COLUMBUS, Ohio-Credit unions are busy washing off the welcome mat for bank customers who may be put off by a new wave of bank fees.
Among the campaigns and promotions:
• For the second year in a row, CUs that are part of the Central Ohio Chapter of Credit Unions are staging a "Bump Your Bank" campaign that includes media messages and prizes. "Bump Your Bank" magnets are available for member vehicles and those cars bearing the message can win a weekly prize and qualify for the big cash prize of $1,000.
To win a prize requires registering at www.bumpyourbank.com. Credit union "spotters" are looking for the magnets in the participating CUs' market areas. Participating credit unions include: Central Ohio Community CU, CME FCU, Credit Union of Ohio, KEMBA Financial CU, Marysville Goodyear EFCU, Members First CU, Ohio HealthCare FCU, SMART FCU, STE Credit Union, State Highway Patrol FCU, and Total Assurance FCU.
Non-members are eligible to win.
In Totowa, N.J., North Jersey FCU said that in the wake of Bank of America's announcement it would begin charging $5 per month for debit card usage, that the move "represents yet another opportunity for North Jersey Federal to increase its membership due to mounting consumer and business disappointment with big banks."
To date in 2011, the $197-million NJFCU said it has seen more than 4,000 new members as part of an "aggressive marketing" strategy that has included drawing comparisons between their fees and loan rates, with those of the larger banks providing the same services and products."
• Arkansas Federal Credit Union, Jacksonville, Ark., has made a three-year minimum pledge to its members that it will not charge for checking or debit cards. It made the public announcement in response to the numerous pricing changes announced by banks, most notably Bank of America's Bank of America's $5 per month debit card fee. "As long as I'm in charge, no Arkansas Federal member will pay a monthly fee to use our debit card," said Larry Biernacki, president and CEO of the $825-million AFCU.
• CEFCU, Peoria, Ill., has rolled out "Dividend Checking." "The new Dividend Checking provides current CEFCU members the convenience of using their existing Checking account number and Check+ Debit Card while earning dividends," the credit union said. "Dividends will be paid on a tiered-rate system based on average daily balances of $2,500, $5,000, and $10,000."
• In St. Petersburg, Fla., PSCU Financial Services issued a set of "best practices suggestions" designed to help "win consumers who are not willing to pay new fees being assessed by their banks."
Among the tips: 1) Launch direct mail campaigns that target non-members and members who do not have a credit union checking account. "The added issue of free vs. fee will draw attention to your credit union. Plan to conduct several marketing campaigns a year that not only differentiate your credit union from the big banks, but also position your offerings as the most consumer-friendly." 2) Develop a multi-channel marketing approach. Free checking needs to be actively promoted on the website, in newsletters, and more. Develop a product comparison chart that outlines the benefits of your checking account when compared to other local or national accounts, the company said. 3) Offer several different types of checking accounts, but keep your checking products simple and easy to understand. 4) Offer multiple ways for members and non-members to open accounts.
Setting The Record Straight
• CO-OP Financial Services, Rancho Cucamonga, Calif., reminded that one often-made bank claim doesn't hold water. "With banks announcing more fees and tougher fee exemptions, they have partially tried to justify these measures by emphasizing the scope of their ATM and branch networks," said Stan Hollen, president/CEO of CO-OP Financial Services. "However, credit unions cooperate with each other in a way banks will not, so credit unions can offer the same level of convenience, along with service that survey after survey confirms is superior..."
CO-OP cited its network of 28,000 surcharge-free ATMs and shared branches as services credit unions need to market.
In Suitland, Md., Andrews FCU reported it had received more than 400 postings on its Facebook page in response to an announcement it doesn't charge for debit cards.
• CUNA Mutual Chief Economist Dave Colby observed, "Consumers may be switching their business to CUs for lower fees. Why not encourage them to bring their loans along as well?"
• In Washington, Library of Congress FCU asked on its website, "Sick Of Your Bank's Fees? Why pay a Fee just for having a checking account Debit Card?" Visitors are then taken to a site that urges visitors to "Dare to Compare Our Free Checking." The site includes a chart comparing Library of Congress FCU with four banks (see above).
