FAIRFAX, Va. - Rising gas prices are having an effect on some credit unions, whether it be branch traffic or what members are seeking when they are in those branches.
“Apple’s branch traffic has gone down, but I can’t say for sure as to whether or not it is due to the gas prices,” said Cynthia McAree, vice president of marketing for Apple Federal Credit Union here.
But just in case gas prices are the reason for Apple’s FCU’s lessening branch traffic, the credit union is investing in better remote training capabilities so that its staff and members can learn about Apple FCU products and services–through webinars–without having to leave their home or office, McAree said.
The credit union also recently launched a new deposit product–eDeposit–in which members can make deposits online and receive immediate credit and mail the check in later. “Of course we offer online loan applications–including mortgages–and new account opening, which are gas-friendly options that would impact member traffic into our branches,” McAree said. “From a marketing staff incentive perspective, gas cards as incentives have been winners for us.”
Kelli Mason, vice president of sales and service for GFA Federal Credit Union in Gardner, Mass., said the effect of rising gas prices hasn’t been seen in any decline in branch traffic but has manifested itself in member behavior. “The (gas) prices have led to an increase in automobile loans as members look to purchase a more fuel-economical vehicle and/or lower monthly payments,” Mason said. “Additionally we are beginning to see–although small at this time–members looking for small, short-term loans for fuel.”
In response, GFA FCU has developed small, short-term loans that can act as a bridge for members in need of assistance. “Due to the current economic climate, we have also been discussing the idea of taking some of our community contribution funds allocated in the budget and using them for giving back to our members in the form of gas an grocery cards,” Mason told Credit Union Journal. “We are also exploring using those funds to offer fuel loans at below-market rates.”
In Saginaw, Mich., Catholic FCU reported branch traffic remained consistent, but what members are talking about when they visit has changed. “We are definitely hearing member complaints about it and how they are not planning on traveling as far this summer–less traffic up north to their cottages,” said Bethany Dutcher, VP, marketing. “The biggest item I have seen is members who are selling their trucks and getting cars with better gas mileage.”(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
