Credit Unions Use Text Banking to Interact with Members

A recent Nielsen report backs up what a lot of us see every day: young people, especially those 13-17, use their smartphones to text. A lot. Close to 3,500 times per month on average. Smartphone users age 18-25 are the next highest-users of texting at close to 2,000 messages sent per month. Another article reports that texting is the number one reason people cite for buying a smartphone. The same article states that as texting use continues to increase, actual call-time sees a steady decrease. Some would say we have transformed our smartphones into high-tech telegraphs, tip-tapping out messages all day log where once calls sufficed. Others, including many credit unions, are embracing the opportunity to interact with existing and potential members.

One such text-technology adaptor is Fresno County Employees Federal Credit Union ($425 million) in California. Keri Bennitt, Vice President of Marketing and Membership, says that while text banking is a relatively new product offering, members have taken to it with great eagerness. In one year, Fresno County FCU saw over 2,100 members sign up for text banking and in January 2012 completed over 11,000 balance requests. Their iPhone and Android apps also fared well, with over 13,000 log-ins last month.

While text banking is a popular offering, it is one component of four that comprise Fresno County FCU’s mobile account access portfolio. In addition, they also offer a mobile-optimized website and apps for both iPhone and Android users. “We decided to brand all these convenience services, mobile banking, text banking, mobile apps and mobile web, as MYCU2GO,” Bennitt explains. “We came up with a logo and designated website pages to help explain them all to members. The Fresno County FCU webpage on text banking describes this service to members. Using this feature, members can check account and savings balances, account history and transfer between accounts, including loans. To sign-up for text banking, members must established home banking access and enroll through it. All access is provided through a series of simple text commands members send in via their smartphones. After the correct command is sent, the credit union responds instantly with the requested information. For example, a member in line at a grocery story could verify his or her checking account access with a simple text, rather than having to log-in to a mobile banking website or app.

Hawaii Central Federal Credit Union ($153 million) has run entertaining promotions to help brand and market mobile convenience services, including text banking, to members in the past. Last year they ran their third annual “Fastest Texter in Hawaii” contest. Texters compete in elimination rounds and are scored on time and error rate. A $500 grand prize went to the winner. The credit union helped brand the contest, and its mobile convenience services, on its Facebook and Twitter pages.

Integrating text banking and other mobile convenience services into the greater marketing scheme of things is critical to member adoption, endorsement and use. As with Fresno County FCU and its MYCU2GO program, credit unions must use every marketing and communications tool at their disposal to announce, promote and cross-sell mobile marketing convenience services. From the basics, like statement inserts and newsletters to more advanced techniques, including email campaigns and social media mentions, credit unions that consistently hammer the message about new products (like text banking) are more likely to see them heavily used. Text banking, then, becomes another powerful tool in the credit union marketer’s arsenal to communicate with current members as well as to attract new members. The power of text banking, like text messaging in general, lies in its simplistic yet compelling method of connecting people to people (or, in this case, members to their credit unions).

“The ease of access provided to our members via text banking is really amazing,” Bennitt notes. “By making it a part of our MYCU2GO suite of mobile access services, we positioned the credit union as a provider of the technology that so many members expect.” Bennitt also shares that text banking is proving an excellent marketing and communications tool to attract young members, many in the “text-rich” age demographic described in the Nielsen report. “We know that not every member, especially the younger ones, carry a laptop around all the time,” she says. “In fact, it’s smartphones and tablets you see on people every day, wherever they go. Fresno County FCU wants to tap into this communications tool, showing our members a true commitment to service and convenience. Text banking is a powerful yet easy-to-use feature that lets us do that.”

While the sky is the limit when it comes to branding text banking, three easy steps to help achieve this goal include:

• Host some sort of contest or other special event (e.g., Hawaii Central FCU’s “Fastest Texter in Hawaii).
• Create a separate yet integrated brand identity (e.g., Fresno County FCU’s MYCU2GO).
• Make use of existing social media channels to spread the word, using staff and member recommendations to bolster the grassroots message.

It certainly seems that while texting in certain situations, like distracted driving, can have negative implications, text banking is a powerful membership attraction and retention tool. As consumer use of text messaging continues to rise, a corresponding number of forward-thinking credit unions will employ text banking in the next generation of member convenience services.

For additional information on mobile marketing and text banking, please visit the Mark Arnold blog post “Mobile Marketing is More than a Text Message.”

Mark Arnold, CCUE, is an acclaimed speaker, brand expert and strategic planner. He is also president of On the Mark Strategies, a consulting firm specializing in branding and strategic planning. Some of the services Mark provides include strategic planning, brand planning, leadership/management training, marketing planning and staff training. His blog is blog.markarnold.com. You can also contact him at 214-538-4147 or mark@markarnold.com. www.markarnold.com