DES MOINES, Iowa-Credit unions have to do a better job emphasizing to consumers that they are a much larger part of the community than the big banks.
Jeff Russell, senior advisor for The Members Group, said to capture more business from consumers they should employ a hyper-local strategy. "They need to find ways this year to create more relevance with consumers to significantly impact growth, especially groups they do not normally reach to a great extent, such as the youth, Hispanic, and small business segments."
Credit unions need to play to the growing desire by consumers to do business within their towns, Russell said. "More people are saying I want to eat at a locally owned restaurant, eat food grown close to home..."
Russell insisted credit unions must play up the fact their employees live and work locally. "Emphasize that your lending decisions are made at the branch, not off in some major city where they don't understand the needs of the community. Talk about how your employees' kids play soccer on the same teams with members' children. Get more involved in the community."
That type of marketing can bring the best, and most cost-effective, returns, Russell said, especially with Bank Transfer Day stirring up more anti-bank sentiment. "You have to create relevance within the minds of consumers who are looking to move their financial relationship, and they don't want to work with financial institutions that make decisions hundreds of miles away from where they live."
