Hello, and welcome to the Theory of Marketing Relativity podcast. I'm Jess Burton, a marketing specialist here at Epic Marketing Consultants Corporation. Let's talk all things marketing and merchandising with our Epic team. Today, my guest is the Cooperative Credit Union Association's Director of Communications, Carole Langiu. Welcome to our podcast, Carole.
Carole:Hey, thank you, Jess, it's great to be here.
Jess:Absolutely. I love getting to talk to the different, different industries, but a lot of different credit union people because I, a lot of my clients are credit unions. So I think it's super interesting to kind of get to dig into what makes credit unions special.
Carole:Oh, yeah. And then they're definitely very special, in my mind, my mind, especially, but just just by the nature of their being the by their very charter, you know, they're, they're chartered. And part of their reason to be so to speak, is to, you know, help people succeed, you know, financially. And so that's their whole reason to be.
Jess:Absolutely, I think I and I know I've said this, like a number of times, and I joke all the time here at Epic, that like, I was like, I should just become like a credit union ambassador, because there are so many things that I've learned working at Epic and working with a lot of our credit union clients about how credit unions have kind of evolved from being like, some of them are still super specific. So you have to be a member of a union. I know, like my dad is an electrician. So he's a member of a credit union. Therefore, I am a member of a credit union. It's only open to people who are part of the local union. But there are plenty of ones that we work with, I'm sure that are members of the CCUA, who their charters are written so they can welcome almost anyone who is living in a certain area or working or worshipping in a certain area, which I think is phenomenal.
Carole:Yeah, did some, it's all in that that charter, like you said, a lot of our credit unions grew up serving specific groups, such as your dad's, you know, electrical union, and then as sometimes a business would go out of business, and then therefore, the credit union would have to evolve or go out of business as well. So at that time, a lot of credit unions said, okay, well, you know, auto workers are really a lot like electrical workers, so maybe we'll serve both of those kinds. And they just expanded their group, some select employee groups, they call them segs, they just kind of expanded the seg groups that they could work with and serve. And then some credit unions said, you know what, we just want to just take everybody in the whole community. So they elected to go with a community charter, which as you said, you know, and basically, it's within that community, live work, worship, go to school, and the family members of the people as well. So a lot just depends on the credit union, and you know, how they've evolved throughout the years.
Jess:Absolutely. I think a lot of times a benefit the credit unions have is that because they do tend to be I mean, there are some very large credit unions. But because they do tend to be more on the local level, they tend to be very personable. I know I laugh all the time, because I grew up going to a credit union and the lady that was always the one teller, there were two ladies, and I'm sure that they are well into their 70s or 80s by now. They were always at the front desk, and I can hear her voice I can like picture her because she was always like, and she knew who we were, she remembered my dad, she always remembered my papa, who was also a member. It was one of those things where like, I walk into a bank now and it's like, I walk in I have bank accounts everywhere, but sometimes I walk into like a bigger bank, and it's not quite the same, you know, warm, like feeling of like the person that the teller desk recognizes me, they know my name. They're asking how my dad is they're asking, you know, what I'm doing this summer there. They know. I feel like credit unions do a great job of being warm and welcoming in a industry that tends to get a bad rap for being very I know, our one of our copywriters calls it cold, because financial services is not, in my opinion, very exciting.
Carole:Yeah, and you're right, though, a lot of people that work at a credit union, they find it that's kind of like their calling, if you will, they enjoy being able to interact with the members, they enjoy getting to know, you know, their members as they come in, and the families of their members, as you said, and it's just something that like stays with them. I've been in the credit union industry for about 25 years now. I came over from a bank, you know, I came from the dark side, so to speak. And I started as a part-time teller, one of those people, and I always liked seeing, you know, the members that come in like every Friday, cash their paycheck, and this and that. And I really, I really, really enjoyed when I kind of made the switch over to the Member Services side. And I was able to open accounts and things like that. And then one of the ladies who had been coming in and taking care of her own, you know, family business for years and years with me, had came in to open accounts for her kids. So I opened up the accounts for the kids. And she told me, several years later, she said, you know, what, really stuck to me, she said, is when we came in, and we opened up the accounts for the kids, she said, you actually spoke to them, like they were real people. You just didn't ask me all the questions and address everything to me, you actually talked to them, you know, what were they planning to do with their money? What, you know, what were they going to be doing at school? And she said, and that that real personable connection, she said, it always rang, rang a bell with the kids as well, because they always remembered, you know, opening that first account. So it's just something that I think the people who work at credit unions, I think they have a very special affinity to human interaction and working, you know, and serving and helping people.
Jess:Absolutely, I think especially because it's, I mean, from, like the roots of credit unions, they were, you know, formed for people who are employed in the community, for the community. So I definitely think that it is easy for them to be a part of members' lives and help them with those financial decisions. It's talking about your story, it's funny that you mentioned, like kids, I know a lot of people think that financial services are just, I open a savings account, I open a checking account, I get a loan, I get a mortgage, I get an auto loan, whatever. How else do you think that credit unions can kind of show their members that they're listening and that they're here for them?
Carole:I think a lot of credit unions, they participate with financial education. I know right now, it's kind of difficult, you know, with COVID, social distancing, and all of that, but I know a lot of the credit unions will put on, you know, special events and things for their members. And they'll talk about, you know, these differences on your credit scoring, you know, what goes into a credit score. It's all well and good to say, you know, you know what your number is, but do you know how that numbers made up, what impacts your credit score the most, you know, so they actually take the time to go through, you know, and teach their members about the different aspects of, you know, financial education, the different aspects of the accounts they hold. A lot of times, it's, it's not so much a hard sell with a credit union person either, they're actually looking to help you. So you could come in saying, Oh, I saw this new car that I really love, and I want this loan for this new car, and can you give me a better rate? Well, you know, they, they, they can discuss the rate with you, you know, that's not a problem there, they can discuss all of those mechanical aspects of the loan. But then they also can say, you know, this is a car that you're just going to be driving around, you know, maybe you could get the same with a lesser amount of money and not have to have a great big payment, you know, or they can if you know, your heart's set on it, and you really want it, but you can't afford it, maybe your credit score isn't good enough just yet to be able to get that type of a loan. Well, they can kind of coach you on the things that you need to do to improve your score so that you can qualify, a lot of times we would tell our members, you know, before you go and look for that car, come to the credit union, go kind of through the process and get pre qualified; find out how much money you can comfortably borrow and comfortably be able to pay back. So that when you go to the car dealer, you can say, you know, this is what I want, and they can't kind of steer you into a payment that you're not going to be comfortable with. And they can't steer you into something that you're not really you know, wanting, because you have that knowledge ahead of time. Knowledge is power, and our credit union employees, they love to help people. That's one of one of their things, and they will help people however they can, whether it's you know, educating them on something or maybe you come in and you think you want a personal loan, to do some work around the house and they you know, they'll talk to you a little bit and they'll be like, Well, you know, what, you have that mortgage and so they'll talk to you and maybe they can they can help you find out that if you get a home equity loan, not only can it take care of getting whatever it is that you want it to get fixed around the house, but it's gonna be at a lower rate, because the equity in the house is kind of the collateral for it. So it's, it's more of a secured loan on so the rate would be better. And not only that, but as you pay that back, the money comes available to you again. So the next project down the road, it's kind of like the money is there, and you don't have to come out and get another loan for it. So they're able to help you to do those kinds of things. And trust me, I mean, I've been there with the the widow who comes in and the husband has passed, unfortunately, and she has no clue of what's going on in the checkbook. You know, and I've been there to help her, you know, figure things out, and then every month, you know, come in and make sure that the checkbook's right. Sometimes that's not as much for the actual arithmetic involved in the checkbook as it is as the human contact of, you know, sitting down and just discussing, you know, things with them for, you know, the half an hour, 45 minutes that it might take to get them straightened out. But it's it's where, you know, they're there for the members, whatever it is that the members need you know, the credit union employees are more than happy to help them out with.
Jess:Absolutely, I think my trigger number I think my sister went in for she was again, talking about your car loan example, my sister's going in, and she was looking at like the different loans like what the dealerships were offering, what the banks are offering, what the credit union was offering. And she went in to go have, to talk about auto loans; she actually left having refinanced her student loan to save herself money because she and the woman that she was talking with, was talking to her about her like, you know, credit score and her debt to income ratio, and all that fun stuff. And, you know, they got to talking, she figured out that like she could save my sister some money by consolidating her student loans and rolling it into one. It'll lower her interest rate, what I'm like, wow, like you, you want him to go, like you said, look at auto loans, and you come out saving money on something that you were already paying.
Carole:Exactly. And that's, that's the beauty of a credit union.
Jess:I just, it was one of those things where I was like, wow, I don't know that that would have happened anywhere else.
Carole:Exactly, exactly.
Jess:Yeah, and I know you said that, like it is I think credit unions do a good job of, you know, education, educating people about finances and what things mean. I think, especially this last year, with everybody being home, I think it's just been a perfect storm, everybody being home. I know, I have been on social media more than not, I actually, like started looking at for work, obviously. But then just for my own, just to peer around. There's a couple credit unions on Instagram, they're doing a phenomenal job of educating the age demographic of Instagram. So like that, you know, early 20s, to like, mid to late 30s on, you know, credit card debt and student loan debt and what a credit score means. And, you know, things we all probably should have learned a little bit sooner, but I was like, hey, there's no time like the present.
Carole:That's exactly right.
Jess:So another question I have for you, because I know, I feel like this is something that maybe not a lot of people know about. You guys have a what's it called better annual campaign, you call Better Values, Better Banking. Can you tell us a little bit about that?
Carole:Sure. That that's actually an initiative that we have at the Corporate Credit Union Association. And we we bring all of our member credit unions into it and let them get involved with it as well. And what it basically is, is to just raise credit union awareness. Because I mean, you've been a credit union member, you know about credit unions. Maybe your next door neighbor doesn't know. So we're just trying to bring that credit union awareness up. A lot of people don't have a clue what a credit union is, you know, or how you get to join one. So we're just trying to bring that up. And, you know, the thing of it is, is that we feel that the credit unions do have better values and better banking. So you know, we're out there to kind of spread the word and we do it through a lot of different ways that in the past, we've done some what we like to call lunch and learns where you know, we'll go to an organization or to a community center, and they can eat a little bit of a lunch and we'll discuss what credit unions are or we'll bring in a topic like elder financial abuse, and talk to them about that, how to prevent that. We've also done where we've gone with some of our credit unions' representatives, like just say to the local coffee shop, and for an hour, the association will pick up the cost of the coffee of the people who come in. And all we ask in return is that they take a minute to chat with one of the credit union representatives there about, you know, products and services that credit unions have. So we've done those kind of things. We call those in your neighborhoods, because we're in their neighborhood. And you'll find, you know, credit unions probably are in your neighborhood, because they are such a local based and then the communities that they serve. The people that work there live in those communities, the board members, which I don't know if you know, but our board members are volunteers, they don't get paid for being a board member. So they're from the communities as well. So, you know, it could be that your neighbor is, you know, chairman of the board. I don't know, but it's a possibility.
Jess:Yeah, I think that that's like another point of, you know, how credit unions I think are in communities and more involved with their members a little bit more is that, you know, they're, they all have board, Board of Directors. And they aren't always, you know, I feel like in the financial industry, a lot of people think like, oh, Board of Directors, that's like, you know, people who are not me. But I think with credit unions, it's very much yeah, you it's, you know, that your next door neighbor, who's retired, it's your, you know, the woman in the carpool lane when you're dropping your kids off at school, it's people who are very much in your neighborhood, and very much involved in your community financial organizations.
Carole:That's exactly right. And you are right. When you belong to a credit union, you basically join it, so to speak. There's some type of a share that you purchase, you don't really purchase it, it's basically held in your savings account. But it may it gives you membership in that credit union. And that membership gives you a vote in what's going on in the credit union at the annual meeting and things like that you can vote about different products, services, whatever, you know, there's it's always out there. But it also gives you the opportunity to be on the board of directors or be on the supervisory committee or on any of the other committees that the credit union might have. As a member, you know, you certainly are entitled to participate as much as you would like, in the governance process; you will not find that in the traditional banking world. Their directors are paid. So that's the big difference to begin with. And because they're paid, then, you know, the banks are trying to make enough money to pay those hefty salaries. Credit unions don't have that. So when when we get to the bottom line, and it's you know, what kind of income income came in this year versus expenses going out, the stuff that's left over goes back to the members whether it goes back in you know, more products and services that they can offer, whether it goes back in additional products and services. Some credit unions give back an extra bonus dividend in the you know, at the end of the year, maybe they had so much so they divide out between everybody, and maybe you get an extra, you know, $50 to $100 bonus dividend. You know, it just depends on the credit union. But because because they don't pay the board of directors like that they don't have to, they don't have to make that kind of money to pay salaries. So they're able to give back to their members. And they give back to their communities too, a lot of credit unions, as you said, are very active in their communities. And you will find, you know, the credit unions are there to support the fun drives, and they're there to support the little leagues, and they're there to support, you know, whatever's going on. Our states are four states that belong to the association, Delaware, Massachusetts, New Hampshire and Rhode Island. Each one of them has what we call our state charity. In Delaware, it's the Boys and Girls Club. So credit unions throughout Delaware come together to raise funds to benefit the Boys and Girls Club. And then our credit unions don't just stop there. I mean, a lot of them will also do Ronald McDonald House and you know, they'll do other charities that are going on local charities, you know, so they give back to the community in so many ways. And I, I know that, you know, banks, you know, give back too, you see, you know, banks making big donations and things like that, but I think with credit unions, I think the giving back is coming more from the heart. I really do.
Jess:I would agree with you 100%. I think I like made a point that hasn't even like occurred to me before that like the board like you said like board of directors at regular banks are paid member paid positions, where at a credit union, it's all volunteer based. I think that just kind of like circles back that you know, credit unions really are putting their members first by saying these positions aren't going to come like, we don't have to make a profit to pay for these positions. We want you guys to be actively involved in what we're doing here at the credit union level.
Carole:Exactly. Exactly.
Jess:I have one quick final question for you. Because this is something that I personally feel like is an untapped potential for a lot of credit unions.
Carole:Okay, credit unions, listen up.
Jess:Really, though, I, um, I, you know, coach high school students, and I coach them I, you know, coach, high school marching band. And I have found that a lot of them like, don't quite like grasp the same financial things that I was figuring out for myself when I was like, 23, 24 25. And something that I think is, so under underutilized is, you know, youth memberships and youth involvement, and even like, young adult involvement. So I have been saying for the last couple years, that I and I don't, and I know, it varies by credit union, because everybody's rules are slightly different. You know, while I know, most credit unions have scholarships for high school seniors, or, you know, seeing kids going to specific local schools, I was like, I would be, I would love to start seeing that involvement at an earlier age, when kids are in college, they're interested in finance, they're interested in, you know, potentially be going into banking, or, you know, going into, you know, finance, you know, offering internships offering a junior board, that's like one of my like, genius, my like, personally, I think is a genius idea, but offering like junior board members that can shadow actual board members, so they can see how a credit union works. Because I think for a lot of smaller credit unions, who are trying to grow their member base, involving the youth of today, because they will become the adults of tomorrow, at an earlier age, when you can get them involved and excited about something will be the key to kind of tapping into, you know, a growing membership base.
Carole:And you're right, Jess, it does depend a lot on the credit union. I do know that in Delaware, and you know, in this day and time with COVID, things have drastically changed. And I realize that, but I do know, in Delaware, that we have several of our credit unions, who are active in the high schools, whether it be going in and teaching, you know, financial ed, couple of the credit unions actually have bank at school programs, where the students are the tellers, they are the person, you know, taking the money and doing all of that. They actually run a little credit union a couple of days a week within the school for the students. So you know, that is kind of going on as well. Again, with COVID, that may have been restricted back a little bit. But I'm sure you know, once things open up, they'll become active again. I also know that a couple of the credit unions, it's not quite to the junior board, like you kind of suggested, but they do have credit union advisory councils, where they have youth from the community, who will come in and who will say, Hey, you know, in so many ways they can help the credit union to tap that demographic because, face it, that, you know, there's a whole different learning style there, you know, maybe it's gonna be through social media, which the older generation may not have such a good grasp on. Or it could be, you know, online learning. So, if it's a way that we can reach out to help and educate the younger generation, we want their input to say, how is it that we can help you. We just don't want to go, this is what we're gonna do. We want to know what you need us to do. So a lot of credit unions, some credit unions do have, you know, those advisory boards, so you're not barking into the wind there. It is a valid, valid thing. And there are there are credit unions who are kind of addressing that as well. So yeah, that's a great, great thing to have and you know, it's it's kind of like Like you said, though, it's, um, we're facing something and you know, what, what I call the graying of our credit unions, the the people who founded them are getting older, you know, they're aging out of it, so to speak. And if we don't get younger people involved and excited and impassioned about credit unions, the credit unions will, you know, slowly fade from existence. And then I can't I would hate to think of a world like in, you know, 50 years, 100 years where, you know, it's like, well, what's a credit union? Well, let's go look it up on, you know, this ancient, you know, education website, because, you know, Wikipedia is gonna come up with what it was way back when, you know, I just hate to think of that, because I think credit unions fill such a vital role in the community. They're there for the members, regardless, and it's like, during these times, and in other times when times are hard and economic times are hard. Your credit unions are the ones who stand by the people, you know, they're giving out the loans that the banks are staying away from, they're backing the members who have a dream, but it's not big enough to be handled by the bank's business area or something like that. So they don't they don't need the $3 billion loan, they just need the couple 100,000 or the couple 1000, even, you know, and the credit unions are the ones who are there, you know, making those dreams come true. They're helping the first time homebuyers who may be you know, I'm not going to say they got a sketchy credit history, but, you know, maybe they just don't know, enough, you know, so they're out there helping them, they're helping them make their dreams come true. But even that, you know, 16 to 18 year old once that first car, you know, the credit unions are there for that, too. So, you know, the banks necessarily aren't, a lot of them are but you know, there's too many more of them that aren't, it's just kind of underneath of their radar with the dollar values that are involved. And with credit unions, it's it's not the dollar value, it's the human value. They want to see the people succeed, they want to see the people thrive, and become productive members of society.
Jess:Yeah, I that you wrapped up everything. I love that. I love that it's not the dollar value. It's the human value. I'm gonna like put that on a t shirt or something.
Carole:I think
Jess:It sums up, I feel like that sums up what credit unions are, is they're not, well, yes, they are a financial institution, they definitely put their members and their member values ahead of you know, like you said, maybe not a $3 million loan, maybe just a $300,000 loan to start that business, to buy that house to, you know, whatever you need to do with $300,000 or even $3,000. So, Carole, I thoroughly appreciate you chatting with me today. I feel like I learned stuff that I didn't know, I didn't know. If people want to find you if they want to find more information out about the CCUA, where can they reach you?
Carole:Well, the CCUA itself is ccua.org. So that's an easy enough one. And if anyone wants to get in touch with me directly, they can reach me through email and that's at clangiu@ccua.org.
Jess:Well, thank you so much, Carole, and hopefully we can have you back sometime soon.
Carole:I'd love to come back; anytime you want me just drop me a line.
Jess:Absolutely. Thank you all for tuning in this week. We hope this theory is relative to your marketing needs. Make sure you subscribe to get notified of our latest episodes.