Market Repositioning Strategies Enhance Member Value

Re-branding was a trend this past year as credit union executives actively pursued market repositioning strategies. 2003 saw many credit unions actively modifying their charters beyond their traditional employer-based memberships. For example, United Airlines Employees Credit Union ($4.5 billion, IL), which was historically tied to its sponsor, expanded to other groups surrounding its airport locations. United has since been able to provide its old and new members access to over 17,000 credit union-owned ATMs across North America by joining the CO-OP Network.

 

By ALPS Federal Credit Union

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Re-branding was a trend this past year as credit union executives actively pursued market repositioning strategies. The year 2003 saw many credit unions actively modifying their charters beyond their traditional employer-based memberships. For example, United Airlines Employees Credit Union ($4.5 billion, IL), which was historically tied to its sponsor, expanded to other groups surrounding its airport locations. United has since been able to provide its old and new members access to over 17,000 credit union-owned ATMs across North America by joining the CO-OP Network.

Additionally, over 65 credit unions over $50 million in assets took the risk of changing their name and consequently, the face they’re putting forth to existing and potential credit union members. The biggest credit union that adopted a new name was $1.67 billion Dearborn CU, who made the switch to DFCU Financial FCU (MI). Other credit unions that changed their name in order to enhance their branding – or reflect their wider field of membership – were Austin Metropolitan Financial (TX), which made the switch to Velocity Credit Union ($316 million), IBM Mid America Employees (MN) , now known as Think FCU ($1.1 billion), Detroit Federal Employees (MI), now known as Peoples Trust ($140 million), and FSH Employees (FL), now Focus CU ($80 million).

In addition to becoming more “open” organizations, charter conversions have been a continuing response to market threats and opportunities. In Utah, almost all of the large state charters converted to federal charters. This even included billion dollar credit unions America First and Mountain America.

To get additional information on charter conversions and total membership and keep up-to-date on credit union name changes, visit Callahan’s Directory Online or consult Callahan’s 2004 Credit Union Directory.

 

Dec. 8, 2003


Comments

 
 
 
  • Too superficial. We all know that there's a lot of activity out there. How about sharing what the re-branding campaigns and strategies look like? Some take on the process which could give CU's in other markets ideas? Some actionable information?
    Anonymous
     
     
     
 
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