The home, the road and credit card rewards are some key areas CUs are zeroing in on as spring approaches.
Credit Union Journal talked with CU execs and analysts to see what promos credit unions are thinking about this season, and mortgages — not surprisingly — topped a number of lists.
1. $500 Closing Costs Max
Sharefax CU in Cincinnati is not waiting for the bottom to fall out of the refi market and is emphasizing new originations. This spring the $316 million CU will cap closing costs at $500 plus prepaid interest and taxes, said CEO Arthur Kremer.
The promo will follow a successful 1.99% APR new and used auto offer in February. The CU plans to continue its 2.99% promotion on motorcycles.
2. Moving Out Of Refis
UW CU, Madison, Wis., is another shop focused on new mortgage originations, offering $500 off closing costs.
"As we transition out of a refi environment we want to incent borrowers to finance their next home purchase with us," said Mike Long, executive vice president and chief credit officer at the $1.75 billion credit union. "The effort is being supported by print, web, billboard, branch... We are even running a referral contest for front-line staff to get them talking to members about this great opportunity."
3. Improvements For The Home
FORUM CU's spring focus is home improvement loans, tied to a second mortgage, or through an installment loan or via credit card.
COO Andy Mattingly said the $932 million credit union will not be offering any special offers or teaser rates besides a special credit card rate — which offers 2.99% APR for 12 months depending on the type of home improvement. "We will focus primarily on the fact we have many options for members and that we will work with them to find the right loan for their situation."
The Indianapolis-based FORUM will also promote National CU Youth Week in April with a variety of small activities and specials for student checking and other youth-related accounts.
4. Big Car Loan Sale
With members ready to hit the open road and waterways, Tukwilla, Wash-based BECU has promos planned to capture auto loans and is already offering RV and boat loan deals.
"In late April we will have the BECU Auto Event," said Todd Pietzsch, manager of public relations. "We partner with over 80 local car dealers to have a three-day sale. We use mass media to promote the event and during this time members can receive a reduced interest rate. We are still finalizing the event, but it usually includes a 50-basis-point reduction in the interest rate for qualified purchases."
BECU, which already has a large number of members accessing the CU remotely, will focus even more on electronic delivery, added Pietzsch. "One of the biggest perceptions is that credit unions are not convenient. We just added 138 cash-only ATMs in all Washington State Rite-Aid stores and are promoting this as well as our other electronic delivery channels to our members through a combination of mass media and direct member communication."
5. Rewards Keep CU Top Of Wallet
Tim Kolk, owner of cards consulting firm TRK Advisors in Peterborough, N.H., sees CUs getting creative with rewards as a way to stay top-of-wallet with their card offerings.
"It may not have anything to do with the season, but there is a general recognition that the large issuers are making their programs more attractive — for example, the Quicksilver card from Capital One and the EveryDay Card by Amex."
But Kolk expects, as well, to see the ongoing balance building promotions. "These are pretty much 'procedure' for the successful credit unions by now, and just keeping the wheels turning is more important than sporadic promos."
