TUCSON, Ariz.— Vantage West Credit Union believes a CU cannot be all things to all people, which is why it has begun a journey that may someday lead it to offer several digital brands.
The first digital offshoot is called HUSTL, a brand built for freelancers, that includes a microsite at www.hustlfinancial.com.
“We really wanted to take a step outside of our traditional approach,” said Kelly Mobley, AVP of digital banking at Vantage West. “This is a path to growth that Vantage West has never taken before. Launching a digital brand was an innovative way for us to dig deeper into our field of membership, tap into new markets and experiment with new product lines, and just uncover, potentially, a significant revenue driver for us.”
In launching the new initiative, Mobley said Vantage West estimates there are 6.7 million independent professionals in the U.S., representing a 2.2% increase from the previous year. Their collective revenue reached $286 billion, reflecting a 9.2% growth compared to 2021.
“It's been a great learning experience and continues to be,” said Mobley about the initiative that launched late in Q1. “We feel this will lead us to some new ideas and new solutions that'll really give Vantage West a competitive edge.”
Mobley emphasized the reason Vantage West chose to target a niche market is it understands it’s difficult for credit unions to be everything to everyone.
“With this digital brand we're able to develop tools and products and services that are tailored to a specific group and meet their needs, that maybe aren't met with broader services,” she said.
The Product Offerings
In addition to interest-earning checking accounts, high-yield savings, and CDs—all with no monthly fees—Vantage West said HUSTL members can access tools and technology designed to help freelancers automatically save for taxes, create personalized savings goals for future projects, supply needs, or equipment upgrades, and track gig income, expenses, and cash flow — all from a single screen.
‘Every Penny Counts’
“We know that especially for freelancers every penny counts,” Mobley said. “Wanting to differentiate ourselves we chose to enter the market with savings and checking accounts that don't require a minimum balance and don't have a monthly service fee. The goal is to allow freelancers to focus on how they can best organize their expenses and income and earn more on their money—instead of worrying about maintaining minimum balances and paying fees.”
The savings account is paying 20 times the national average—4.50% APY on all balances, Mobley said. The checking product pays 1% APY on all balances.
“We found that was really a unique feature because a lot of (business) checking account products don't pay interest unless you're carrying a much higher balance,” she said. “We've got a short-term CD at 5.5% APY on all balances.”
Why Start With Freelancers?
So, why target freelancers first as it seeks to serve niche markets.
“Phoenix was named as one of the fastest-growing tech hubs in the United States, and with the massive layoffs in tech workers in 2023 we learned that many of them were exploring freelance work over a traditional nine-to-five job,” Mobley explained. “When we originally thought about targeting just tech freelancers, we found that not only tech services, but professional and scientific services, made up the larger population of gig workers in the state of Arizona. So, we decided to cast a bit of a wider net.”
Vantage West says its new brand fills a gap in its local market.
“There's certainly a lot of traditional banks and fintechs here, but there's not many that address the unique needs of freelancers,” she said. “By making that our focus we were looking to bridge that gap and provide tools they would need to make their business successful.”
Not a Loss-Leader
Mobley emphasized that HUSTL is designed not to be a loss-leader.
“From the very beginning, as we were conceptualizing what this brand could and should mean, we focused on affinity,” she explained. “As consumers we tend to gravitate towards things we have an emotional connection to. And that emotional connection is so important because it builds loyalty you feel towards a certain brand or a business, really creating a sense of belonging. With the brand's mission and offerings, they speak to a unique need. So, you feel like you're part of something special, that this is the place for you.
“The goal for HUSTL is really to build trust and credibility with this target market, let them know that we know they HUSTL every day,” Mobley continued. “That's why we chose the name HUSTL as a testament to the dedication and relentless effort that defines the journey of this population.”
Additional Brands to Come
Mobley said Vantage West is already considering opportunities for other digital brands.
“This is the first of what we hope to be many digital brands,” she said. “As this grows and there's more opportunities to tap into other markets or other niche groups, we'll look at the opportunity within our field of membership and potentially launch more offshoots of the credit union.”