RIVERSIDE, Calif.-Credit unions across the country are proactively responding to consumers nervous about the financial marketplace.
Altura CU here, for instance, has put together a multi-prong approach in response to the ongoing financial upheaval that includes everything from creating a new, secondary website specifically dealing with the financial crisis and launching an aggressive marketing and advertising campaign to embarking on a proactive workout loan program with some of its financially troubled members.
"Altura is implementing a number of strategic initiatives to help assure members during this period of economic uncertainty," said Ricki McManuis, SVP-corporate communications for the $915-million credit union.
Indeed, even before Congress started talking about the bailout bill, Altura was looking to soothe members' concerns even as it worked to leverage the bank failures in its market.
"In July, shortly after the IndyMac Bank failure, Altura created a new billboard," McManuis told Credit Union Journal. "It uses Altura's signature sense of humor to convey the message that the credit union offers a safe haven for your money, using the headline 'Your Savings Won't Go Belly Up,' paired with the image of a piggy bank upside down."
Altura also posted a letter from President and CEO Mark Hawkins to members on the its website, provided talking points for branch staff and added a banner to its home page about safety and soundness.
"The messaging focuses on Altura's 50-year history, its local headquarters and its capital strength," she said. "The idea is that we live, work and have fun in the same communities as our members, we understand their needs and we are here to help."
With the passage of the bailout package, Altura added a new item to its website touting the increase to $250,000 in NCUSIF insurance, and a secondary website that will act as "an educational mini-site to talk about Altura's safety," is already in the works to be launched soon. McManuis said in addition to plugging the safety of credit unions, the site will offer members information and tools on savings and debt reduction tips.
"For the past few months, marketing has been emphasizing Altura's safety and soundness, although a full campaign is still in development and is expected to be rolled out before the end of the year," she related. "These materials will focus on the fact that Altura has money to lend for home and auto loans, that we didn't play the subprime lending game and that we are well capitalized. We also will add information about the new insurance limits."
The credit union is also taking a proactive approach to working with members in financial trouble.
"Altura has embarked on an aggressive effort to assist borrowers-both for mortgage loans and auto loans," McManuis offered. "The key is that we don't wait for them to contact us."
According to Donald Carazo, Altura's manager of loan servicing, automatic letters are generated on the fifth and eighth day after non-payment on a loan. If payment is not received by the 10th day, Altura calls the member.
"Often the member has simply forgotten," McManuis suggested. "If, however, the member is experiencing a financial change, such as a job loss, the loan servicing rep will work with the borrower to create a new loan repayment plan. We help the member understand that bankruptcy is not their only option. We are focused on preventing the member from defaulting on the loan and losing their car or home."
The credit union is also considering making some changes to some of its products and services and how they are priced.
Altura said is working on a new Money Market account that offers a preferred rate if the member also has a particular checking account. Details on this product are being finalized with plans to launch before year-end. Patrion Mortgage also is revising its Hybrid ARM Mortgage product, which it plans to roll-out early next year.
"In addition, Altura plans to strongly market Patrion Mortgage to re-emphasize its home loan products," McManuis advised. "We have money to lend and want to remind people that we are in the business of home loans."
The same day Credit Union Journal asked Altura what sort of strategies it was implementing or changing in the face of the financial crisis, the credit union's pricing committee and convened a meeting at which it decided increase share certificate rates on the 6-month, 12-month, 24-month, 36-month, 48-month and 60-month certificate accounts. Last but not least, Altura is beefing up its financial literacy efforts. The credit union hosted a mortgage seminar early in October that drew 75 attendees.
"We are planning to roll-out a new financial literacy program next year. We have purchased a program that includes Power Point presentations, talking points, hand-out materials and more, McManuis told Credit Union Journal. "It will be delivered by branch managers at the branch level to members. The public also will likely be able to attend as well. The program may be offered monthly. Marketing also will be developing financial/educational brochures for members in addition to product-oriented pieces. This is addition to our ongoing financial literacy programs for schools and school-related groups."
