ROSEVILLE, Mich.-Credit unions have come to recognize that life changes, such as young adults moving on to college or marriage, are opportunities to attract new members inexpensively. But few have developed programs to effectively leverage that knowledge.
Christian Financial Credit Union is the exception to the rule.
The $235-million credit union has attracted more than 140 new members-many college age-over the last year from its "Make a Gift Deposit" program, which allows people to deposit money into members' accounts via the CU's website. The service functions like a "registry type of service," according to Lauren Vance, marketing manager for Christian Financial, who added that money is the only thing people can give as a gift. In addition to graduation and marriage, the program is also available for charitable functions and children's savings accounts.
Vance got the idea for the program when Fiserv introduced its Pay-a-Member electronic deposit service to allow small businesses to collect payments online. "Immediately I saw that their product could be adapted to support a gift deposit program," Vance said.
She contacted Fiserv, which liked the idea, made some functionality adjustments to its Pay-a-Member software to allow it to operate more like a gift registry, and now also offers the gift service to other Fiserv clients, Vance told Credit Union Journal. The software changes didn't cost the credit union anything, and Make a Gift now comes as part of CFCU's online banking service that's provided by Fiserv.
Vance says that Make a Gift has been most attractive to college students. "That's been the most popular of the gift programs. I think older people have a slight problem with just being able to give cash as a gift. They think it's a little tacky. But the parents and kids totally get it and they love the online aspect. We've picked up a lot of younger members through this."
The Campus Cash college gift program can be used for high school and college graduations, or just as a means to deposit funds for students who need money during the school year. Wedding Registry, YourCause Charitable Donation Account, and myfirst Account round out Make a Gift's stable of services, which Vance expects will eventually expand. The services are available to existing members, as well.
You have to be a member of the credit union to be a gift recipient, which CFCU uses as the hook to attract new members. Individuals do not have to be CU members to deposit through Make a Gift, and can go online through the credit union's site to make the ACH transfer. A special account code is needed, and that information can be delivered via a customized message card that's printable through Make a Gift, or delivered via e-mail.
CFCU has spent about $3,500 so far to promote Make a Gift, paying $300 to $400 for booth space at bridal shows and $150 each time it attends a college campus event.
"It's pretty low cost," said Vance. "The only other expense is my staff's time. Typically we will have two to three people at each event handing out brochures on the gift program and other credit union services."
Members who use the service are charged a one-time $10 setup fee. The program is free for those using Campus Cash, as it's part of the credit union's college banking package that includes a checking account, online banking, and a Visa debit or credit card.
"That's another way we can deliver financial services to new members," Vance said. "Not only do they get Campus Cash, they get other services too."
For info: www.fiserv.com.
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Christian Financial CU, Roseville, Mich.
Category: Member Enrollment
Provider: Fiserv
