By Mary Auestad Arnold
"The values in the CU movement are absolutely right on, but I don't think you've translated them into something members understand."
So said Arkadi Kuhlmann, founder and CEO of ING DIRECT, in opening CUES Experience: Immersion Learning for Marketing, Operations and Technology Leaders, last month in Minneapolis.
Kuhlmann was "absolutely right on" himself. We all know there's a "credit union difference," but how to explain it succinctly and convincingly has been the topic of many a blog post, Credit Union Journal's Frankie Awards, not to mention more credit union strategy meetings than anyone cares to think about.
In the end, most of the results are underwhelming, while a few, like Young & Free Alberta, shine brightly through the haze. Happily, I came across another shining example last week: a credit union that is indeed translating its values into something members can understand and also value. Open UW Credit Union's annual report, and the first thing you read under the header "Doing the Right Thing" is:
"Financial institutions seem to be under a collective dark cloud lately. At UW Credit Union, things are different. For more than 75 years, we've been committed to doing the right thing for our members. It's our guiding business philosophy--to always act in the best interest of our members--and we practice it every day."
Yes, lots of credit unions could say they act in their members' best interests, but how many actually tell their members that's what they're doing? And how many would go on to illustrate how this translates into the way they deliver financial services to members?
On p. 5 of the report, $1 billion UW CU, based here in Madison (full disclosure: I'm not currently a member), explains "Our Difference" by detailing how its business practices impact members' (many of whom are college students) pocketbooks:
- UW CU posts checks in order to minimize overdraft fees. And it limits overdraft fees to no more than three per day.
- UW CU, whenever possible, declines debit card transactions that would overdraw an account and result in a costly bounced check fee on the purchase of a $3 cup of coffee.
- UW CU encourages prepayment of student loans and doesn't penalize students by revoking loan discounts when borrowers prepay.
- UW CU doesn't offer loan products with surprise provisions in the fine print.
Clearly, UW CU's leaders understand that getting a square deal from a financial institution is not a prerequisite for every college student these days, and they have done a fine job of spelling out how the credit union is different in a way that would resonate with their target market. On p. 10 of the report, they also demonstrate how doing the right thing for the environment is good for business, a play to their student members as well as University of Wisconsin-Madison faculty, staff and alumni plus the members of this very green community, all of whom are eligible for membership.
My only question is: Will this message go beyond the annual report (which I would never have seen if CUES CEO Fred Johnson had not put it in my mailbox)? The positioning is not readily visible on uwcu.org, nor have I noticed it in local media advertising. Eric are you out there? This inquiring mind wants to know.
Mary Auestad Arnold is VP/publications for CUES and editor of Credit Union Management.
Read more from CUES Experience on the Nexus Connection blog.
