According to a Banking My Way article titled Credit Unions Reach Out, Strike Out on Twitter: “A recent study from IBM shows that 68% of banking executives are unprepared for new communication technologies like Twitter, suggesting that credit unions risk losing customers to larger banks that do a better job of engaging customers in social media. My take: The author of the article is misinterpreting what’s going on: 1. Credit unions don’t risk losing “customers” to larger banks. 2. Bank customers may want to engage in social media, but not necessarily with banks. 3. Big banks don’t do a better job at the social media game.
WWJD? It’s a question that I’m sure is on the minds of many people. What would Jerry do? Jerry Garcia, that is. And what he would do, if he were a credit union CEO, that is. It’s a question that I’ve addressed in two recent conference presentations, first at the CU Directors Conference last summer, and then again to the Young & Free Spokesters’ meeting held the day before the CU Water Cooler conference last fall.
Have you seen the YouTube video from Summit Federal Credit Union titled Sh!t Banks Say? Kristen Christian (Bank Transfer Day creator, and hero to thousands of creditunionistas) calls the video “an example of stellar marketing.” My take: At a minimum, this video is ineffective from a marketing perspective. Potentially, however, it could be damaging to the credit union’s reputation. Why? The hypocrisy of Summit — and let’s face it, lots of other credit unions, as well — to bash banks for charging fees when its own fee schedule is no better is a shame.
An article on MainStreet, Study: In Customer Service Battle, Big Banks Win, reports on a study conducted by RateWatch and IntelliShop that found that: “Credit unions, for all their benefits, just aren’t as good as big banks at closing the deal with prospective customers.” My take: The title of the MainStreet article is a gross misrepresentation of the study’s results.What the study captured was the sales performance of the different types of FIs, not the customer service performance.
The Debanked are mainstream consumers who willingly choose to manage their financial lives without the help of a checking account. When they close out their checking accounts, $30-40 billion in deposits is coming out, and–more importantly to banks–nearly $1.7 billion in revenue.
Bank Technology News reported on a survey of bank executives which found that 87% say the hope of strengthening customer ties is driving the development of mobile banking apps at their institution. My take: What flavor of kool-aid are the 87% drinking that make them think that mobile banking apps will “strengthen customer ties”?
An article on GOOD News suggests that “with 5.6 million people and counting, the Move Your Money campaign worked.” According to an analyst quoted in the article: “if we assume that the average American family has $3,800 in the bank, and we assume that only 300,000 of the 5.6 million people who moved had even…