SACRAMENTO, Calif.-In the last four months of 2011, $7.4-billion The Golden 1 Credit Union saw its monthly average new members numbers increase 75%.
While the hoopla around Bank Transfer Day helped, The Golden 1 also implemented two technology initiatives in Q4 2011 that have driven traffic, including new mobile banking apps for iPhone, Android and BlackBerry. Within the first 45 days, 65,000 users enrolled. At the same time, Golden 1 became among the first in its service area to launch mobile deposits.
President & CEO Donna Bland told Credit Union Journal using technology to expand members' self-service options is an important part of its growth plan. She said rather than being concerned solely with onboarding new members, the strategy encompasses a more global outlook.
"Our focus is on deepening the relationship with every member, even members that have been with the credit union for a long time," she said. "As people pay off loans, we need to continue the relationship. People's expectations consistently rise, so we need to expose them to all of our products and services so they can identify the ones that meet their needs."
In addition to the mobile banking and mobile deposit platforms, Bland said Golden 1 is piloting envelope-free ATMs and has introduced text alerts for members to monitor if their checking balance falls below a threshold they have chosen.
Since November, 12,000 members have downloaded the mobile deposit app, with an average of 500 mobile deposits made each day, including Saturday and Sunday. In the first five days of January more than $1 million was deposited through the mobile deposit app.
The Real Key
Although there are differences in the manner credit unions and banks are structured, Bland said the message she wants to get across to consumers is Golden 1 provides, "the same, if not better, solutions to their needs."
"We explain the difference, but the key is value-priced services," she said. "During the time Bank Transfer Day was approaching, we worked with the media in our area to explain the difference between banks and credit unions, and the media helped us explain the difference."
Golden 1 has hosted focus groups to discover why people still think they cannot join the credit union. Bland said the lesson learned was it needs to market not only its products, but also the fact membership is open-it has a community charter in 34 of the 58 counties it serves.
"We constantly promote our convenience through 28,000 CO-OP ATMs in addition to our 84 branches," she said.
A differentiator for Golden 1 from banks is its community focus, Bland asserted, noting it has community outreach programs in all the areas where it has branches. She said the goal is to provide "a local, community feel while providing all the convenience of a mega bank."
Recent studies have suggested adding new members is costly for credit unions, especially given the practice of "free" checking. But Bland said free checking-and the accompanying debit cards-remains the focus of Golden 1's onboarding efforts.
"Most people are looking for free checking, and we want them started on direct deposit, online banking, bill payment and e-statements. We get them integrated into the credit union," she said. "We follow up with campaigns to consolidate their accounts at Golden 1, such as balance transfers for credit cards."
Because a checking account also means a debit card, Bland said the income generated when the cards are used helps offset the costs.
"Most consumers use debit cards for purchases," she said. "Checking account members are active members, and we have more opportunities to interact with them and cross-sell loans and other services. As a large organization we have efficiencies of scale when it comes to managing our checking accounts.
"Checking is the lowest cost-of-funds product we have, and we have the structure in place to support it," she added.
Strong Q4 Lending
In 2011 Golden 1 had an ROA of 87 basis points, even after the impact of the NCUA share insurance premium. Bland said prior to the premium ROA was 1.08%. Its net worth ratio "remained strong" at 10.5%.
Lending was "very good" during the fourth quarter, Bland said, noting the uptick was a continuation of the improvement that was seen in prior quarters. She said a rise in consumer confidence is helping, despite the fact the CU's market continues to see depressed real estate values. Golden 1 is "constantly promoting" its 2.99% auto loans, she said, including working with dealers so they understand what the CU offers.
"We are well situated for 2012," she declared.
