WASHINGTON–"Live well. Below your means." That is the motto of the Department of Commerce FCU. But when CEO Evan Clark began delivering that message to members four years ago, he had no idea how timely that advice would be today-or how it could potentially drive member retention and growth.
Clark and the CU believed enough in the saying to launch a microsite earlier this year called livewellbelowyourmeans.org. The site is filled with advice, suggestions, articles and tips on how to lead a good life, but be prudent with your finances.
"I think the message has much greater meaning today," offered Clark, who predicts the economy will have a lasting impact on a how a majority of the U.S. population lead their financial lives. "When 401(k)s got hosed and home values dropped, suddenly people realized that they don't have enough money to retire. They realized they have to start saving."
Those reasons, believes Clark, make the $175-million credit union and its website more attractive to consumers and members. "It might be that the whole idea of living well, below your means isn't a novel idea anymore. It's just the way people will live," he said.
Livewellbelowyourmeans.org includes gas saving tips, a savings tip of the month, advice on how to build a better credit report, a host of links to reading materials and other sites about managing money, and a blog. Clark also pens a monthly column.
One of the key points the site makes is that it's "unusual for a financial institution to give advice on how NOT to spend money. But credit unions operate a little differently than other 'money centers.'"
The website, contended Clark, clearly separates the credit union from the large banks and drives member loyalty. "All of what we are sharing on the site is the opposite of what members often hear from the money center banks. It generates trust."
DOCFCU doesn't rely simply on the site to convey its savings message-which Clark reminds has a double meaning (if you remove the period between "well" and "Below") and emphasizes that people must learn to make sacrifices. "Here at the credit union we live well below our means. Our expense ratio is 70 to 80 basis points below our peers, and we realize we can't be adding bricks and mortar at the drop of a hat. We operate this way because we want to give our members as high a return as we can on their deposits and low loan rates."
At press time the credit union was paying 3.7% APY for a 12-month CD. A 30-year fixed-rate mortgage charged 5.78%. A 60-month car loan rate stood at 5%.
Those rates are touted on www.livewellbelowyourmeans.org, as well as a way to join DOCFCU. The site, which was produced by the Virginia-based marketing firm Raoust+Partners for less than $5,000, was launched well before Wall Street collapsed. Clark emphasized that the economy did not drive the concept.
"The website just happens to be much more timely today," he said. "More than anything, it represents our credit union's philosophy, which I believe will have even greater appeal as time goes on."
