Developing strategies for community based credit unions

Once upon a time, credit unions were built to serve select, small groups. Most were often chartered to provide a financial alternative to banks for employees of a certain company or industry. They thrived, for a time, fulfilling that role. However, as times changed credit unions changed as well.

To keep new members coming in the doors, and to ensure their own future financial solvency, many credit unions turned to community charters. These new community charters, however came with their own unique marketing challenges. It certainly wasn’t the case of “if you get a get community charter, they will come.” After 30 years, it can be said the community charter movement has failed to meet its full potential.

A new white paper (Developing Strategies for Community Based Credit Unions) published by the CUNA Marketing & Business Development Council addresses the challenges community-based credit unions are facing related to marketing and business development (note: I’m biased on this white paper because I’m the author).

Matt Purvis, Principle with Purvis Management in Eugene, OR, noted in the paper that credit unions transitioning from a SEG (Select Employee Group) focus to a community charter may find the new waters a little murky. “The transition from a SEG-based organization to a relevant and competitive community-wide organization with integrated marketing strategies has proven to be very complicated,” he said. “Many credit unions are still struggling with the implications of this shift.”

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