You are currently browsing the monthly archive for February, 2008.
Xerox.
Kleenex.
Coke.
Google.
The ultimate goal of any brand is to become a “word” that dominates your category. That your brand means to “make a copy” or “search for something.” That you ask for a “coke” or a “kleenex” instead of a soft drink or facial tissue.
So naturally, if your credit union was founded by one of these icons and you were allowed to bear their name - you should dump it.
As was the case with Xerox Federal Credit Union.
According to the CU Journal article on February 25th:
The Xerox name is well known–but perhaps a bit too well known for a credit union that also serves other employee groups. As a result, the $702-million Xerox FCU is changing its name to Xceed Financial CU.
Really?
Even the CEO admits that only 35% of their membership is still Xerox. So doesn’t that mean the word is out? Now anyone can join Xerox FCU??
This doesn’t appear to be a case of sponsor getting skittish with them using the incredible brand name - in fact, just the opposite.
Ubiquity is our enemy. We are becoming a weird brand with weird names that mean nothing. Kinecta, Achieva, Veridian, Visterra, Advantis..the list goes on.
I’m still waiting for Taco Bell to learn from our examples and become Mexican Food Bell.
Truth in Lending.
Truth in Savings.
Fair Credit Reporting Act.
All necessary evils. It’s interesting to look at those titles. They require financial institutions to tell the truth and to be fair.
It would seem like anyone wanting to be in the business of taking your money would already have those values. Wrong. So when we don’t tell the truth and we’re not fair, we get spanked with compliance. It’s the naughty stool. The time out issued by the Feds.
Almost everyone has lied at one time in their life. Whether it’s a little white lie or a whopper-of-a-televised-lie-in-an-interview. There’s some guilt, and if you’re caught you usually try to explain why it wasn’t really a lie…rather than just admitting, okay, I screwed up. I’m sorry.
My friend Jeff Hardin sent me a link to a podcast yesterday. It was the story of a single mom who got caught in the cycle of payday lenders. You see, the lenders lied. Of course they’ll tell you that they aren’t lying, they just don’t have to disclose everything because their business is not as regulated — yet.
I couldn’t help but think of the courtesy pay product that has become fee income heroin to many credit unions. We get to lie to members. Because “technically” we are not loaning them money, we don’t have to disclose an interest rate.
According to one credit union’s website:
It is a non-contractual courtesy that we extend to our Members who maintain their checking accounts in good standing. This feature is discretionary on the part of the Credit Union.
Back in the day (which, according to comedian Dane Cook was a Wednesday btw) the credit union I worked for had courtesy pay. We would look at the overdraft list and call members (as a courtesy) and let them know they needed to make a deposit or we were going to return a check. We did this for free. Most of the members brought money in right away and were very thankful for our courteousness. Now I get that we can’t possibly do that today. What with technology and all…but how about this:
If a member qualifies for a $700 courtesy pay limit, why wouldn’t you just qualify them for a $700 line of credit at 18% interest? The member would only have to pay $10.50 to repay that amount in 30 days. Instead of $27.50 per item (as noted on one credit union website) which puts the interest rate at around 50% - IF there was only one item paid for $700.00.
I found this company pops up first when you google “courtesy pay.” According to Parker in the video demo - you aren’t serving your members well if you don’t have a courtesy pay program. OH, AND you can Improve NSF income 120% to 400%
How can that be? One of the “features” of courtesy pay according to a credit union website:
Courtesy Pay is provided as a service to help you avoid additional fees by the merchant or payee. When you overdraw your account, a fee is assessed either as an NSF fee of $27.50 when we return the item unpaid to the merchant or payee, or as a Courtesy Pay fee of $27.50 when we pay the item.
Given that scenario, wouldn’t the fee income be the same to the credit union?
Here’s the saddest part for me. WE (meaning the credit union movement) were founded because of courtesy pay programs, aka loan sharks. People of small means could only get credit paying exorbitant interest rates. I’m not making this up..check it out:
Desjardins became aware of the outrageous interest being charged by loan sharks and organized the credit union to provide relief to the working class.
I hate to think that after 100 years (next year will mark the 100th anniversary of the first American credit union) that we would have to be legislated BACK to promoting thrift, telling the truth and charging fair rates.
I’ve been toying with the idea of “naming” my company. I always had this vision of being the next Tom Peters. You know, my name IS my brand.
But sometimes I’ll call a client and get screened by the receptionist. “May I please tell important person who is calling?” they will inquire, “Denise Wymore” I respond. “And who are you with?”…….um……me?
Tom Peters solved that by saying “The Tom Peters GROUP.” Of course, that would imply that he has a group. But I don’t have a group. It’s just me. And for those that have known me a long time, I don’t partner well.
So, I’m seriously thinking of calling my business Cult-ivation. Because creating a cult-like devotion to your brand (think Apple) is what it’s all about.
Thoughts?
I opened the door and walked into the waiting room. Fluorescent lights, plaid upholstered chairs lined up like soldiers against a wall with bad art. I signed in (as instructed) at the check-in desk and took a seat. A People magazine from June of last year sat all dog-eared for me to read. The hiss of silence ringing in my ears. I hate waiting. Movement behind the greeter station. I must be next. A woman checks the clipboard, looks out at the waiting room and says “Miss Way-more?” Struggling with my name.
I follow her to the back. I’m anticipating the scale. I HATE being weighed and her botching of my name makes me even more anxious. Was that intentional? I’m ready to drop my purse, kick of shoes and coat, large jewelry…anything to Way-less…..
Oh but wait - I’m not at the doctor, I’m at my credit union.
I’m escorted to an office cluttered with Happy Meal toys and pictures of kids and cruise ship excursions and funny quotes that appear to be third generation copies scotch taped to the front of the panels on the cube that are supposed to “hide” clutter.
Piles of files are on a credenza behind her and a pile next to the computer. I wonder if I’m adding to that with my request. She parts some brochure racks (like the red sea) as she slides a form with boxes so tiny I have to pull out my glasses to read the instructions. This, is my “application” for membership, she explains. As I fill it out she moves papers around, leans in and squints at her monitor. Types a few things on the keyboard.
FADE TO BLACK…..A figure emerges from stage left:
“Does this scene look familiar? If you were to start a credit union today would you set it up this way? Would you build the first impression to mirror a doctor’s office waiting room? Would you hire an interior designer that would scour E-Bay looking for old trinkets from Happy Meals so you could carefully mount them on top of your monitor? Would you really make members SIGN IN to JOIN??”
I didn’t think so…………
“Advertising is the modern substitute for argument; its function is to make the worse appear the better.” - George Santayana
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