SAN DIEGO-San Diego County Credit Union has two switch kits-one online and one featuring a concierge service-as it attempts to quickly build solid relationships.
Teresa Halleck, president and CEO of the $5.3-billion CU, said SDCCU believes once new members open accounts, they need to convert their direct deposits, automatic billers and bill- pay payment items as soon as possible.
"Our SwitchAgent service offers a high-touch concierge approach that will contact the member to automatically initiate the transfer of any automatic ACH transactions and/or direct deposits from the member's previous financial institution," she said. "After the account is opened, an agent contacts the member to seamlessly transfer services to the new account."
SDCCU has offered an interactive online feature known as QUICKIT since 2008. Halleck said members opening a new account using its fully automated online membership application can use the forms on the Web to send proper notification to their employer to update their direct deposit information, redirect any automatic ACH payments and send account closure letters to their prior financial institution.
The QUICKIT forms were developed by SDCCU employees. The SwitchAgent offering was developed by one of its business partners, she said.
Payoff From 'Beach Bankers'
San Diego County CU does not look at the account opening time as a limited window to explain itself to the public. Halleck said it "consistently advertises the organization's value proposition" in its markets. As an example, she said it has "strongly urged" big bank customers to consider moving to SDCCU since the early part of this year-long before several banks inflamed the public with debit fee charges.
"We believe many consumers have made the switch to San Diego County Credit Union due to our advertising campaigns highlighting our free checking with e-statements and free debit card services," she declared. "One of our recent advertising campaigns was a 'Beach Bankers' protest which featured picket signs at the beach during Labor Day weekend to tie into our TV commercials, which have for many months featured bankers celebrating their profits and high fees. So, our timing on these initiatives was way ahead of the curve and the edgy ads we created have worked well for us.
Adding Accounts
Asked how SDCCU is turning new members into profitable relationships, Halleck said it has a "robust" account opening package, which includes getting new members to quickly use their debit card, and immediately convert their direct deposits.
In addition, she explained, the cross-sell of "sticky" products such as online bill pay and mobile banking are encouraged at account opening. SDCCU has offered reward certificates of deposit to encourage active checking account relationships and retain them long term.
So why do some bank customers still hesitate to make the switch? According to Halleck, it is a mistaken premise.
"Perceived convenience is a large factor in consumer decision-making when selecting where to bank," she asserted. "We offer tremendous convenience in the San Diego market. We highlight the surcharge-free ATM access at 28,000 CO-OP ATMs in addition to our member-friendly value proposition. In addition to having been voted the best local credit union for the past 12 years, we have great brand recognition in our market which positions the credit union top of mind with many consumers."
As part of its aggressive strategy to increase market penetration, Halleck said SDCCU now has an online application designed to allow a big bank customer to open an account with the credit union in 10 minutes or less, 24/7.
While acknowledging bill pay and mobile banking are "sticky," Halleck said the online application has made it possible for SDCCU to compete with big banks.
"People no longer need to take time off work or stand in a line to do their business at San Diego County Credit Union," she said. "And, we have proactively offered bank customers online help to understand the few simple steps that need to be taken to switch their full banking relationship, including bill pay."
