FRANKENMUTH, Mich.-Frankenmuth Credit Union CEO Vickie Schmitzer is continually focused on implementing industry innovations to attract members of all ages, but especially Millenials.
That focus stems from the credit union's work in the field.
"We work as much as we possibly can with our local public and parochial schools at every grade level," said Schmitzer. "We know they are our credit union's future and that new technology is what attracts them to a financial institution or business of any kind, for that matter," said Schmitzer.
Last year, Frankenmuth CU, along with 19 other credit unions, participated in the SaveUp pilot program that was launched in association with the Filene Research Institute and CU Solutions Group. The program takes a unique approach to promoting account savings through the use of rewards-based gaming tools and social mechanics.
A March report released by Filene found that the average SaveUp user visits the credit union's siste three to five times per week, while 39.5% of users noted an increased awareness of their credit unions' products and services. Nearly all of SaveUp users (95%) believe that their credit union is interested in their financial progress; 35% of SaveUp users were age 25 to 34.
"Our recent data report shows that young people are bearing a disproportionate share of the country's non-asset debt," stated SaveUp CEO Priya Haji. "If credit unions can engage younger Americans to offer them better terms, and longer term financial services, there is a real benefit to all sides."
The $258-million Frankenmuth CU has 25,595 members, 119 employees, 11 standalone branches and four satellite offices, three of which are located in schools and one in a senior living facility. To promote the SaveUp platform, a wide range of initiatives were undertaken.
"It was as easy as adding a link on our website and then promoting via e-mails, Facebook, newsletters, lobby video displays and LED road signs to get the word out," Schmitzer recalled.
David Adams, CEO of CU Solutions Group, which is a unit of the Michigan CU League, explained 40 credit unions are now participating in the program. The way it works is that each time a member contributes to their savings or retirement accounts, pays down credit cards, mortgages or other loans, or engages with SaveUp's financial education content, credits are earned. Not unlike acquiring tickets at an amusement park, these credits can be used for prizes from sponsors that include Virgin America, Banana Republic and GameStop.
"The program is a natural fit with the credit union mission of promoting thrift and responsible borrowing," stated Adams, who said members are also eligible to win a $2-million jackpot. Initially, however, the attractiveness of the prizes was a slight stumbling block for Frankenmuth CU members.
Surprising Finding
"What we found surprising is that it isn't just Gen X or Y that like and play SaveUp. It is individuals from every generation of our credit union, that are tech savvy, that enjoy it," said Schmitzer. "We did have members when we first started promoting SaveUp ask if it was legitimate, because they thought it was just too good to be true."
Schmitzer and her team first focused SaveUp efforts at school branches as a way to get younger members "off on the right foot" when it came to saving habits and paying down debt. Overall, the program has been a success. According to Frankenmuth CU's February SaveUp report, it has 556 current users. Members played 76,345 tickets and110 invites were sent from users through SaveUp to other members. In total, 3,061 profile questions were answered, 701 video quizzes completed and 33 non-credit prizes won. The change in Frankenmuth CU non-debt balances was $454,709.58 and the change in non-Frankenmuth CU balances was $7,169.81.
Improved Savings Habits
"We have experienced improved saving habits, quicker debt pay downs, the use of SaveUp's financial education tools and of course the winning of prizes," said Schmitzer, adding of the program: "Who wouldn't want a $1,000 gift card, or other prizes, delivered to their door?"
Moving forward, Schmitzer said she hopes the program continues to grow attracting members form all demographics. "As for ROI, FCU feels this is one of those fun value added services that we feel makes the members enjoy their interactions and experiences with FCU. We want to get them in young and have a member for life."
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