DENVER -
It's a question Credit Union Journal asked leaders in the CU industry in response to Bellco Credit Union's advertisement directly aimed at luring members away from New Horizons Community Credit Union.
San Antonio-based Security Service Federal Credit Union recently acquired Denver-based New Horizons Community CU's four locations, 18,000 members and $150 million in assets.
Bellco's advertisement features the words "NEW HORIZONS CREDIT UNION MEMBERS: JOIN BELLCO AND GET $100!" The basis behind its campaign warns members of New Horizons with "your savings is about to take a trip without you. New Horizons was recently bought by a Texas-based credit union, which means the money you've grown at New Horizons is leaving Denver...If you don't want to plan a trip to visit your money in Texas, there's still a way to keep your money right here in Denver."
Bellco Campaign 'Disappointing'
"We thought this campaign put out by Bellco was disappointing. I think it doesn't exactly support the cooperative philosophy we try to encourage," said John Worthington, senior vice president of corporate communications for Security Service FCU. "Certainly we compete, but we try to do it a professional manner."
Furthermore, Worthington said, the campaign doesn't contain accurate information.
"We've been operating in the state of Colorado for 27 years," he said. "We have one-and-a-half times loans out to Colorado members as we have in deposit funds. We also have 200 employees in Colorado. The argument from New Horizons that money is going to Texas is just stupid."
Security Service FCU operates an additional nine locations in Colorado. The addition of New Horizons increases the number of locations to five in Denver and 13 in the state."
Worthington also said that Security Service FCU acquired New Horizons fair-and-square as they bid along with other credit unions, including Bellco.
"We were the ones selected by the NCUA," he said. "We anticipate a smooth transition and look forward to working with NHCCU personnel as we assume operations," Worthington offered. "We are confident that we will be able to provide the members of NHCCU with the utmost service as we continue to offer them the full benefits of credit-union membership."
In a written statement e-mailed to the Credit Union Journal, Bellco said, "Bellco has a long-standing commitment to the Metro Denver community spanning 70 years, and believes that locally based credit unions offer the best value and services to its members. Our awareness campaign lets New Horizon members know they have the option to keep their money in Colorado where decisions are made locally."
Campaign 'Bold' And 'Daring'
Long-time credit union hand Larry Blanchard said that while Bellco's campaign is "bold" and "daring," it shouldn't come as a surprise.
"My first reaction is 'Welcome to the 21st century,'" he said. "Credit unions have always competed with banks and now they're finding themselves competing with other credit unions. We are in an open and competitive society."
And Blanchard, who currently works for CUNA Mutual Group ought to know, having worked in a wide variety of credit union-related jobs including turns at Newport News Shipbuilding and Dry Dock Company Employees Credit Union, McDonnell Douglas-West Federal Credit Union, and Cameron Station Federal Credit Union (where he served as CEO) and senior staff positions at CUNA, NAFCU and NCUA.
Blanchard said that only time will tell, however, if the campaign proves to be effective.
"I can see why Security [Service FCU] is displeased," he said. "But Bellco sees an opportunity as well. The 21st century is a world of competition. It's a hard market. It's a competitive market out there-and it's no different for credit unions."
FOR MORE RESOURCES
For info on this story:
* www.bellco.org
* www.ssfcu.org
* www.newhorizonsccu.org
* www.banklocal
