Page 7 - Michigan Credit Union League: 2018 Contact Q1

The Michigan Credit Union League (MCUL) and the Credit Union National Association
(CUNA) are working side by side on research into credit union awareness and public
perception. In parallel studies, early results suggest that, much like their national
counterparts, Michigan credit unions face misconceptions around their level of con-
venience — particularly regarding branch and ATM accessibility — and substandard
mobile app technology.

With shared branches and access to more than 30,000 surcharge-free ATMs through
the CO-OP Network, the convenience misconception couldn’t be further from the
truth. If we’re being honest with ourselves, the issue of mobile technology needs to
be argued on a case-by-case basis.

Where Michigan splits from the greater U.S., however, is with the eligibility myth.
In contrast to what national research has shown, “I can’t join” is much less of a
misconception with Michiganders than it is with the general U.S. public.

Why do Michigan citizens understand credit union eligibility better than the rest of the
country? This is an interesting question. Whether it has to do with amazing community
engagement, strong cooperative advertising or a notable blue-collar workforce with
historical ties to unions, we can only speculate. But at 5.2 million members strong —
more than half of the state’s population — it is apparent that Michigan consumers have
a better understanding of their credit union eligibility than most American consumers.

Very few states the size of Michigan enjoy such a high member-penetration rate.
While it’s important to keep up the good work in this regard, this might be the right
time to expand our focus. With such strong awareness among a credit union-friendly
base, perhaps Michigan credit unions should give a new emphasis on becoming the
primary financial institution of current and potential members. If more than half the
state belongs to a credit union, why shouldn’t credit unions hold half the market
share of total assets? Why shouldn’t credit unions hold half the state’s auto loan
and mortgage accounts?

A misconception that seems to get less attention than the eligibility myth is that credit
unions are simply depository institutions. While it’s a misconception that should be
taken seriously, we should be proud of the fact that we’re in sight of shifting the con-
versation from basic eligibility to deepened product and service usage.

Both MCUL and CU Solutions Group®(CUSG) are actively working to address this
concept. Two prime examples are with MCUL’s CU Link campaign and CUSG’s
LifeStepsTM Wallet mobile application. Both work to align your members’ major life
choices and everyday decisions with the products and services offered by your credit
union. While general awareness is still addressed, these efforts work to keep credit
unions top of mind and top of wallet with current members as well.

In the end, there’s no one-size-fits-all response. It takes an honest assessment of
your credit union, your community and your members. With such strong membership
rates, however, Michigan credit unions have a continued reason for optimism. It’s
time to look ahead, dig in and overcome the next barrier.

FIRST QUARTER 2018 I CONTACT 7