MANHATTAN, Kan.-Many credit unions are seeing a rush of new members joining because of fees from the big banks, but not all.
Instead, said Angie Reed, marketing/business development manager at Kansas State University FCU here, the credit union has been getting plenty of phone calls from members about whether or not it plans to start charging fees similar to the big banks. Those calls, however, are not the same as new member sign-ups.
"There's no BofA around here, so if a consumer is using Bank of America, they're doing long-distance banking," said Reed, adding, "There's no Wells Fargo here, either. We kind of live in a bubble, because Manhattan is down in a valley. You have to get 15 miles off the interstate to even get to Manhattan."
The $50-million, 8,700-member credit union holds a three-county charter to serve anyone in Riley, Geary and Pottawatomie Counties, including Kansas State University and armed service members at Fort Riley. About 65% of the CU's membership comes from the university.
The big challenge for KSU FCU, Reed noted, is that the populations at the college and military base constantly recycle themselves every few years.
As a result, the credit union recently notified members via a letter that it is exploring a name change, in part because the current moniker "presents a barrier to people who believe they can't join our credit union because of name confusion and that it hints of exclusivity."
Still, KSU FCU's assets have grown by more than $20 million in the last three years, and it is focusing on its "Refer-A-Friend" program and an auto-recapture initiative that began in early October. As of its September 2011 Call Report, the credit union had 3,476 loans and leases on its books totaling $31.9 million. That number includes 1,582 auto loans totaling $15.6 million.
The credit union received its three-county charter a little over three years ago, and Reed said that its prevailing message continues to "that we can help anybody in that three-county area."
KSUFCU has also established a target market of women between the age of 25 and 44. (Credit Union Journal recently reported on a similar plan from Seattle's Verity CU; "Marketing-To-Mothers Strategy Has New Piece," Oct. 17, 2011).
