Invest in the community rather than media

When I first started working with credit unions I read about a big credit union that had stopped advertising. As a recent college graduate with plans of career success paved by award-winning advertising campaigns, I got a little nervous. I assured myself that maybe this approach made sense for a huge credit union, but it would never work for the rest of us.  We needed the mass-market influence of advertising and my illustrious career could still be a reality.

Fast-forward 10 years. Times have changed and so have my philosophies. I see how skeptical my peers are about ads and I’ve seen the success of companies who make investments in their communities rather than media buys. I have changed my opinion about the best way to generate healthy growth and sustainability.

In the past two years at Maps Credit Union, we have stopped almost all paid advertising. Instead, we work with local partners to cross-promote one another’s services and we invest in improving the financial capability of our members and our community. One tool for this is a 501-c-3 charitable foundation we founded to deliver asset-building services. On our own and in partnership with other community groups, the Maps Community Foundation provides financial capability training to community members, offers scholarships to students pursuing the asset of higher education, and applies for grants that are only available to 501-c-3 organizations.

A major source of funding for MCF is the Maps Credit Union Free Community Checking account. Through this account, member activity supports MCF because Maps Credit Union donates one penny from every debit card transaction. With about 400,000 transactions each month, these pennies add up quickly. Best of all, we are able to clearly explain to members how active participation in their financial cooperative makes a real difference in the community they love. We believe this will contribute to levels of engagement and loyalty members feel for Maps.  A 2012 member survey measured the success of this with members reporting significantly higher levels of satisfaction compared to a 2006 survey.

In addition to financial literacy classes, micro-business start-up assistance, and support of low-income tax preparation services, MCF works to engage the community in developing its own solutions. One example is our inaugural Maps Community Challenge. This contest was unveiled to Maps members and the community to encourage them to share ideas to address teen homelessness in our county. The issue of teen homelessness was chosen through a vote from Maps staff concerned about the disproportionate number of homeless youth in Marion County. While results of the contest are pending, we were delighted to receive fifteen new, creative ideas for addressing teen homelessness. At our credit union annual meeting in late October, the winner will be announced and will receive a $1,000 prize. Another $1,000 will be granted to a local non-profit working to address teen homelessness.  We have enjoyed seeing our community respond to this call to make a difference and we are proud to have Maps be the catalyst that set this innovation in motion.

Since shifting our outreach strategy two years ago, Maps has experienced significant growth. Membership has increased from about 37,000 to nearly 44,000 and assets have grown from roughly $380 million to $450 million today. Additionally, Maps has increased lending; something that had remained stagnant for years.

I believe this growth can be attributed to connecting with members more deeply than advertising allows, but every marketer knows that even successful strategies are sometimes attributed to luck. Unfortunately, I don’t have a portfolio of advertising awards to prove my genius when that happens, but a decade later that doesn’t seem so important. Instead, I hope one day to have something better: A vibrant community of credit union members who have made a difference through their financial cooperative. Engaging with our members and serving our entire community will be key to making that a reality.