Three digital marketing predictions for credit unions in 2015

first_imgby: James Robert LayA few days ago, we visted the past and reviewed our top 20 digital marketing resources in 2014. Today, we’ll take a peak into the future as we explore three digital marketing predictions for credit unions in 2015.1. Overall Digital Marketing Budgets Will IncreaseAs consumers continue to adopt digital channels for everyday banking transactions, and as they use digital channels when researching consumer products, credit unions will increase digital budgets as they change their marketing to match evolving consumer behavior.However, the big question we often hear from financial institution’s is, “How much should we spend in digital?” The Marketing Budgets 2014 Report from Econsultancy in association with Responsys (Download the infograph) found that 71% of organizations are planning to increase their digital marketing budgets.This increase of dollars will be pulled from traditional marketing budgets. On average, the organization’s surveyed spend 38% of their total marketing budgets on digital. More importantly, these organization’s reported that 35% of their revenue is generated through their digital channels.With that said, credit unions should expect to invest a minimum of one third of their marketing budget in digital channels. If digital is their primary source of lead generation, conversion and cross-selling, they should invest an even greater proportion of their marketing budget.Furthermore, credit union marketers will set aside dollars within their budgets for proper digital marketing training. According to Adobe’s Digital Distress study, marketers believe marketing has changed more in the past two years than in the past 50 years. continue reading » ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more

Credit union average Net Promoter Score holding steady, while big banks show improvement

first_img 4SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Rebecca Secor Rebecca Secor came to Member Loyalty Group from Educators Credit Union after developing their Net Promoter Program. During her time at Educators, she was a Marketing Specialist, Member Experience Auditor … Web: www.memberloyaltygroup.com Details Will members’ experience be impacted immediately or will there be a delayed impact as members experience the change?Members will experience some changes rather quickly. Other changes, such as extended Saturday hours or fee changes, may take time for members to encounter and reflect in your scores. How many members will be impacted?Changes that affect large portions of your membership will have a greater impact on your overall NPS. Changes – even large changes – that affect smaller portions of your membership normally have a minimal impact to NPS. For example, a credit union decides to bring in/merge with another credit union. If the merger will comprise 30% of the new total membership, you should expect a significant potential negative impact to NPS. If the merger comprises 3% of the new total membership, you should expect a minimal potential negative impact.Your answers to each of these questions will help you to understand the potential impact of a change. It’s imperative that credit unions continue to change and evolve. However, we need to do so in a way that puts the members’ experience at the center of this process. Credit unions can carefully plan ways to minimize problems, anticipate challenges and address member concerns before, during and after changes. In doing so, we can limit the impact of changes on NPS and maintain our loyalty position above banks.Learn More Request your free copy of the Q4 2014 benchmark overview from Member Loyalty Group today. For more information about Member Loyalty Group’s Net Promoter program in general, credit unions should visit www.memberloyaltygroup.com or contact info@memberloyaltygroup.com.Additional best practices will be discussed during the upcoming Loyalty Live Conference this March in Phoenix.About Net Promoter®Net Promoter® is both a customer loyalty metric and a discipline for using customer feedback to fuel profitable growth in your business. Net Promoter® has been embraced by leading companies worldwide as the standard for measuring and improving customer loyalty. Financial Institutions obtain their Net Promoter Score® by asking customers a simple question on a 0 to 10 rating scale: “How likely is it that you would recommend the organization to a colleague, family member or friend?”  Based on their responses, consumers can be categorized into one of three groups:  Promoters (9-10 rating), Passives (7-8 rating), and Detractors (0-6 rating). The percentage of Detractors is then subtracted from the percentage of Promoters to obtain a Net Promoter Score®. Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.center_img If you are like most credit unions, your service experience is a key reason why members do business with you instead of their local bank. Credit unions, based on the industry average, are well ahead of banks in terms of Net Promoter Score (NPS) and overall member experience today. According to Member Loyalty Group’s 4th quarter 2014 benchmark, the credit union industry average relationship NPS remained steady at 58. However, banks are gaining momentum, according to the Satmetrix® 2014 Annual Net Promoter Industry Benchmark Report. The Satmetrix NPS Benchmark report shows the banking average NPS rose for the second straight year to 34.Member Loyalty Group, a leading CUSO formed to help credit unions implement and perfect organization-wide Voice of the Member programs, is the exclusive provider of the Satmetrix® Net Promoter® Software for the credit union industry. Satmetrix® publishes annual Net Promoter Industry Benchmarks and their 2014 reports rank more than 219 brands across 22 U.S. industry sectors, including financial services.What Could this Mean for Your Credit Union?As banks continue to invest in improving their customer experience and improve customer loyalty, it’s critical for credit unions to actively manage their own member experiences. Further analysis by Member Loyalty Group uncovered that half of participating credit unions improved their relationship scores from Q4 2013 to Q4 2014. However, the other half saw their overall relationship scores decline during the same 12-month period. This can be very disconcerting for credit unions that rely on service as their key differentiator. So, what causes a credit union’s NPS to decline?We know that NPS is affected by changes in the member experience. When a change is seen as positive, such as extended hours or adding a mobile banking app, NPS typically improves for the members that experience the change. When a change is seen as negative, such as fee changes or branch closures, credit unions typically see a corresponding decline in NPS. With all the changes that are made within credit unions on a monthly basis, it can be challenging to predict the net impact to your scores.When considering the potential impact of a change, you may find it helpful to ask the following questions:Will members see this as a positive or negative change?Put yourself in the members’ shoes when considering this. Even though a change is likely to be seen as positive in the long run, it may have a short term negative impact. Credit unions commonly experience this when making changes to their online banking systems.last_img read more

Berger to Congress: Merchants’ EMV ploy is smoke and mirrors

first_img 5SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr NAFCU President and CEO Dan Berger told congressional leaders Thursday that merchants and other retailer groups are intentionally detracting from important data security issues by asking for a delay in the EMV liability shift as they wage a “smoke-and-mirrors campaign on ‘chip and PIN.’”The Food Marketing Institute is asking major credit card networks for a delay in the EMV liability shift, now set for October, due to “significant investments of both time and money” and the increased time it will take consumers to move through checkout lines with this new technology. Berger said such arguments by FMI and other merchant and retailer groups just distract from the issues at hand, “including stringent data safekeeping.” Berger wrote to leaders of the House and Senate.FMI’s request is “remarkable,” he wrote, given the growing number of merchant data breaches and lawmakers’ and regulators’ intense interest in this issue. He also reiterated findings of a NAFCU Economic & CU Monitor survey showing credit unions spent, on average, $226,000 and 1,600 hours last year on debit and credit card fraud issues arising from retailer data breaches.The conversation about EMV is important, Berger said, and merchants and retailers need to do their part. “Congress must act to ensure technology standards are accompanied by strong data safekeeping standards for merchants and retailers akin to what credit unions comply with under the Gramm-Leach-Bliley Act (GLBA),” he urged. continue reading »last_img read more

Alabama One must comply with cease and desist

first_imgby: David MorrisonAn Alabama State court denied Alabama One’s request to temporarily restrain the Alabama Credit Union Administration from enforcing its April 2 cease and desist order, according to legal sources and Alabama One members in the Tuscaloosa, Ala., courtroom May 14.Tuscaloosa Circuit Court Justice John England ruled on the motion for the order. continue reading » 5SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

Judge dismisses NCUA suit against US Bank, BoA as RMBS trustees

first_imgA U.S. District judge Monday dismissed three lawsuits–including one by the National Credit Union Administration–brought against U.S. Bank National Association and Bank of America, National Association regarding their duties as trustees of residential mortgage-backed securities (RMBS).NCUA filed the lawsuit in December alleging the two banks failed to fulfill their duties as trustees for 99 of the trusts. Despite knowing about defects in the mortgage loans, the complaint said, U.S. Bank and Bank of America failed to provide required notices to certificate holders and other parties and failed to take timely action to force the repurchase, substitution or cure of defective mortgage loans or otherwise preserve trust remedies (News Now Dec. 18).U.S. District Judge Katherine Forrest ruled the NCUA lacked standing to sue U.S. Bank and Bank of America over 74 of the trusts that the agency moved into new, independent trusts (Bloomberg May 19).Nothing in federal securities law “authorizes NCUA (or the [corporate credit union] for which it acts as liquidating agent) to sue on behalf of separate statutory trusts,” Forrest ruled, according to court documents. continue reading » 2SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more

“Spend less than you earn” is useless, unhelpful financial advice

first_img ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr by: Eric RavenscraftIf you’ve ever read five words about personal finance, they were probably “Spend less than you earn.” It’s popular because it’s simple. In fact, it’s too simple. It’s the smallest piece of a big puzzle with lots of complicated parts. It’s time we taught those instead.What’s Wrong With “Spend Less Than You Earn”?Before I talk about the problems with this advice, I want to point out that I don’t think this advice is wrong. You make X amount of dollars per month and you spend Y amount. If Y is greater than X, you won’t be able to pay your bills, save for the future, or fix your car when it breaks. I think we can all agree that that’s a bad way to live.The problem with this advice isn’t that it’s bad, it’s that most people already instinctively understand it. That’s not to say everyone is good at following it, but instinctively we get it. Why wouldn’t we? We’ve had it beat into our heads since we were in Kindergarten. “If Billy has 10 apples, and he gives away 12, how many of Billy’s kneecaps will the loan shark break?”Life, on the other hand, is less intuitive than simple subtraction. Between social pressures and the inevitable catch-22s of improving your career, it’s easy to slip into a hole without knowing it. Sometimes being irresponsible gets you there, but many more times life gets in the way. An unexpected car bill ruins your savings plan for six months. You lose your job right when you need your medical insurance. Not to mention, the “spend less than you earn” advice rarely accounts for opportunity cost. While you’re staying at home with Netflix, your coworkers may be out at the bar networking, making the connections that will land them better jobs. continue reading »last_img read more

NCUA outlines procedures for handling sensitive information

first_img 12SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr Recently updated examination procedures from the National Credit Union Administration are intended to strengthen safeguards for data received electronically during an examination.The changes, detailed in a letter sent to credit union CEOs last week, are based on recommendations the NCUA’s Office of the Inspector General made in June.The NCUA defines “sensitive data” as: information which by itself, or in combination with other information, could be used to cause harm to a credit union, credit union member or any other party external to the NCUA; and any information concerning a person or their account which is not public information, including any non-public personally identifiable information.“In order to ensure sensitive electronic credit union and member data is well protected, the data held by NCUA needs to be encrypted,” reads the letter, signed by Larry Fazio, director of the NCUA’s Office of Examination and Insurance. “The process of exchanging this data between credit unions and examiners also needs to be secure and well controlled.” continue reading »last_img read more

This week: Congressional Caucus, Dodd-Frank hearing, more

first_img 9SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr NAFCU’s Congressional Caucus kicks off tomorrow in Washington, D.C., as the association prepares for a busy week that will also include testimony by Dixies Federal Credit Union President and CEO Scott Eagerton about the Dodd-Frank Act on behalf of NAFCU before a House subcommittee.Tomorrow at Caucus, former Reps. Tom Davis, R-Va., and Martin Frost, D-Texas, will deliver a keynote address to attendees on what could help solve the legislative stalemate in Washington. They will be followed by close to 30 other speakers from the Senate, House, NCUA and other federal agencies during the week’s general sessions.On Thursday, Eagerton will testify on the impact of the Dodd-Frank regulatory burden on his $41 million, South Carolina-based credit union before the House Small Business Subcommittee on Economic Growth, Tax and Capital Access. The hearing will mark NAFCU’s fourth time testifying before Congress this year. continue reading »last_img read more

CUNA subcommittees discuss regulatory burdens with CFPB, NCUA

first_img 17SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr Two CUNA subcommittees met with Consumer Financial Protection Bureau (CFPB) staff Friday to discuss potential overdraft rules and to remind the agency of the current regulatory burden facing credit unions.The subcommittees also met with National Credit Union Administration staff Thursday, just after the agency voted to finalize its risk-based capital rule.Regarding overdraft protection, the subcommittees discussed credit union overdraft protection, and questioned the CFPB about what it is considering for its overdraft rulemaking. The bureau discussed past and ongoing research about overdraft, and indicated that it is attempting to learn about the practices of small institutions and credit unions through data collected from service providers.“Credit unions offer overdraft products very differently from for-profit institutions. Credit unions offer overdraft services as a convenience and accommodation for their members and members appreciate these services,” said Elizabeth Eurgubian, CUNA’s deputy chief advocacy officer. “We do not support broad new regulation of overdraft services that would limit the flexibility of credit unions to structure their services appropriately, including the regulation of overdraft fees.” continue reading »last_img read more

Why you should aspire to achieve aspirational leadership

first_imgWhat IS aspirational leadership? How is it different than other forms of leadership?Some leaders actively and determinedly seek out their leadership role in their professional or personal life. For others, their leadership role is cast upon them. Either way, once you take on the position of leadership, in whatever circumstance, you need to choose carefully how you frame, or view, what leadership means to you.You could, for example, choose to view and treat leadership as a position or role. Alternatively, you could step up and into your own value, accept and embrace the reality that your leadership role is a privilege and not just a position. Science highly recommends you choose the latter.A range of research studies from the field of positive psychology, including those from Associate Professor Michael Steger at Colorado State University and his colleagues, indicate that leaders (and their teams) who find meaning and purpose in their role are more likely to flourish in life, and to be in a better position to positively influence the lives of others.This is the fundamental mindset of an aspirational leader. They see their leadership as a privilege and not just a position, and they develop a sense of meaning and purpose in being a leader. continue reading » 30SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more