ANAHEIM, Calif.–Three credit unions pitched their “Big Idea” for a $10,000 prize, with one CU selected in a vote by meeting attendees.
“The Pitch” took place at the CUNA Marketing and Business Development Council meeting here at which representatives of three credit unions shared an idea for which they were seeking the $10,000 to underwrite their idea.
Below is a look at each of the three ideas that were pitched in the order they were presented, with the winning CU identified at the end of this story.
Bike Loan
Credit Union: White Crown FCU, Denver
Big Idea Pitch: Bicycle Loan Program To Help Attract Denver’s Millennials
At the $60-million White Crown Credit Union in Denver, the average age of its members is 55, with 51% of the membership being 51 or older. That runs counter to a downtown Denver market that has increasingly attracted a vibrant Millennial population, many of whom don’t own cars and instead are year-round bicycle riders.
White Crown CU’s pitch? To use the demand for bicycles among younger consumers in its market to attract younger members to the credit union.
“We are in downtown Denver, and if you’ve been to Denver you have seen they are taking out car lanes in favor of bike lanes, and building apartments without parking,” said WCFCU CEO Kerry Spradlin in his presentation. “We do have a lot of members who are over 50. Actually, most of them. We think this is a great way of helping us to attract Millennials. As we say, ‘Wheels move the body, two wheels move the soul.’ Millennials make up a small segment of our membership, with just 7% of our members being 30 or younger. This worries us a lot. Growing members in a younger age bracket would ensure the future success of our credit union.”
With two branches and 11 employees, Spradlin said the credit union is eager to change with the market around it. Twenty percent of downtown Denver’s population is 29 or younger. Sixty percent of downtown Denver employees use alternate modes of transportation, with 18,000 people riding bikes to work each day. There are 40 bike shops in Denver, noted Spradlin.
White Crown is offering bicycle loans up to $7,500 at 7.99% with a 36-month term.
“As a small CU every dollar we use in marketing takes on a greater significance,” said Spradlin in explaining why White Crown was seeking the $10,000 prize. “All of the statistics lead us to believe that with an effective launch and execution a bike loan program would lead to significant growth and an improved bottom line.”
Pop-Up Branch
Credit Union: Local Government FCU, Raleigh, N.C.
Big Idea Pitch: A Pop-Up Branch To Create a Physical Presence for The Branchless LGEFCU
The $1.5-billion Local Government FCU is unique in a number of regards, including that it has no branches. As Jasmine Kilpatrick and Jennifer Moore of LGFCU explained, a pop-up branch would allow it to extend a physical presence for the first time ever. It envisions using the $10,000 to create a pop-up branch that could be used indoors or outdoors and at events across the state.
“The branch would be run by our membership development officers,” said Kilpatrick. “The hardest part of my job is when potential members ask me, ‘Where do I go sign up? Where are your branches?’ And even current members are confused over what credit union they belong to.”
The reason for the latter is that LGFCU’s members are served by State Employees’ Credit Union’s branch network (SECU also runs LGFCU’s backoffice). “Our members really love us, but would really love us more if we had a pop up branch,” said Kilpatrick.
Added Moore, “This allow us to reach out to potential members and show them what an LGFCU membership would look like electronically. It also would allow us to assist members with setting up accounts for our online money management system, called Compass…This would allow us to bring our branch to them.”
Program For Veterans
Credit Union: Community Choice Credit Union, Farmington Hills, Mich.
Big Idea Pitch: A Credit Union Program For Military Veterans
The $735-million Community Choice Credit Union on Veterans Day later this year plans to roll out a formal affinity program to serve U.S. military veterans, including small business owners.
“We plan to show our incessant appreciation for their service,” Alan Bergstrom, SVP, CFO told the meeting. “We want to create a place for them to go for personal service. And we also want to support entrepreneurship and provide tools to help support their businesses throughout connections with the SBA.”
Bergstrom said the credit union will also be setting aside special parking spaces for veterans at each of its branches that are marked in purple, and it is partnering with a number of veterans organizations.
“Our military veterans truly are heroes in uniform,” said Bergstrom. “There are 22 million veterans in the U.S.; in Michigan we have 700,000 vets. They deserve our support. They have special needs, and, we want to be there for them. Military veterans are a very loyal group, probably one of the strongest affinity groups in the country today. Their service involves a lot of sacrifice. Many have risked their lives or put jobs on hold. Veterans account for 9.1% of all U.S business owners. They have unique needs and need our support. Most banks aren’t there to support them, and if they are, it’s a long-distance relationship. They want a local face they can turn to for that support, and who better than credit unions to serve this affinity group?”
And the winner was: White Crown Federal Credit Union and its bicycle loan program.