SAN LUIS OBISPO, Calif.-Bank Transfer Day was a mixed bag for small credit unions in the Golden State, as most did not have the resources to launch marketing campaigns.
Suzanne Leedale, president and CEO of $32.6-million SLO CU, here, said she made a decision not to advertise in advance of Nov. 5, "because we wanted to see what Bank Transfer Day would do without additional advertising."
"We are not in a big metropolitan area, so there are not many financial institutions open on Saturday," she said. "I was in the office to answer calls and open any accounts. We opened zero accounts, but I answered a lot of questions."
Leedale noted SLO CU enjoyed "significant improvement" in October thanks to the attention credit unions have enjoyed. In September it opened 1.65 new accounts per week; in October that figure jumped to 3.5 new accounts per week, "which is pretty big results," she assessed.
"We are continuing the momentum [on Nov. 7 and 8] and are getting a lot more inquiries about credit union membership," she said. "On the existing member side of things, where some may have just had a savings account with us we are making improvements. We opened 1.1 checking accounts per week from January to September, but in October we opened 2.5 new checking accounts per week. We are gaining more of our members' wallet share in addition to getting more new members through the door."
SLO CU will continue with its social media campaign, which promotes its services at a low cost, Leedale said. "We sent a press release to the local media about Bank Transfer Day to create top-of-mind awareness for credit unions."
'Long Talk' With Members
Melia Keller, CEO of $24-million, 5,700-member Mid Cities CU, Compton, Calif., said the effect of Bank Transfer Day was felt in advance, rather than on the actual day.
"We opened up seven or eight memberships leading up to the date, which was more impact," she reported. "We were open for a half day on Saturday and added three memberships on Bank Transfer Day."
Keller said she and her staff had a "long talk" with all of the CU's new members and set them up with checking accounts "so they aren't just a savings account member."
"We explained the difference between credit unions and banks and talked about our loan products," she said. "The three that signed up said they would bring in the rest of their families. I think large credit unions got helped more, from what I heard, whereas we needed to advertise to get a response."
John Meeks, CEO of $15.2-million San Gabriel Valley Postal CU, Covina, Calif., said his credit union added four new accounts on Bank Transfer Day.
"That wasn't much, but we have been on the incline for new membership since February or March," he said. "Our numbers have increased all year. For many small credit unions our membership reach is limited, but all the positive publicity is good."
The 'Real Story'
Eric Bruen, president and CEO of $21.5-million Desert Valleys FCU, Ridgecrest, Calif., also saw very little activity on Bank Transfer Day itself, but quickly added, "We need to proclaim that October 2011 was by far one of the best overall months credit unions have seen since 2008."
"There were many positives for Desert Valleys in October, including more than 60 new accounts in the month," he said. "That number might seem small at many credit unions but it is noticeable for a small credit union. We had $200,000 in new loan growth."
According to Bruen, the "real story" goes far beyond the numbers that may or may not have been recorded on Nov. 5.
"What is important is the consumer awareness of credit unions has skyrocketed," he declared. "I have been working for credit unions for 14 years and I have never experienced as much positive feedback from people. The age of awareness was the big motivator as people suddenly seemed to gain a broader awareness of what credit unions are. I believe this was much more predominant in more urban areas rather than the rural area we operate in based on the fact that eight out of 10 community members are already a member of one of the three credit unions in the area."
