SAN ANTONIO-Even though budgets remain tight, credit unions must open the marketing purse strings or they will miss big growth opportunities in 2012.
Cory Jefferies, VP of business development for SWBC, urged CUs to spend the marketing dollars this year to attract members dissatisfied with their bank and to gain a greater share of the new auto loan market.
"To some degree credit unions missed an opportunity with auto lending in 2011. The growth was there," said Jefferies. "Car sales were up 20% to 30% with all domestic manufacturers. The loans were available, but unfortunately credit unions were getting a smaller percentage. All of the other lenders were up in new car loans while credit unions were down."
Jefferies is afraid that credit unions, too, may not be aggressive enough with attracting new members in 2012. "There is a lot of consumer account movement now but I am not sure credit unions are seizing this chance to gain business from new members and to gain deeper relationships with their current account holders."
Some credit unions are doing a great job appealing to new members, acknowledged Jefferies who also noted that a large number of CUs are just taking what new members walk in the door. "It's the old adage that you have to spend marketing money to make money."
Jefferies added that when appealing to members, especially younger members, the CU must emphasize its accessibility, which means electronic banking and mobile apps. "It's all about convenience now. You have to just about be able to let members handle all their banking needs via a phone, PDA or home computer."
