BOCA RATON, Fla.-For many people, becoming a member of BECU means a change in behavior.
Rather than large branches, the $10-billion BECU operates 45 smaller-footprint Neighborhood Financial Centers that are cashless and require interaction with ATMs. That has proved to be anything but an obstacle to the waves of consumers who have joined BECU in the last nine months, including the 60,000 who joined in October of 2011 alone in the month leading up to Bank Transfer Day. The credit union now has more than 760,000 members, a figure that shows no sign of abating.
But all that member growth is not a good thing, reminded Scott Strand of BECU, if members aren't borrowing and establishing other relationships. In remarks to CO-OP Financial Services' THINK 12 Conference, Strand noted that "the challenge for us is growth and the lack of loan growth, while deposit growth has been high."
The keys to BECU's strategies are member engagement and expanding remote channels, with the execution coming in focused product growth and mobile and ATM access, Strand said. "New member growth without the member bringing products and transactions is not good," Strand said. "We've done a lot more training to ensure members understand the model, including training on ATMs. That's going to be a big, big focus of ours."
Thanks to some foresight, BECU found itself well-positioned for Bank Transfer Day after launching marketing messaging in 2008 that emphasized that it is a local lender and is member owned. Its messaging has included "We Are Owned by You," "We Are Not for Profit and All for You," and "We Are Taking Stock in One Another."
Off The Charts
"Our brand awareness has really been going off the charts, and when (Bank Transfer Day) happened we were prepared and waiting," said Strand. "When BofA announced [its] $5 fee, our membership really accelerated. There was stress on the system. We took a soft approach from a media standpoint. We didn't do anything specific or heavy for Bank Transfer Day, because it was really already coming in. We didn't do any product changes or ads. We already had free checking and felt we had the product set. On the day before Bank Transfer Day, we actually opened twice as many accounts as Bank Transfer Day itself."
Like other credit unions, Strand said BECU saw significant local press coverage, some of which continues. So does the growth. For Q4, 2011, BECU saw 38,744 members. Loan apps and originations were up 50%, loan balances were up $150 million, and deposit balances increased $280 million. But just as importantly is the volume hasn't led to lower service levels. Strand said BECU's Net Promoter Score increased to 77% from 70%.
"We are still seeing member growth at a much higher level," said Strand. "It has been a seismic event for us."
