Developing Credit Union Marketing Ideas

home-image-2Credit Unions are regarded as co-operative financial institutions that are owned and controlled by its members, and although it provides similar services like a bank, it is regarded more as a not-for-profit institution, which gives it its distinctive difference, and, because of the changes in today’s world, there needs to be beneficial Marketing ideas in place.

So no matter where you are in the world, there is sure to be a nearby. And like most banking institutions in today’s world, more people are preferring to do their banking online with internet banking. In this way they have more control over their money and it also cuts down on fee costs. A good marketing strategy for would be to become more internet user friendly, and computer literate.

Credit Unions need to start looking to marketing their institution online, and the more internet friendly they become, the more chance they will have at surviving in this cut throat world of financial dependence. So, approaching and promoting to the younger generations whom are already computer literate and spend hours online anyway, will also be beneficial to the Credit Union keeping its doors open through increased membership.

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Marketing Ideas

Benefits Over Banks on Credit Unions

credit-union-moneyThere are many differences between credit unions and banks, but most people are unfamiliar with their separate characteristics. They are both the same in that they can store your money, they offer loans and credit cards, and they have physical locations where you can go interact with a teller and make usual money exchanges.

However, there are some key characteristics of credit unions that draw many people to make the switch. Particularly in this era of bank bankruptcies and ownership changes, many feel uneasy placing their trust in just any bank. This makes the selection process even more important.

The most important thing to know about credit unions is that they are member owned. Once you are a member, you are actually part-owner in the enterprise. Rather than feeling like a nuisance when you call customer service or come in to talk to the bank, you are provided personal attention and care. You are seen as an actual person rather than a pain.

They are also not-for-profit, so interest rates are much better and profits are distributed to the members. Banks continually introduce new fees and raise interest rates in order to cover their own costs and then boost profit. They also pay their upper executives astronomical salaries, so the fees you pay and charges that appear on your bill all help to increase their profits.

Credit unions are exempt from most state and federal taxes, meaning they have less costs to cover themselves and can return some of the savings back to their customers. These savings come in the form of lower interest rates and lower fees. Even overdraft fees are usually significantly lower at credit unions.

There are many factors that play into selecting between a credit union and bank, but it is important that all the differences are analyzed before making a decision. The best choice may be different for the needs of each person.

Key Characteristics

Credit Unions – Advantages and Disadvantages

marching-dollar-signsCredit unions are similar to banks but are owned and operated by its members. Just like many things in life it has its pros and cons. Some may prefer to open an account with a large branch while others prefer to go with a small, friendlier.

Once you open an account with a credit union you automatically become a member. Their goal is to deliver great customer service and please their members. At these banks the members are the owners. At some unions they even allow members to vote on policies concerning their account. At larger banks their main focus is the profit. This is why there are so many fees for every little transaction you make. Anything they can do to increase the revenue of the bank they will.

Another advantage of using a credit union is the low fees. At larger banks they tend to charge a fee for everything. There are overdraft fees, ATM fees, service fees, and much more. At a credit union the overdraft fees are lower and there are no ATM fees. These lower fees mean you are saving money. There are no minimum balance requirements and most accounts are free. The only disadvantage is that although you save money on ATM fees. This means there are fewer of them so they are hard to find. In the event that you have to use any other ATM you will still be charged that bank’s service fee.

Credit unions offer lower interest rates and higher savings rates. Again, their goal is not to make a profit but to provide the best customer service. The interest rates on loans are lower than that of larger banks so again, you save money. At some credit unions there is a fixed rate that interest on loans and credit cards cannot exceed. unions are also willing to work with their members. Weather you have poor credit or bad credit, they are willing to seek a loan that best fits your needs. A credit union may be the best option for people who are looking to own homes but don’t have the best credit. There are even programs available to help members get control of their budget and improve their credit.

A disadvantage to credit unions may be the qualifications to join one. You may have to live in a certain area, or be enrolled in school, or work for a certain employer. However, once you join the credit union you are a member for life. If you one day no longer meet the requirements you are still a member. The only requirement may be that you keep an account open in order to keep membership.

As mentioned before credit unions are smaller branches so their ATM’s are not as accessible. They don’t make the money to put ATMs up all across America so their ATM’s are usually local. With larger banks you can find an ATM all across the country. This can be a huge disadvantage because of the fees charged by other branches to use their ATM’s. The plus side to this is that some credit unions will reimburse whatever fees may be charged by other branches.

Another disadvantage of using credit unions is that their technology is limited. Being that they are non-profit they don’t have the funds to invest in technology. Some credit unions don’t even allow online access to accounts while other sites are fully functional. Being that we live in a world where technology is advancing and used for most things this may be a problem for some people. People should look into this feature before choosing a credit union if online access is important to them.

Unions basically offer all of the same products as a large bank. This includes credit cards, debit cards, mortgages, business loans and checking accounts. The only problem is that since they are non-profit they don’t have the funds to advertise so that people can be more aware. Since a lot of people are uninformed about them they don’t generate the funds that a larger bank would so some of the amenities are different. I do believe that if more people were informed about all of the advantages of a credit union they would choose it over a larger bank. The advantages are greater than that of a regular bank and the disadvantages are less. At the end of the day the credit union would profit more and so would its members.

Advantages and Disadvantages