RENO, Nev.-Many financial industry experts have spent recent months saying credit unions have an opportunity to grab market share during these troubled times, but public awareness of CUs' strength seems to be lagging-making Great Basin FCU's two-pronged marketing approach a standout.
Meghan Eliopulos, GBFCU's marketing coordinator, said the credit union is emphasizing the safety and soundness of the institution, while at the same time promoting the value of financial education during rough spots.
In order to get Great Basin FCU's commitment to education "out there," she said the credit union recently added more of its well-received workshops, including "Understanding Share Insurance" and "Budgeting Tips & Tools" to its calendar.
Great Basin also decided to officially open up attendance of the workshops to the entire northern Nevada area.
"We are getting out into the community," Eliopulos reported. "Recently we were at one of our preferred employer groups and spoke with about 150 people teaching about share insurance and budgeting. Since education is such an essential core value to Great Basin FCU and credit unions in general, we're really trying to emphasize that we're here to help sort things out in this difficult time."
GBFCU's safety and soundness campaign includes a newspaper ad that highlights the benefits of being a Great Basin FCU member, she continued. "And of course it includes heavy emphasis of our insurance limits that now go up to $500,000; through NCUA and ESI, our private insurance."
Eliopulos said the print ad goes on to point out Great Basin's flexibility, rewarding relationships and uniqueness as a financial institution. "We also are doing a lot of in-branch advertising and offering resources to our members so they feel better about the safety of their money.
"In tandem with this campaign, we're offering a certificate that works with the lives of people in today's world," she continued. "It is flexible and can be withdrawn from at any time, it offers a higher APR, and it can be added to at any time. Our main goal is to really show people that we're here for them and that we're taking steps to help them and their unique lives and situations."
Tony Lopez, Great Basin's vice president and chief financial officer, and Jennifer Denoo, vice president and chief operating officer, told Credit Union Journal there are plenty of obstacles to overcome in the Reno area, thanks to high unemployment and a declining housing market.
CUJ: What are the biggest challenges of running a credit union today?
Lopez: It has been a challenge to balance meeting the needs of our members and the community, at a time when they need us most, with the responsibility to take care of the needs of the credit union. Right now, we're concerned with finding that balance.
Denoo: We are definitely concerned with how we are making changes that impact our membership. This is an especially challenging time as we are facing a high unemployment rate, declining property values and a definite strain on both member and employee confidence.
CUJ: What direct and/or indirect effects is your CU feeling from the housing market?
Denoo: While we have seen some mortgage losses, we are experiencing more indirect effects such as members not being able to pay their car payment, members losing their jobs and a low savings rate. Some members just want to give up everything and start over.
Lopez: Since Nevada has such a services industry-driven economy, we are definitely seeing a lot of indirect effects trickle down and affect consumers of all kinds.
CUJ: Have the failures of IndyMac and WaMu allowed you to gain members and/or deposits?
Lopez: Not really. Neither IndyMac nor WaMu had a huge presence in northern Nevada. The main effect for us has been a significant increase in anxiety and uncertainty for people and their level of interest in the safety of their funds.
CUJ: Are economic conditions in your market still worsening, or have things already hit bottom and are improving?
Denoo: Unfortunately, I don't think that we have hit rock bottom yet. I think our indicator that things are improving will be in the unemployment rate. If people are still losing their jobs, we're still going to see problems within the markets.
Lopez: I think we still have a ways to go. Not until we see some recovery in the small business sector and housing inventory dries up do I think we'll see things improving.
CUJ: How is lending going?
Denoo: While there are still opportunities to lend, we're facing some tighter lending policies and lower demand for consumer loans. There are still people who need loans, though, and we still need to lend to those in need as it is an important part of our credit union identity.
