Last week, I had a conversation with Karen Savickas Mathias, administrative and marketing manager for Southwest Research Center Federal Credit Union in San Antonio. Her institution has not been negatively impacted by the current crisis facing the financial services industry and, from what she told me, the San Antonio housing market is not facing the degree of upheaval being experienced elsewhere in the country.
Yet Mathias told me that many people in her credit union's membership base have been in a state of distress based on today's news. ‘We're already receiving calls because the mainstream media is not properly communicating who has been affected by this crisis and who has not,’ she says.
In response to what is happening, Mathias and her credit union team are taking a proactive initiative to inform their members that all is well. ‘We're communicating clearly and simply,’ she continues. ‘We're sticking to four key messages: our deposits are insured, we are well capitalized, our assets are diversified and we are rigorously audited.’
This message is being included in the credit union's quarterly statement (which recently went out in the mail), on its Web site and in the e-statements received by members who prefer to do their banking online.
I am calling attention to this example as a positive strategy that should be widely adopted by the industry. Today's news headlines have clearly scared the American public, and it is incumbent upon the industry to reassure their customers that a financial apocalypse is not at hand.Â
With very few exceptions, the U.S. financial services providers are not in threat of collapsing or being taken over by the Treasury Department. That may sound obvious to those of us within the industry, but to general public (that only knows what it hears on TV news programs or scans from newspaper and online articles), it is a message that needs to be repeated.
I can confirm that from personal experience. My mother was recently at her bank, and the manager told her that the branch was being bombarded with telephone calls from concerned customers that their deposits were safe. That branch, by the way, belongs to Bank of America – which is not exactly an at-risk institution!
For her part, Mathias says her interactions with other credit union marketing officers has recently centered around how to address the current crisis. ‘There's a lot of chatter and exchange within credit unions, with people asking, 'What are you saying? What are you going to do?'’ she says.
Southwest Research Center Federal Credit Union is doing the right thing: issuing a succinct, straightforward declaration that the institution is not at risk and the members' money is not going down the proverbial rat hole. For her part, Mathias notes her messaging not only enhances the stature of her institution, but also reinforces the image being put forward by the credit union sector of being risk averse.
In view of what is taking place, it is important for today's industry to effectively communicate that the current situation is not spiraling out of control. Individual companies need to reassure their customers (and investors, for that matter) that they will be around for the long haul and that every step is being taken to ensure bottom line stability.
The industry and the nation are ill-served by a climate of fear. Kudos are in order to Mathias and her credit union for driving home an intelligent and positive message. That example needs to be emulated on an industry-wide scope with all due speed.
– Phil Hall, editor, Secondary Marketing Executive.
(Please address all comments regarding this opinion column to hallp@sme-online.com.)
