Advertising Builds Awareness
With so many consumers looking to switch financial institutions, particularly moving away from banks, now is the time for credit unions to build awareness and seize the opportunity to attract new members.
The March issue of Credit Union Magazine includes an article, Is it Time for a National Ad Campaign, devoted to credit union advertising and brand awareness, as well as a historical look at national ad campaigns dating back to the 1950s.
The Association’s iBelong awareness campaign is featured in the article as a statewide campaign that has had results in building awareness and increasing membership in credit unions since it was first launched in 2006.
Three other states, Illinois, Mississippi, and Vermont, have purchased licensing rights to use the iBelong campaign.
New spots are currently in production and will begin airing in early April.
Banks have boosted their advertising, trying different approaches to keep and attract new customers, while reminding people what they do for their community. In the Pittsburgh region alone, banks spent $11.8 million on advertising in 2009, up 17% from 2008. The biggest spender was PNC, at almost $2.5 million, though it spent almost 4% less than in 2008. Citizens Bank was second at $1.7 million, up 279%, largely because of a big increase in TV spending.
Credit Union “Nurse Ratched” Assists Ailing Man
What started as a normal workday quickly took a turn when Valley 1st Community FCU Branch Manager PattyLynn Mavrakis noticed a man leaning against a wall and appearing ill inside the Wal-Mart store where the branch is located. Mavrakis said she approached the man and asked if he needed help. She said he felt cold and sweaty and called for her staff to bring a chair. But before they could react, the man collapsed in her arms. While Wal-Mart staff called 911, she tried to keep the man comfortable and stayed by his side until the paramedics arrived.
Mavrakis said it’s just the thing to do. Although she’s always been willing to help people, she truly believes that working in the credit union has made her even more sensitive to people. “My staff calls me ‘Nurse Ratched’ (from One Flew Over the Cuckoo’s Nest),” she said. “I’m always ready to give someone a band-aid or help if they have an ailment.”
She hasn’t heard how the patient is doing, but hopes that he’ll return to the credit union so that the staff can meet him. Maybe he’ll even join the credit union. Mavrakis said “It’s just another way of letting people know that we (credit union) are here for you.”
Certificate Program Awards
For a listing of individuals who recently earned certificates from the CUNA correspondence courses for professional development, please click here. Congratulations, everyone!
Marketing To Gen Y: Topic For Delaware Valley CUES Meeting
The next meeting of the Delaware Valley CUES will be held on March 24 at The Desmond in Malvern. The program topic is Advantage of Marketing to Gen Y, presented by Elliott Kashner and Chris Tissue. Reservations should be made by March 17. Click here for more information.
Tax Refunds May Spark Spending
As Americans begin receiving tax refunds, a recent survey shows they plan to put the money toward a major purchase, such as a television, furniture, or car. The National Retail Federation conducted a survey of 8,560 consumers last month.
Roughly two out of three consumers say they expect to receive a tax refund. About 13% of Americans expecting a refund said they plan to put the money toward a major purchase. That figure is up from 11% in 2009.
The most common uses for tax refunds, however, remain more mundane: paying down debt, building savings, and meeting daily living expenses, the survey said.
Speaking of refunds, the IRS has more than $1.3 billion in funds awaiting nearly 11.4 million people who did not file a federal income tax return for 2006. In Pennsylvania, there are 47,100 people who did not file a 2006 return, with a median estimated refund of $652, or a total of $45 million in unclaimed refunds. To collect the money, a return for 2006 must be filed with the IRS no later than Thursday, April 15, 2010.
Frauds & Scams
Frauds & Scams
Economic Stimulus Letter Scam
A member of Discovery FCU in Wyomissing received a letter, which appeared to be from Investors Group Inc., working “on behalf of United State Department of Business & Economic Development.”
Included with the letter was a check for $2,880, as the first payment of a $15,000 government grant that is “part of the over $700 billion-plus Economic stimulus package). The letter asks the recipient to pay the taxes on the award upfront and keep any excess funds.
“This is a classic scam that asks the recipient of a check to pay the taxes on an award up front and keep any excess funds,” said Ed Williams, President/CEO. “We were able to stop the member from negotiating this check and actually called the person on the letter who hung up when pressed for information.”
Keystone Extra Sneak Peek
Keystone Extra Sneak Peek
Who are the winners of the Lifetime Achievement Awards?
When does the 2010 U.S. Census start?
Why is it important to participate in the Census?
How can Deluxe help with opt-in consent?
Find answers to these questions and more in this week’s Keystone Extra Sneak Peek.
Friday Tidbits
Friday Tidbits
Annoying Office Jargon
“Thinking outside the box” and “Let’s touch base” were the most hated buzz phrases among the 1,836 people recently surveyed by Opinium research. Other annoying jargon included:
The most annoying jargon:
- Thinking outside the box (21%)
- Let's touch base (20%)
- Blue sky thinking (19%)
- Blamestorming (16%) (sitting down and working out whose fault something is)
- Drill down to a more granular level (15%) (Look into something in more detail)
- Let's not throw pies in the dark (15%) (we need a plan rather than a haphazard approach)
- I've got that on my radar (13%)
- Push the envelope (12%)
- Bring your A-game (11%) (Be ready to do something to best of ability)
- Get all your ducks in a row (11%)
Not Tying Knots Changes Men’s Fashions
The number of neckties sold in the U.S. fell 18% in 2009, to 29 million, more than double the 7.3% drop in 2008, according to NPD, a Port Washington, N.Y.-based market research firm. Revenue fell 16%, to $418 million, down from a peak of more than $1 billion in the mid-1990s, when power ties ruled the day.
With the popularity of business casual dress codes and rising unemployment rate, neckties have found their way to the back of the closet and no longer needed five days a week. Men used to buy new ties to dress up old suits and count on new ties as holiday gifts. They don’t throw ties away, so their collection keeps growing.
The neckwear industry is considering a campaign to get workers to dress up again to give sales a boost.
National News
National News
MBL drafters continue push for more support
WASHINGTON (3/5/10)--In a letter circulated on Wednesday, Reps. Paul Kanjorski (D-Pa.) and Ed Royce (R-Calif.), the architects of H.R. 3380, which would increase the cap on member business lending for credit unions to 25%, continued to urge their House colleagues' to support the measure, saying that it makes "real economic and fiscal sense to enhance credit unions' ability to lend to their business-owning members."
The legislation would also raise the "de minimis" threshold for member business loans to $250,000.
Several trade groups, including the National Association of Realtors, the National Small Business Association, and the National Association of Mortgage Brokers, on Wednesday joined the chorus of supporters that are behind lifting the cap on member business lending (MBL) for credit unions by co-signing the letter.
In the letter, Kanjorski and Royce cited Credit Union National Association estimates which predict that lifting the MBL cap would inject $10 billion in new capital into the economy and create as many as 100,000 new jobs at no cost to taxpayers.
According to Kanjorski and Royce, "allowing credit unions to extend loans to credit-starved small businesses will add fuel to a self-sustaining economic expansion."
"Congress just needs to flip on the switch," they added.
Kanjorski and Royce also communicated the need for MBL support in a dear colleague letter earlier this week. That letter was signed by 58 members of the House. Individual small businessowners have also recently called on Congress to support increasing the member business lending cap by writing to their congressional representatives directly.
Levin to serve as House Ways and Means chair
WASHINGTON (3/5/10)--Rep. Sander Levin (D-Mich.) will take on chairmanship of the House Ways and Means Committee after House Democrats on Thursday elected to remove Rep. Pete Stark's (D-Calif.) name from consideration.
House Speaker Nancy Pelosi, of California, on Wednesday announced that Stark would fill the chairmanship on an interim basis as Rep. Charles Rangel (D-N.Y.) takes a leave of absence from the panel.
In a Thursday release, Levin said that he looks forward to "moving vigorously" on the Ways and Means Committee agenda, which includes "job creation, economic development, and health care." Moving on this agenda "means working collaboratively with Democrats on the Committee and the entire caucus, with Congressional leadership and the Obama Administration," Levin added.
Levin, who signed on to support the Credit Union Regulatory Improvements Act in 2006 and has supported the taxs status of fedearl credit unions during his time on the committee, has been a long-standing friend of the credit union movement. Levin was also among several candidates that were endorsed by the Michigan Credit Union League board of directors in 2006.
Credit Union National Association Senior Vice President of Legislative Affairs John Magill said that CUNA "looks forward to a continued good working relationship" with Levin, "not only in Washington but with the leagues back in Michigan."
Chile's CUs spearhead earthquake recovery
SANTIAGO, Chile (3/5/10)--The massive 8.8-magnitude earthquake that struck southern Chile Feb. 27 has displaced 1.5 million people and is estimated to have claimed more than 700 lives. Chile's financial cooperatives, assisted by the country's largest credit union, have undertaken efforts to assist their members with emergency relief despite the fact that many credit unions and their branches were damaged or destroyed.
COOPEUCH, Chile's largest credit union and Latin America's second largest financial cooperative, is collecting funds through its charitable foundation, Fundación COOPEUCH, to help credit unions and their members affected by the quake nationwide rebuild their homes and businesses.
World Council of Credit Unions (WOCCU) will make a donation to the credit union foundation from its own disaster relief funds and invites interested individuals and credit unions to contribute funds for Chilean credit union rebuilding and relief.
WOCCU staff members are trying to assess earthquake damage to the country's credit unions but have struggled with communication issues, according to Brian Branch, WOCCU executive vice president and chief operating officer.
"It is difficult to get information for regions affected by the earthquake because communications capabilities have been destroyed in many parts of the country," Branch said. "But we are encouraged by the fact that COOPEUCH has assumed such a strong leadership role even with many of its own branches damaged or destroyed."
Santiago-based COOPEUCH, which has 85 branches that serve 417,000 members nationwide and holds US$1.8 billion in assets, is still collecting information from its damaged branch offices in and near Concepción, 70 miles from the earthquake's epicenter.
COOPEUCH is one of Chile's five federally regulated credit unions, part of a movement that also includes dozens of smaller, unregulated institutions from which WOCCU has been unable to collect data.
Funds collected through Fundación COOPEUCH will be used to assist all credit unions in rebuilding. The credit union is postponing member dues, minimizing credit card payments and offering reconstruction loans to help members cope with the crisis.
In addition, the foundation is helping plan a telethon in Chile to raise a goal of 15 billion Chilean pesos (about US$29.1 million) to finance the construction of 30,000 houses for people whose homes were destroyed by the earthquake.
Those interested in making a contribution to Chile's earthquake relief efforts can make a donation here: Worldwide Foundation for CUs online donations
For wire transfer information, contact Valerie Breunig, Worldwide Foundation for Credit Unions, 608-395-2055, or vbreunig@woccu.org. Please indicate that your donation is for "Chile Disaster Relief."
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