BROCKTON, Mass. — Thanks to massive consolidation in the marketplace, Massachusetts is now heavily saturated with foreign-owned financial institutions, providing one CU with the opportunity to tout its "local" message.
Almost 28% of all deposits in the state are in foreign banks, far higher than the national average of 6%, with about $43 billion stashed in accounts in just three of such institutions including Toronto-based TD Bank and Citizens Bank, which is owned by the World Bank of Scotland.
HarborOne Credit Union has taken to the radio and television airwaves and launched ads in print as well as online in an all out effort to revamp the image of the local financial institution. The $1.7-billion credit union fired up its $100,000 campaign in January but the positive reaction community has been so strong that it is continuing the ad schedule two weeks longer than originally planned.
"It's been anecdotal in terms of the response rate we've received, but it has been a very strong campaign," said Jim Rice, senior VP-marketing. "We have been getting phone calls and e-mails from employees, customers and even others in the banking industry telling us how great the campaign is."
While the campaign does not include a special offer for potential members to move their money to HarborOne, the ads do stress the impact local financial institutions have on the communities in which they are based.
"Deposit dollars are reinvested in local communities in the form of loans and we're also focused on charitable giving in the community," Rice noted. "Our employees are involved extensively in our Caring Crew which is a volunteer organization [helping] homeless and shelters for women, and we're very involved in local hospital groups."
The credit union opened a multi-cultural banking center in downtown Brockton two years ago to educate low and moderate-income residents, minorities and immigrants so they could avoid predatory financial practices. More than 1,000 people have taken classes at the center, including courses on the basics of personal finance, first-time home ownership and foreclosure prevention.
HarborOne recently received its fifth-straight "outstanding" rating for CRA by the state's division of banks. Its charitable work coupled with $873 million in residential and commercial real estate loans in just a handful of counties can provide a powerful image in a time where Americans everywhere are looking for help to stay afloat and in their home; Rice is convinced that the image campaign is significantly boosting a 10-year mortgage product the credit union is promoting simultaneously.
"With all of the turmoil in the financial markets, both here and around the world, it is an ideal time to inform people of the benefits of banking locally," HarborOne CEO James Blake added in a statement. "Unlike multi-national institutions, our concerns are focused on the people, cities and towns we serve right here."
