"We have been talking for years about a national credit union media campaign and Bank of America and other big banks delivered it to us at no cost," said Becker.
