WEST LAFAYETTE, Ind.-Strategies put in place in recent years by Purdue Employees FCU here to prepare for economic distress are now paying off, the credit union reported.
"Because we chose to invest our members' money in loans for our members primarily, we don't have the same institutional risks that other institutions are facing," said Kristy Robb, marketing manager. "And, because we chose to make loans to our members who tend to pay us back regularly, we don't see the losses that other banks are seeing as well."
As a result, the 56,000-member CU has not changed its product offerings or pricing in response to what is going on the economy.
"However, PEFCU's membership is certainly not immune to what is happening," Robb said. "We have put many strategies in place over the last several years to prepare us for the current economic conditions and the issues are members are facing."
One of these strategies provides for two full-time credit counselors on staff to assist members through any financial hardships they may be experiencing, assistance PEFCU has provided since 2001.
The only change the $503-million CU has made to its marketing message is to communicate its stability amid the current economic conditions.
"Actually our local economy is fairing pretty well, but it's hard to compete with national media and their portrayal of a national crisis," Robb explained. "We added additional NCUA signage to our branches and included insurance links and information on our website and within our September statements. Our CEO sent communication to our entire staff and we implemented some quick training on insurance information, while also adding NCUA brochures in our branches. In October, we are utilizing CUNA's ad template about the NCUA insurance coverage increase for ads in our local newspaper.
"Although we have not changed our marketing strategies or messages, PEFCU's mortgage department has been performing very well, despite the negative press regarding mortgage lending," Robb added. "We have consistently promoted the credit union as a safe place for all lending needs, as well as doing what is right for the member."
The CU also recently hosted a town hall meeting for its members to explain how and why PEFCU remains strong amid failures of other financial institutions.
