Up until about a year ago if you were a CU marketer and you were in need of a campaign idea, if all else failed you could always fall back on Mr. Dependable, the refi campaign.
No more. Rising rates have pretty much put an end to that half-decade long staple of CU marketing, including broad campaigns in which overall savings to members were touted and advertised.
Case in point is Huntington Beach, Calif., NuVision FCU, which ran a very successful refi campaign in 2013, but has opted not to try to wring out a few more refi dollars in 2014. Like many, last year NuVision staged a "Switch & Save Challenge," in its case reporting that it saved members $25.2 million in mortgage loan interest. Members also refinanced other loans, as well, which are included in that savings figure.
Nuvision's VP-Marketing & PR, L.J. Tarman, said the effect of rising rates could be seen last year when refi volume began to fall off by mid-2013, with 70% of volume taking place in the first half of the year. Now it's focus is changing.
"We recognize that the consumer market has shifted away from refinancing existing mortgages to new home purchases," said Tarman. "However, we encourage our members to continue to see how much they can save by switching to NuVision in 2014, whether it is an existing mortgage loan or another consumer loan."
- We've seen plenty of credit unions change names, and afterward heard the objections from some members who don't care for what's on the new signs. In Fort St. John, British Columbia, ordering those new signs will have to wait at North Peace Savings and Credit Union, which was seeking to become Adaptiv CU. While 63% of members voted in favor, bylaws require 67%. So for now, it will just have to adapt.
- College grads, get ready for a post-grad introduction to reality. Credit unions have invested much time and money in financial ed, and it's most often aimed at elementary and high school students. But many young people continue to arrive at college with little knowledge of personal finance.
Was at a meeting recently when Michael L. Bell, executive director of the Florida Council on Economic Education, told a group of CU execs that a survey of freshman at the University of South Florida found that the majority continue to get financial advice from family and friends, that 76% keep no records of expenses, and that 53% are concerned from moderate to a lot about the debt they will have when they graduate.
But, hey, why worry about debt? Bell said students surveyed expect to earn $70,000 annually upon graduation, and $150,000 once they are established in their careers.
"There is a lot of mythology around income," said Bell. "We need to start with the basics of what can I expect to earn upon graduation? Most don't have good basic information on what certain careers pay, or what it's going to cost to enter that career. The average Florida student graduates with $23,000 in student debt. So they are experiencing a debt crisis pretty early. Thirty percent of college graduates' income goes to paying debt. This does not include any credit card or auto loan debt."
Where might CUs fit in here? "Ninety percent of teachers believe students should take a personal finance course in high school, but only 20% feel confident they could teach it," Bell said.
Eighteen states require high schoolers to take a personal finance class prior to graduation. But as Bell's previous statement indicates, taking a class in finance may not be the answer if the teacher isn't qualified. For that reason, he said the Florida Council on Economic Education is emphasizing that teaching "life skills is more than just a three- or four-month course" and it is piloting an institute for teachers so they can become certified as an FCEE Master Teacher.
"We are really trying to focus on decision-making skills," said Bell. "Financial literacy is not just about money and savings, it's also critical thinking to prepare for challenges in the future."
Want to see what one state is attempting to do? Visit
The takeaway from Bell's presentation: rather than just leading financial ed classes for students in their communities, perhaps credit unions should offer classes to teachers, too.
- Like so many other meetings, the recent CUNA Marketing & BD Council conference had numerous breakout sessions speaking to social media. So it was hard not to notice when one speaker asked a room of approximately 100 CU marketing professionals, "Does anyone out there have a great success story in using social media for business development?" No hands were raised.
- Finally, I need to give credit where credit is really due. In a recent column proper credit for some eloquent feedback related to the CUNA CEO job and who should fill it should have gone to David Adams, president of the Michigan league.
Frank J. Diekmann can be reached at
