Why You Need To Strengthen Your Individual Credit Union’s Brand

By Tim Blake, Blake Design

Credit unions have long played the role of “underdog” in the war against “successful” corporate banks. Obviously, this role has served them well. After all, credit unions nationwide continue to gain ground on the banking industry. To make the point, according to a NCUA report, overall credit union membership grew by more than 2.1 million during the first three quarters of 2012. But the tide may be turning.

Not only are credit unions shedding their “underdog” status, but if current trends continue, banks may eventually play “David” to the credit union “Goliath.” As these roles continue to reverse, banking industry forces are not going to sit idly by while they continue to lose marketshare — you can bank on it. In fact, banks are beginning to launch counter-attacks, using covert tactics, to make themselves appear more like a credit union.

Mano-a-mano

For years, credit unions have successfully espoused the “putting people before profit” mantra. Well now it appears that banks are adapting this concept and rapidly deploying strategies that muddy the waters. Not that banks will ever forego profits, they are simply making “customer service” a higher priority.

To prove my point, a recent brandchannel.com article showcased a new branding campaign from TD Bank (TDBG). “Bank Human Again” promotes the customer-centric culture of TD bank. This brand embraces a retail approach to banking; calling its branches “stores,” offering extended operating hours and providing free coin-counting. Sound familiar?

TD is not the only bank deploying this plan of attack. Ally (formerly GMAC) uses a similar strategy to market its services. In a recent television commercial, the spokesmodel states: “a machine can’t give you what a person can. That’s why Ally has knowledgeable people there, night and day.” Night and day? A “live” person? Wow, I don’t know of any credit union doing that. Oh and by-the-way, did I mention that TD Bank’s extended hours include Saturday and Sunday? Any credit union providing that level of service?

Now we all know that a bank will never be a credit union, but that won’t stop them from imitating one. By blurring the lines of distinction, banks are hoping to enlist unwary customers. And meanwhile, they want to lull current inductees into complacency. Rather than moving existing accounts, banks are gambling that adding a few amenities will keep customers entrenched.

Truth is, these campaigns are just the current wave of salvos in this ongoing war. However, if they prove successful, you can expect a barrage of similar activity.

Humanitarian Relief

Credit unions also love to tout their “community involvement” as a key differentiator. Well, banks have forces here too. One example: a rather large “community bank,” in my neck of the woods, promotes community outreach as a huge part of its brand strategy. Not only do they support philanthropic causes, but they also take advantage of opportunities to promote their brand at local, community-wide events. By behaving “human,” in the eyes of consumers, they are perceived as no different — and possibly more caring — than your credit union.

The truth is, nearly every bank has some sort of philanthropic program in place. A large portion of their corporate profits — probably more than your credit union can even afford — flows back into the local communities, in which those banks reside. And they use these opportunities to enlighten people about their brand. So once again, where’s the differentiation?

Self-inflicted wounds

Credit unions haven’t helped their own cause. For years, they’ve tried to convince people that they were just as good as banks; offering comparable services, similar technologies and in recent years, pursuing small business accounts. It’s no wonder the public is so easily confused.

I’m not spotlighting these activities to discourage you but to encourage you… encourage you to invest in and promote your individual brand. Notice, I said “individual” brand. Let me explain.

Strengthen your resolve

Collectively, credit unions have done an adequate job of differentiating themselves from banks. Although one could argue that riding the coattails of an all-out media blitz and a public relations debacle is not really a marketing campaign. But independently, most credit union brands are lagging far behind.

Your brand exists in the minds of others; it’s what they say about you, when you’re not around. So if others are saying things like “my credit union is involved in the community” or “their customer service is top-notch?” your brand is already wounded. Only by remaining independently relevant, in the minds of your members and prospects, will your brand be able to withstand an industry-wide maelstrom of legislative bombshells and negative propaganda.

I’m not telling you to abandon your allies… quite the opposite. By reinforcing your brand, you actually help the industry as a whole. If your brand isn’t strong enough to withstand an onslaught, it’s a detriment to others in your outfit. Only by shoring up your own brand are you equipped to support others throughout the industry.

Forward March!

Banks will continue to chip away at the differences, hoping to mislead consumers. And you had better believe that the banking industry is looking for every opportunity to regain lost ground. So if your brand is riding solely on the recent wave of “credit union” karma, then guess what, your’s is the weakest link.

Hopefully I’ve convinced you that it’s time to take your brand seriously. Eventually, banks are going to respond. Will your brand survive?