5 signs it’s time for a credit union name change

There’s a big, hairy issue popping up in discussions with credit union leaders nowadays: the relevancy question. How will you be relevant ten years from now (and beyond)? Are you even going to be around that long?

It’s a vital question to ask now . . . before the metaphorical meteor hits.

And there’s a lot that goes into relevancy—branding, products, technology, operations and more all have an impact. For today, let’s focus on the branding angle, and more specifically, name changes.

A bad name can kill your relevancy. But how do you know when it’s time to say goodbye to your current name? Here are five signs it’s time for a credit union name change.

Despite all the commotion surrounding Cracker Barrel’s latest rebrand attempt, that’s not actually what this point references. No, no—their current brand is indeed outdated (thus why they tried to change it). The company’s growth was slowing, its stock was falling and customers weren’t coming back. Their current clientele was also significantly older than much of the population.

There’s a very real risk of credit unions becoming the Cracker Barrel of the financial industry . . . especially if they stick with outdated names. Some examples of outdated names include:

Some names imply a restrictive field of membership that perhaps no longer exists. Eligible potential members may never even research you simply based on the name alone. If people don’t feel welcome, they don’t join. It’s that simple.

Here’s an example of this principle in action. Fort Lee FCU was a name heavily connected to the military base. It changed its name to Homebase CU, a name more inclusive of those outside the base. Shortly after, they saw a huge spike in membership growth. Sarah Marks, VP of Marketing, said: “In the last two months since the name change, each month has seen year-over-year new membership growth of 30%.”

Your name may be exclusionary if:

Acronyms often seem like a clever way to escape an outdated name, but it usually only muddies the waters. Many acronyms are challenging to say and difficult to remember—a deadly combination for a brand. If you’re trying to use an acronym to hide your name, it’s time for a credit union name change.

NAS JRB CU ran into this acronym problem. The acronym stood for the full, lengthy name of a nearby military base. However, it was (obviously) hard to say and remember. The institution improved brand recognition by changing its name to Instep CU.

Brand confusion happens when your name is too similar to the names of other businesses. Those other businesses may be competitors, or they may merely be local folks in separate industries. Most often, this happens when:

As marketing expert Donald Miller says, “If you confuse, you lose.” You don’t want to accidentally lose members when they search your name and find someone else instead.

A key part of the brand triangle is your staff’s ability to live the brand. And they can’t live the brand well if your name stinks. It’s like trying to introduce your awkward, embarrassing friend at a party . . . you’d rather not do it at all.

If you notice your staff lacks confidence in your name, it may be time for a change. You need a marketer at every desk, so the name must be marketable by the whole team. That doesn’t mean doing a rebrand when one person dislikes your name. But if the dislike is widespread and having business impacts, it’s worth examining a credit union name change.

One extra note on credit union name changes: always dance with who brought you. In other words, never forget your roots. Yes, you need to expand, but that doesn’t mean leaving behind those who got you this far.

Reject intransigence. Recognize the signs pointing to the new name. Then, develop something that respects your history while safeguarding your future.