BIRMINGHAM, Ala.-With banks still on their heels in 2010, Dennis Dollar says it's time to hit them where it really hurts-in their checking accounts.
"I think driving growth in 2010 is a tremendous opportunity because the banks are at a low ebb of credibility," said the Dollar Associates principal. "There is a lot of business to be taken now, and I am convinced the account most up for grabs is checking."
That would lead to credit unions obtaining more lasting business, other than the glut of CDs that came their way in 2009, Dollar said. "Checking is the primary account that people have and use most often, and it is the one they are most frustrated about when their banks closes, sells out, or is merged. Now is the time to get them to move while they are dissatisfied," concluded Dollar, who said that is the leverage credit unions need to pry away a sticky account.
It's still going to take some work, advised Dollar, who recommended offering the "most innovative checking account promotions possible. You are still going to need a wow factor to get someone to move."
Dollar reminded that it is worth the effort. "Just as it is difficult to get people to move their checking account to you, it is just as hard to get them to move away. You are building loyalty."
Besides possibly adding long-term members and driving fee income, Dollar said offering a consumer-conscious checking account is great PR. "As credit unions fall under greater scrutiny and are asked what they are doing to support persons of modest means, the best answer isn't a 3% CD," Dollar concluded. "Most persons of modest means don't have enough money to put into a CD. But they have a checking account."
