WEST PALM BEACH, Fla. -
Strong Membership Foundation Is Necessary
BIRMINGHAM, Ala.-As individual credit unions and the credit union movement itself grow and mature, more and more people are discovering the advantages of credit union membership. This creates a more diverse field of membership, which represents people from all walks of life. Most elected officials, the media, and the public at large understand that credit unions must have a strong foundation to enable them to fulfill their mission of service to all people. The Alabama Credit Union League, along with CU-Vote, and our Credit Union Ambassadors are very active in making sure that the credit union message of service to all people is heard. In addition to the traditional lobbying and political advocacy efforts, CU-Vote is engaged in a statewide image campaign as well as providing research that shows the benefits of credit union membership in Alabama. Our Ambassadors are credit union leaders with personal relationships with lawmakers, whom they educate about what credit union are and what they do. As Congress and other legislative bodies look to credit unions to help people and small businesses maintain financial freedom, it is more important than ever that we continue our efforts to show how credit unions work every day to serve people from all walks of life.
Insert In Statewide Paper Brings Visibility
LITTLE ROCK, Ark.-In Arkansas, we've tried to foster relationships with our state legislators so they understand credit unions in our state serve their member citizens, some through community connections, some through occupational, associational or religious connections. Our lobbyist devotes many hours to personally contact our legislators, and he has made himself accessible to them for questions or assistance when needed regarding who we serve and how we serve them.
The league and our credit unions do an educational insert in the statewide newspaper every year in conjunction with International Credit Union Day where we highlight the value of membership in a credit union. In addition, our credit unions and our foundation are major contributors to Arkansas Children's Hospital, where we receive recognition on their Wall of Fame and have the sole sponsorship of the hospital's Child Life program.
Public Advocacy Program Educates Masses
RANCHO CUCAMONGA, Calif.-The California and Nevada Leagues believe that framing the discussion on our own terms about credit union service to consumers is the most effective means to counter banker misinformation communicated to the public, media and elected officials. Our League's Public Advocacy Program, created to educate opinion leaders and consumers about credit unions and build support for our issues, delivers targeted messages directly to these important groups that detail the benefits of credit unions for everyone. This strategy has proven effective in gaining acceptance of our talking points, even as comments such as "new breed credit unions" planted by the banking industry are repeated occasionally by media representatives or elected officials.
The 2007 Public Advocacy Program employs separate tactics for delivering our messages to each of these targeted groups. A broad-based media plan uses radio and Internet advertising to drive consumers to a robust new website: www.creditunionswork.org. Media visits build strong contacts and establish credit unions as a solid resource for stories on financial news. Member education activities provide turn-key materials to credit unions for informing and mobilizing our strongest supporters-credit union members-and additional grassroots activities such as strategic advertising in capital publications are directed to elected officials.
Banker Hypocrisy Makes League's Job Easier
ARVADA, Colo.- Frankly, this issue would not be discussed much except for the hypocritical banker campaign to raise the issue in the mind of lawmakers and others.
The media have not paid any attention to the banker's whining, and they understand that credit unions rightly must serve diverse groups of members, starting with the working men and women of America.
The public's perception is on display every day when bank customers flee those high-fee, impersonal institutions to join a credit union.
Most public officials know that credit unions can't be required to conform to the dream of the banker lobbyists - i.e., that we only serve poor people. These officials do ask us to show how we are-where we can-reaching out to people of modest means, but they understand that our efforts would be enhanced by better regulations and legislation and that our job would be much easier if the bankers weren't simultaneously throwing up roadblocks to serving those underserved populations, all the while decrying our ability to do so.
No Single View Of CU Membership Dominates
WALLINGFORD, Conn.-It's frustrating, but perceptions cover the landscape with no one view on whom credit unions should serve dominating. The Connecticut Credit Union Association takes the approach that credit unions should serve as many people as possible - that consumers need more financial options, not fewer, and that credit unions play a key role in offering a very real alternative to banks. That said, CCUA continually works to educate opinion leaders and the public on credit union uniqueness and the commitment to serving people from all walks of life. Projects such as REAL Solutions, financial literacy through a partnership with USA Today, a well-organized grassroots campaign to promote the credit union difference, and continual efforts to tell the "good news" about credit unions in the media are central to our efforts.
'Sizable Disconnect' Calls For More Action
NEW CASTLE, Del.-In Delaware, the League sees a sizeable disconnect between the public, the politicians, and the media regarding credit unions.
Each group holds multiple views or perceptions of whom, what and where credit unions serve. Consumers, in general, think credit unions are advocates for the average working man and woman. The media see them as a business entity trying to survive in economically challenging times and being challenged at every turn. Politicians are beginning to see credit unions as a politically adept and savvy group, but have difficulty defining them.
The public ("the little guys") believe they should have the right to belong to any financial service entity they choose. They worked for it, they earned it, and they believe they should be able to save or borrow where they please. They know a credit union is a good deal but aren't sure they can belong.
The media have run hot and cold on credit unions-generally hot when the story will sell. Still, most of the media ignore the issue as not being worth the effort.
Politicians, however, are charged with developing the law of the land. They are the stewards of the rules governing how we live, work and do business. Having that in mind, they are now struggling to define eligibility to join a credit union. Major issues include how the definition of "modest means" fits into the original credit union charter, why credit unions are restricted to narrowly defined geography and banks can be global, and how to deal with the perception that competition between credit unions and banks seems to be one-sided in favor of banks.
Expanding Presence Helps Get Message Out
TALLAHASSEE, Fla.-Educating the public, the media and Florida policymakers is an ongoing mission of the Florida Credit Union League. The success FCUL has enjoyed is shown by a less intense political pressure on Florida's credit unions than has been faced by other credit unions around the country. When the Florida Legislature took up the issue of revamping the Florida Credit Union Act in 2005, the League, working with the Florida Department of Financial Services, was able to get a unanimous approval vote on the bill. No controversial amendments offered by the banking industry were considered.
Credit unions expanding their geographical areas of service in order to serve the public has also enhanced the perception of credit unions in Florida. Suncoast Schools FCU recently opened a branch in Tampa to directly compete with several payday lenders and pawnshops in the East Tampa area, an area devoid of traditional financial institutions. This was highly publicized in the local media, leaving a favorable impression of credit unions and their desire to serve those of modest means. In short, credit unions in Florida are perceived by the public and politicians as carrying out their mission of offering affordable financial services to the public.
Majority Of Debate Centralized In Washington
DULUTH, Ga.-We believe Georgia residents are aware of how CUs help the average citizen. Georgia credit unions have yet to make a special effort with state legislators to explain the credit union difference.
Most of the debate is in Washington. We don't encounter that question in Georgia. That debate is largely bank initiated and based in Washington.
Consumer finance media programs, such as the Atlanta-based Clark Howard Show on radio, has spread the word that credit unions are available to many, if not, most Georgia residents. The Georgia CU Association will maintain its normal congressional and state contacts and has yet to discuss the issue of credit unions proving how they help the underserved.
In Georgia, the banking industry is sticking to its standard ABA rhetoric regarding CU taxation and getting away from the original CU mission. It's more of an issue of credit unions paying a little more attention to existing outreach programs and formalizing them in response to banker accusations.
'Amiable Relationship' Keeps Attacks At Bay
HONOLULU-Hawaii's 96 credit unions have achieved one of the highest membership penetration rates in the nation, with over 773,000 members from a statewide population of almost 1.3 million. Many Hawaii credit unions, including the three largest, have an occupational or multiple group field of membership. Therefore, the perception of some residents is they may not be eligible to join a credit union. However, the reality is all residents of the state-including but not limited to persons of modest means-are eligible to join at least one credit union, especially since the post-CUMAA expansion of and conversion to countywide community charters.
Fortunately, Hawaii credit unions enjoy a cordial relationship with the banking community. Most banks in Hawaii consider credit unions as valued clients rather than fierce competitors. This amiable relationship has kept banks from putting credit unions on their political radar screen. Hawaii Bankers Association and Hawaii Credit Union League have been collaborating on many legislative issues and on an upcoming identity theft public awareness campaign. By working together on significant matters banks and credit unions can agree, rather than fighting on a few matters of disagreement, considerably more can get accomplished.
Teaming Up With Banks On Fin. Literacy Helps
BOISE, Idaho-Here in Idaho we work cooperatively with many banks on a number of areas, financial education is one example, so we haven't had the battles some of our neighboring state leagues have had. And the local media is favorable to credit unions, but we don't get a lot of coverage either.
League Sets Issue On FIRE In Illinois
NAPERVILLE, Ill.-The Illinois Credit Union League (ICUL) continually educates state and federal lawmakers, the media, and the public in general about the importance of providing consumers with the ability to join a credit union and the important role that credit unions provide in the marketplace to people of modest income. Specifically, ICUL recently worked to amend the Illinois Credit Union Act to allow credit unions to serve members located within low-income investment areas as defined by the U.S. Census Bureau. Additionally, the Illinois Credit Union Foundation encourages credit unions to serve low-income areas through its Financial Independence & Revitalization Effort (FIRE) grant program, which is designed for providing financial literacy education in those areas. Finally, credit unions communicate their efforts through participation in Project Differentiation and maintaining our focus overall on serving low income/underserved areas. All of these activities are constantly reinforced to lawmakers through local grassroots efforts, chapter meetings, candidate interviews, and campaign involvement. This message is also reiterated at ICUL's annual Legislative Day event, which includes Hill visits and is attended by more than 100 credit union activists.
CUs Serve Membership Lawmakers Intended
INDIANAPOLIS-Indiana credit unions are serving the working people and business owners that the legislative history indicates has always been intended. Statistics show that 75 percent of Indiana credit union members have annual family incomes of less than $60,000. Indiana's credit unions serve many underserved and low-income areas. The Indiana League and Indiana's credit unions continue to collaborate on research aimed at further expanding services to low- and moderate-income consumers. We have been proactively carrying our message to Congress about the many lower cost financial services that credit unions provide to all of their members. And, we carry the message through our political advocacy and campaign involvement with candidates like freshman Rep. Brad Ellsworth (D-IN) who defeated an incumbent who was not supportive of credit unions. He is a 25-year credit union member and was the featured speaker at the League's Legislative Affairs Forum in January where he commended credit unions for their commitments to the people in their communities.
Campaign Focuses On Serving Underserved
DES MOINES, Iowa-Iowa credit unions continue to position themselves to serve all working Iowans, including underserved groups such as: low-income, immigrants, rural communities, and small businesses, among others. Each year we develop an Advocacy Campaign that reminds and educates our state legislators and media about credit union issues. This communications campaign includes extensive radio, billboard and print advertising as well as direct mail pieces and online communications. This year, our Advocacy Campaign messages focus on how credit unions are serving the underserved and why credit unions are unique financial institutions. Additionally in 2006, the Iowa Credit Union League developed a "Credit Union Values Campaign" to provide media training, statistics and key talking points for Iowa credit unions that focused on how our industry is serving working Americans as intended by Congress.
In 2005, the Iowa League-in conjunction with two credit unions-formed Community Business Lenders, a for-profit credit union service organization that provides member business lending to small businesses in Iowa. In late 2006, the Iowa League also formed a new subsidiary company called Diverse Innovative Solutions, an economic development firm that assists credit unions in reaching out to underserved and emerging markets. These organizations provide Iowa credit unions with the resources and support to not only better serve all working Iowans, but to position them for sustainable, long-term growth.
KY Puts Emphasis On Cooperative Spirit
LOUISVILLE, Ky.-We've not encountered any type of negative feedback or questions about who credit unions are serving in Kentucky. It's really been business as usual with those three entities. Kentucky is no different from other states when it comes to telling our story. We do emphasize the cooperative spirit as well as our not for profit status. Although not a new story, it is our structure that makes us different. It depends on how credit unions choose to operate around that structure that also makes us different. Credit Unions in Kentucky do a great job in putting the member and the community first.
CUs Demonstrate Commitment To Members
HARAHAN, La.-Credit unions serve groups that share something in common, such as where they live, work, or worship. At the Louisiana Credit Union League, we are committed to helping credit unions in Louisiana communicate the credit union difference to their members, the media, their elected officials, and others. As Anne Cochran, CEO of the Louisiana Credit Union League, explains, "Our credit unions provide exemplary service to their members every day and truly live the philosophy of 'people helping people' through various community activities and outreach projects."
In the past few years, credit unions have refocused attention on how they can best communicate to their members the credit union difference. Through CUNA's Project Differentiation, the Louisiana Credit Union League has assisted our credit unions with the creation of statements emphasizing their unique philosophy and commitment to members. A "Statement of Commitment to Members", which details the credit union difference in an effective manner to members, elected officials, and others, has been created by many Louisiana credit unions. The league has assisted with these efforts through Project Differentiation promotions at our conferences and conventions, as well as an easy-to-use template on our website.
League Commissioned Study On CU Benefits
WESTBROOK, Maine-In Maine, credit unions have a positive public perception about the services we provide and the consumers we serve. We do encounter, however, the argument, primarily from the bank trade associations, in media articles and in conversations with legislators that credit unions are not serving who Congress intended them to serve so they should pay taxes. With term limits in our state Legislature, our primary focus is on educating new legislators and their staffs on the value and benefit that Maine credit unions bring to consumers. To further address this issue, the League commissioned a study by an independent economist that examined the economic benefits of using a credit union. The study found that, in 2005, the economic benefit of using a credit union to Maine consumers was $40 million through better rates, higher dividends and lower and fewer fees. The study further stated that the existence of credit unions in the marketplace also benefits consumers who use other financial institutions because it forces them to offer competitive rates on services. We continue to use this data in a variety of ways to educate and reinforce the benefit that credit unions provide to all consumers.
All Americans Should Enjoy CU Benefits
MARLBOROUGH, Mass.-While there have been a number of groups, primarily made up of for-profit competitors, who have made it their business to attempt to define who it is that credit union should serve history has proven that it is the credit union community that is best able to define and articulate who it is that should enjoy the benefit of not-for-profit cooperative credit. And the simple answer is that all Americans should enjoy that right.
The Massachusetts Credit Union League takes every opportunity to articulate that point of view in public forums be they legislative, public media or academic.
Cooperative Campaign Part Of 3-Tiered Plan
PLYMOUTH, Mich.-Legislative advocacy, the Community Reinvestment Initiative (CRI) and Cooperative Brand Advertising together make up the Michigan Credit Union League's (MCUL) three-pronged approach to promoting a positive legislative and economic climate for credit unions in the state of Michigan. CRI, created in 2004 by the MCUL, plays a particularly key role in this strategy because it was created for the purpose of documenting the good works of credit unions and developing new and innovative programs for credit unions to make an even stronger impact in neighborhoods and communities. Some very unique programs have grown out of CRI, among them, the Career Transition Program (CTP) and the "Just File it!" program. The CTP is a landmark loan program created to assist workers displaced by Michigan's evolving economy garner new employment skills. Some 37 credit unions have committed $40 million to this project. The "Just File it" program is a free tax preparation program that more than 100 credit unions in Michigan are offering to consumers. Through this program, Michigan credit unions helped generate $1.4 million in returns and earned income tax credits for low-income households in 2006. These efforts, along with data that demonstrate how credit unions are serving people of low and middle means, are captured in the CRI Aggregate Report, which is distributed to lawmakers during the CUNA GAC and Michigan GAC.
Active Voice In Politics, Media A Necessity
ST. PAUL, Minn.-Members of the media, elected officials and the general public all have different perceptions of the credit union movement due to their varying backgrounds and level of exposure to financial institutions. Credit union professionals work hard to make inroads with local and national media to aid public perception by providing the credit union "voice" on a variety of issues.
Credit union activists meet with legislators to ensure that the credit union message is heard loud and clear. By and large, members of the Minnesota legislature look favorably on credit unions for their community focus and for providing a viable alternative to predatory banking practices.
Public perception is a bit more difficult to influence, and is one of the movement's greatest challenges. Members of the general public may not know that they are eligible for membership and that credit unions are not-for-profit. That is why Minnesota credit unions advertise cooperatively in an effort to aid in the public understanding of the credit union difference.
It is important to remember that the Minnesota credit union movement was established in 1923 when a postal employee placed an ad in a local paper seeking like-minded individuals interested in an alternative to for-profit banks. Today's credit unions retain the fundamental belief that access to high-quality, low-cost financial services is critical to the health and stability of ordinary Minnesotans.
Credit unions were formed to serve ordinary Minnesotans-working men and women from all walks of life. The perception among our legislators, media and public is that we still fill that role.
Strong Membership Foundation Is Necessary
ST. LOUIS-The public often has a misconception that credit unions ONLY serve people who work for a particular company or belong to a certain profession. Lawmakers receive misinformation from bankers about who credit unions "should" serve. Missouri credit unions are working to pass legislation to clearly define geographic area in our field-of-membership regulation. As part of that effort, Missouri credit unions are educating members and the general public about "The Credit Union Difference." This effort highlights what makes us different and who we serve: all people, including those of modest means. For free, the Missouri Credit Union Association provides credit unions with in-branch displays, statement stuffers, the www.missouricreditunions.org Web site and a DVD featuring real credit union members and employees. Advertisements are being aired on radio stations statewide and during TV newscasts in Jefferson City. However, people play the most important role in setting the record straight about credit unions. Credit unions took their message to state lawmakers for Credit Union Community Day in February, and will return for the MCUA Annual Meeting. By sharing "The Credit Union Difference," we are working to ensure that others have the opportunity to choose a credit union for their financial needs.
CUs Should Be Available To As Many As Possible
OMAHA, Neb.-The Nebraska Credit Union League believes that credit union membership should be available to any consumer who seeks a not-for-profit, cooperative financial service alternative. Nebraskans' percieve credit unions as a source of affordable credit and financial services for the "working class." This perception is fueled by the marketing efforts of credit unions and the league as well as the actual facts of who Nebraska credit unions are serving. There have been lawmakers that ask whether a credit union's field of membership should expand beyond a community (ie: city, town, village). The league and our advocates respond by saying that credit unions are serving the financial needs of their members every day and that there are many Nebraskan's that can benefit from membership and many of them are in underserved areas inside and outside of urban areas.
Actions, Advertising Get CU Message Out
MANCHESTER, N.H.-Through their actions credit unions in New Hampshire have clearly defined who it is that they are meant to serve since the credit union movement began in the Granite State nearly 100 years ago. Lately, through an extensive statewide credit union image advertising campaign the League and its member credit unions invite all of the citizens of New Hampshire to enjoy the benefit of belonging to one of New Hampshire's not for profit, democratically controlled cooperative credit unions.
Statewide Effort To Educate Public Working
HIGHTSTOWN, N.J.-In New Jersey, a good portion of the population is unaware of the benefits, services or mission of a credit union, this includes the media, the public at large, and politicians. However, in the past year, we've been working hard to change this and develop awareness through our statewide Advertising Cooperative campaign. Licensed from the Utah League of Credit Unions, New Jersey's Credit Unions: The Difference YOU! is a multi-faceted ad campaign that strives to educate the public on the mission, vision, values and difference credit unions can, and do, make to all our lives.
The NJCUL Advertising Cooperative had 47 members for 2006, each paying a fair share voluntary contribution, showing their commitment to credit union members and the movement.
Over the next two and a half years, the NJCUL Advertising Cooperative hopes to utilize a mix of TV, Print and Viral marketing to get the word out. The campaign features a bright blue circle with the word "YOU" inside, affectionately known as the "blue YOU dot" and the likeable, friendly character, "Bob the Credit Union Guy." It speaks directly to the consumer, reinforcing that "YOU, the member" is what differentiates credit unions from banks. You own the place, you call the shots and you and your well-being matters most. The ads are viewable at: www.njdifference.com.
Expanding FOM Doesn't Change Philosophy
ALBUQUERQUE, N.M.-The public thinks that credit unions serve only teachers, government workers or other employee groups. We emphasize that credit unions serve many different groups and encourage people to find a credit union that will serve them because of the community they live or work in or through their place of worship or organization they belong to. We direct them to our website for a directory of credit unions in their area and each credit union's field of membership.
Our local media is fairly savvy about credit unions and has a good idea about who they serve and are trying to reach out to. We keep them informed of credit union news via press releases, inviting them to credit union events and also by making sure they receive our monthly e-newsletters.
New Mexico politicians seem concerned that credit unions should only serve the memberships they were originally formed to serve, such as teachers or government employees. We emphasize that credit unions may expand their memberships beyond their original group but still adhere to the original mission of the credit union movement: to provide good, affordable financial products and services to people of modest means who might otherwise use alternative, costly and possibly predatory financial services.
Outreach Programs Stem Misconceptions
LATHAM, N.Y.-In the political and media arena, the primary perception of who credit unions are supposed to serve are individuals in underserved areas. Public opinion sways towards misconceptions that credit unions are hard to join or that they basically serve union members and other defined groups. In New York, we use a variety of outreach programs to continually educate lawmakers, the media and the public about whom and how credit unions serve their members. To address those perceptions, both right and wrong, we have a public website that includes basic information about credit unions, history of the movement, a frequently asked Q&A section, the league's pressroom, and a database to assist individuals looking to identify a credit union they can join. More proactively, the league conducts recurrent face-to-face legislative meetings to lobby on behalf of credit unions; facilitates interactions between legislators, credit union leaders and members; disseminates informational press kits and frequent press releases to media; creates member awareness materials for credit unions; and mounts statewide radio spots and awareness campaigns.
Tackling Predatory Lending Spotlights CUs
GREENSBORO, N.C.-Through the years, the N.C. Credit Union League and its affiliated credit unions have carried a consistent message to lawmakers in Washington and Raleigh: credit unions look out for the interests of working people. This message also abounds in our communications with statewide media.
An example of these efforts is the issue of predatory lending. The state's credit union leaders consistently criticized the payday lending industry, and in many cases created payday lending solutions in order to help their members in hard times. These efforts helped eliminate the payday lending industry in N.C. last year.
At the same time, N.C. credit unions are serving their members where it counts most-the pocketbook! A league-commissioned study found that members save $336 million per year by doing business at their N.C. credit union!
These efforts have not gone unnoticed by the media. The payday lending solutions and study results have been profiled by state and national publications, including the Raleigh News and Observer, the Winston-Salem Journal and USA Today.
The staff of the NC Credit Union League is fortunate to work with such a committed group of credit union industry leaders. Through their efforts, credit unions in the Old North State are perceived to be looking out for the interests of working people.
People Helping People Is Obvious Answer
BISMARCK, N.D.-Over the years there have been questions, concerns, and debates over who credit unions really serve. This question should not be difficult to answer if we remain loyal to our philosophical base of "people helping people."
I think that the reporting of the media skew is the consumers' view of whom we serve in that the facts stated may not always be a total reflection of the overall situation, and this can leave the public feeling uncertain regarding the role and direction of credit unions overall.
Presenting a clear and concise message of the credit union system to our legislators is paramount to our survival. Our successes in the future will be determined by our actions in the present. By having a solid foundation of grassroots efforts and support, education of legislators, media, members, and the public, coupled with our continued dedication to the philosophy of credit unions, we can guide the media and public to a clear understanding of who we serve.
Vital Role Is To Serve All Consumers In Need
DUBLIN, Ohio-Some policymakers believe credit unions are niche players that should serve ONLY people of modest means and very small businesses that banks won't serve. Our position: credit unions have a vital role in serving all consumers and businesses, regardless of income or size. For seven decades, Ohio credit unions have fulfilled their mission of service to working Americans, a fact verified by two recent studies. NCUA and the GAO report that credit unions are serving those whom Congress has always intended: middle-income, working Americans seeking to improve their lives but who live largely from paycheck to paycheck.
The Ohio League is focusing on policymakers who affect the environment for credit union growth. In 2006, OCUL launched a major offensive strategy to educate lawmakers about the value of credit unions to their constituents and communities. Independent research shows that our new messages emphasizing that CUs help average Ohioans get ahead resonate with legislators. We will reinforce those perceptions in marketing materials, and in-district, Statehouse, and Congressional visits.
Key Contacts, our grassroots advocates, are building relationships locally with state and federal legislators. In 2007, we will educate business reporters and editors about credit unions through a financial issues seminar, and reach consumers through a statewide financial education campaign utilizing the media. Financial education showcases the credit union difference and creates opportunities to get the governor and other elected officials involved.
CU House Will Be New Advocacy Outlet
TULSA, Okla.-When we get questions from reporters, politicians, etc. about who credit unions in Oklahoma serve, our response, is "We serve Oklahomans just like you-in fact, nearly one million of them!" We serve Oklahomans from all walks of life and in all stages of their lives, from their first account to their last and all the moments in between. We encourage people to visit www.CreditUnionsCare.com to learn more and we run a series of advocacy ads on TV, radio, in print and on billboards to reinforce this message. We share stories with them about how credit unions are helping our soldiers serving our country, how they are providing credit counseling to their members to improve their credit and their financial stability and many more. We recently broke ground on Oklahoma Credit Union House that will strengthen our advocacy and political efforts, provide a joint event facility for credit unions to utilize, a centralized location for education and training sessions, and be a visible reminder to the State of Oklahoma that credit unions work collectively to be a viable financial service provider because our House is owned by a collection of our credit unions.
By building a prominent, visible location in Oklahoma City, the League's staff and volunteers will be able to better work with the state legislature and keep us "top of mind" when it comes to financial issues at the state capitol and to our governing body, the state banking commission. By being present in a more visible way, we become players rather than spectators. And that will help us do more for consumers, just like you.
Issue Of Choice Stikes Chord With Consumers
BEAVERTON, Ore.-Here in Oregon, our residents have always been vocal about wanting a choice of financial institutions, especially when that choice is threatened. In times of political battles, members from all walks of life, in all income levels, helped us defend the credit union's unique structure. In general, credit unions are viewed as good alternatives to banks, but there are still preconceived ideas about membership eligibility and services offered. Through our statewide awareness campaign, we are spreading the message that "You Belong" to a credit union.
For the media, the primary message is that credit unions are just as much a source for financial news as are banks. For the public, we want to show that regardless of where you work or live, membership to a credit union is an option.
We also emphasize our not for profit structure, the benefits of being a member/owner versus just a customer, and the community investment aspect (both monetary and community outreach).
Among our legislature, we are working to raise the awareness of the Credit Union Movement overall, and show the unified strength that can be brought to support political initiatives that may affect credit unions.
Statewide Campaign Set To Launch In July
HARRISBURG, Penn.-While there may be many perceptions and misperceptions about credit unions in the media, with elected officials, and in the general public, one thing that has become clear in Pennsylvania is that many consumers simply do not know what a credit union is or that they can belong. In response, last August the Pennsylvania Credit Union Association's Board of Directors, acting on the recommendation of a group of distinguished Pennsylvania credit union CEO's, initiated an 18-month, $2.25 million, statewide advocacy/marketing campaign that will begin in July 2007 and run through 2008.
This campaign is designed to build public awareness of credit unions and to spur membership growth, a number that has remained flat in Pennsylvania over the past five years. This initiative will be one of our association's top priorities this year along with fending off banker attacks (Pennsylvania now has eight credit unions engaged in litigation in various federal and state courts, and regulatory agencies)-all while continuing to provide our member credit unions with legislative, regulatory and political advocacy; timely information on key issues facing credit union leaders; regulatory and compliance assistance; enhanced professional training and networking opportunities; and a whole host of strategic products and services to help our credit unions compete in a very challenging marketplace.
In Pennsylvania, and all states, regardless of perception, credit unions exist to serve their members. As their trade association, it is our job to help position our member credit unions to do just that.
Every Citizen Welcome To Join CU In R.I.
WARWICK, R.I.-The credit unions of Rhode Island a financial resource available to people from all walks of life. Every Rhode Island citizen is welcome to do business at a credit union in the Ocean State. To reinforce the idea that credit unions are for everyone, last year the league undertook a statewide television credit union image advertising campaign.
Key Is In Maintaining Positive Perception
IRMO, S.C.-Perception of Palmetto State credit unions' service is positive but in need of maintenance. Though the media voice very little criticism, the league and CUs must proactively improve the neutral environment. A state bill to restrict payday lending is our ideal opportunity to illustrate the necessity of consumer choice.
Our best estimate of consumers' attitude is moderate acceptance. Members appreciate credit unions, but at least as many non-members may still think credit unions are restricted or their services limited. An annual cooperative media campaign has not included measurement of impact, and an expansion of the program is under review.
At the State House, many legislators can name constituents rescued from dire situations by their credit unions, and our position on consumer-focused legislation is appreciated. In Washington, though, banker activity has cast some doubt. Only one in our current delegation has historically questioned credit unions, but recently others have used phrases like "as long as you don't get too large," and "keep doing what you have been and you'll be fine." That change is precisely the reason we make at least three trips annually to Washington, and why credit unions' messages and good works must be clearer than ever.
Whom Do CUs Serve? Everyone They May
Editor's Note: This is an excerpt from the full response from Tennessee CU League CEO Tom Gaines. The unabridged version can be found in the opinion section on page 57.
CHATTANOOGA, Tenn.-In terms of the general public, there has not been a significant concern. It tends to be personal and local. With understandable pride, they talk about when the credit union helped them, the deal they just got, and what it is doing for all members. We certainly encourage and reinforce those perspectives. It is the insiders, volunteers and senior staff who are aware of the issues. They are generally frustrated at the lack of apparent recognition of the effort, programs and general outreach designed for all segments of the membership. The media and politicians get hung up on the buzz, "what about those of modest means, what are you doing for them?" To this we respond with a variation of the signature concept; our credit unions and those across the country are doing the job for which they were chartered, serving all those they can, their members. We welcome opportunities to further expand service to others in underserved, low-income and modest-means neighborhoods. It is not credit unions that have required legislative mandates to meet their complete, service obligations. We have actually been restrained from expanding service to low, moderate and underserved areas.
Bank Duplicity Shines Light On CU Difference
SALT LAKE CITY-We have a high number of per capita membership and they love their credit union membership. Obviously they believe their CU is supposed to serve them. Utah bankers, however, seem to have no problem claiming we "don't serve the poor anymore" while simultaneously suing to remove the ability of a whole class of credit unions to reach out to people of modest means. It's pretty easy to shine light on such duplicitous messages with both the media and policy makers.
Highlight How CUs Save All W.V. Consumers Money
PARKERSBURG, W.V.-In West Virginia, people often associate credit unions with a single employer since many were chartered in that fashion many years ago. Others associate credit unions as having a smaller scope of operations, which is a logical conclusion since the West Virginia League's median size credit union is around $7 million in asset size. What many fail to realize is that many credit unions provide a full range of services often at lower cost to the consumer which in turns saves them money. On the other end of spectrum, non-members may assume (from an exterior view) that full service credit unions act similar to the local community bank. We in the credit union movement know this isn't true, but it is up to us at the league to change any misperceptions about the way credit unions are governed and how they operate. Through regular contact with lawmakers, civic and community leaders, the league has been regularly educating them through various channels about the credit union difference. One could liken this task to running a "marathon" instead of a "sprint."
CUs Are Designed To Help Different Constituents
PEWAUKEE, Wis.-One perception-propagated by banks - is that credit unions' mission is to serve only people of "modest means." The problem with banks' use of the terms "small" or "modest" means is the implication that credit unions should serve only the poor-low-wealth individuals with limited incomes. Historically, that is neither who credit unions were formed to serve nor the people they have continued to serve.
Credit unions were first formed in Europe to serve those whose borrowing needs were not being met by usurious lenders-to extend affordable credit to working farmers. The concept of owning one's financial institution to retain a voice in how services are priced and delivered made sense to the workers struggling through the Depression of the 1930s.
Company-sponsored credit unions sprang up in droves, rendering a majority of their members working folks with incomes at just about every level. But credit unions still appeal to these workers because their "average" borrowing needs are overlooked by banks and often capitalized on by predatory, storefront lenders.
Throughout history, the theme has remained constant: through democratic ownership of a financial institution whose purpose is to serve members of all means, not make profits, people have retained access to affordable financial services.
