Verity Credit Union has teamed with a western network of merchants and restaurants to expand member service and its debit card service.
Verity had already been using the Passport Unlimited restaurant program and based on its success, decided to expand into the Passport Lifestyles option to offer retail products from hardware stores, coffee shops, gas stations or wineries.
Verity CU VP and CMO Shari Storm said the Lifestyles on Debit program has three benefits: members have a discrete way to use coupons at thousands of merchants; Seattle and Tacoma area businesses have access to thousands of member checking accounts at VCU; and Verity CU gains deposit balances and interchange fees from the increase in debit card usage. The point is to get members to reach for the Verity card first "When you go to use your card, you use our card," she said.
Storm said the debit card program is essentially a "revolving" modern day coupon. Some members are more likely to use their card as they feel there is still a stigma attached to coupons. Combining the Passport logo with the Verity CU debit card makes it easier for those members to use wherever they choose. Storm said VCU members can even get their discounts by simply showing the participating merchant or restaurant their debit card. For example, VCU officials cite one restaurant that offered a second entr?e for free with proof of the Lifestyle program. Storm members can even get a special deal for an addition to the warranty at a local Honda dealership when they buy a new car.
"If you show your debit card, you get the deal. You don't have to use the debit card," she said.
Since its September launch this year, Verity has seen a 19% increase in checking over an eight-month period, a significant jump with fierce local competition from Washington Mutual, she said. Storm said WaMu, which started its business life in Seattle, hit VCU hard with its free checking for life program, drawing members away from the credit union.
"This was a means for our staff to be proud of our checking account," she said.
Storm said members have been very pleased with the Passport Lifestyles debit card with many asking to be given a new card with the logo. Storm said VCU had made 5,000 of the new cards, all of which are already gone, issued to members.
Verity CU had only begun planning for the new debit card program in June 2006 and helped to differentiate it from the competition, Storm said. She also said it would be simple for any western credit union to launch the Passport programs, adding that the Seattle-Tacoma market was already familiar with the concept.
"It really didn't take long. All you have to do is redesign your plastic," she said. "It's very unique. I haven't see this in the marketplace."
