The Akron Legal News

Credit unions more aggressively solicit customers from traditional banks

TIFFANY L. PARKS
Special to the Legal News
Published: January 28, 2016

With the new year, Telhio Credit Union has rolled out a new marketing campaign urging consumers to “Believe in banking again.”

The buoyant social media and radio spots take aim at traditional banks and extol Telhio’s nonprofit, ownership aspects.

Several other area credit unions have offered a similar pitch for those fed up with big banks.

“We exist for the benefit of our members,” said Jennifer Banker, vice president of marketing for Columbus Metro Federal Credit Union.

“And our board of directors is made up of volunteers, people just like you and me. They have checking accounts and car loans and mortgages just like the rest us. When they make decisions, they think about how it’s going to affect people just like them, because our members are just like them.”

When noting the differences between credit unions and banks, officials from Telhio, Columbus Metro, CME Federal Credit Union and Pathways Financial Credit Union immediately point to the ownership set up of their operations.

“Credit Unions are not-for-profit financial cooperatives, owned by their members. As a not-for-profit financial cooperative, the money we earn is returned to our member/owners in a variety of ways, including lower loan rates, higher deposit rates and fewer/lower fees,” said Michael Spiellman, Pathways vice president of marketing.

“When consumers use a traditional financial institution, they are essentially a profit center for that institution. At a not-for-profit credit union, our purpose is to look for ways to return value to our member/owners. That distinction makes all the difference in the world.”

Telhio Chief Officer of Corporate Communications Jessica Bing paralleled that view and praised the Telhio team for having a laser sharp focus on serving its membership.

“We believe that our fundamental value of putting our members first is what has contributed to our success. At each turn and with every decision we make, we ask ourselves ‘How does this benefit our membership as a whole?’ It is a very different mindset than for-profit corporations,” she said.

Jacquie Ayres, CME vice president of marketing and business development, said she believes members can feel the difference between the business models of traditional banks and credit unions.

“Like banks we accept deposits and make loans. But unlike banks, we return surplus income back to our members in the form of dividends not third-party stockholders,” she said.

“Typically fees and loan rates at credit unions are generally lower, while deposit interest rates are usually higher. Credit unions are operated by members, allowing account holders an equal say in how the credit union is operated, regardless of how much they have invested in the credit union, while banks are overseen by their stockholders.”

Spiellman, who pointed to Pathways at the fastest growing credit union in Ohio, said that for most consumers, credit unions will provide the greatest value they can find at a financial institution.

For those who’ve made money-based new year resolutions, he said joining a credit union could tie in nicely with a range of financial goals.

“It may be one of the easiest new year resolutions one can make because it will actually work,” Spiellman said.

Ayres agreed with that stance.

“The new year is a great time to overhaul your financial life for the better, and one excellent place to start is by making good resolutions that can help get you closer to your money goals,” she said, adding that CME provides financial education to its members.

“Whatever your financial goal need, credit unions can lower your auto loan payment through refinancing, help you save for your first mortgage or get you on the right track to meet retirement goals.”

As a whole, Bing said credit unions are known for taking a personalized approach with members.

“We have members contact us because they are tired of feeling like just another account number elsewhere. Here, we don’t just look at your credit score to make decisions or try to sell you products that don’t help you or aren’t what you need,” she said.

“We take the time to get to know you, your goals and your challenges and then help you succeed.

Banker said she’s thrilled that longtime Columbus Metro members have encouraged their children, grandchildren and even great-grandchildren to join the institution.

“We may not have a branch on every corner, but when they come in, we know their name and we really listen to them. We’ll give them the benefit of the doubt if they make a mistake,” she said.

“It all goes back to getting the most out of your money. If you have a car loan somewhere else, there’s a good chance we can refinance it and save you money. If you have a certificate maturing at bank, we may have a higher rate. If you’re paying a monthly fee for your checking account, we have free checking. Saving a little here and earning a little more there can really add up over the course of a year.”

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