What Does Social Media Mean for Credit Unions?

Social media, a catchall defining different internet platforms that allow users to generate content and interact, allows credit unions and fintech providers to build their profile and brand identities.

“The typical consumer has been well aware for some time now to not believe everything they read or hear on the internet,” Lynne Cornelison, research analyst for Lombard, Ill.-based Raddon, a Fiserv company, said in a recent study, “Payments Insights: Rise of the Digital Pioneers.” The current headlines about Facebook posts only confirmed that suspicion. “Yet for many, Facebook and other social media, remain a primary destination and an enormous source of information for consumers.”

Raddon’s research found 30% of consumers said information or advice found on social media influenced their product or service purchase. For financial purchase decisions, the odds increased to almost 40%. Nevertheless, although 34% of consumers will click on a product or service advertisement, if it is a financial institution’s product or service ad, the percentage of clickers dropped to 15%.

Raddon, which measured the effectiveness of all the major social media sites, found Facebook the leader by far, with almost 80 percent of respondents using it. However, a separate Raddon study from last year found videocentric Gen Z tuned more to YouTube. “That’s how they communicate,” Handel noted. “Different social media is more relevant for different groups and, and video is really the one that is emerging.”

Over the past several years, the $286 million Gadsden, Ala.-based Alabama Teachers Credit Union successfully amplified its social media presence, which began in 2009. The credit union developed an aggressive social media plan and put a marketing liaison team in place with representatives from each branch.

Emily Mayben, marketing director at Alabama Teachers, underlined the importance of using social media as a tool and dedicating a person to monitor and maintain social media accounts; especially for credit unions because of its community centric focus.

To help with their social media presence Alabama Teachers leaned on its digital banking supplier Malauzai for help. The Austin-based mobile and internet company provides a readiness toolkit with social media guidance to help financial institutions protect their reputation and brand.

Another organization, St. Petersburg, Fla.-based CUSO PSCU not only increased its corporate social media presence but also provides guidance to owners and non-owners. PSCU utilizes social media in a few different ways. For example, PSCU maintains a private Facebook employee group, created as a lifeline during Hurricane Irma. Additionally, PSCU also provides free social media content credit unions can use.

Islandia, N.Y.-based loan origination provider Teledata Communications Inc. uses YouTube to post training videos for its DecisionLender 4 loan origination platform. The videos cover audit trails, credit reports, balloon loans, notifications, advanced searches, stipulations, cross selling, dealers, credit groups, OFAC, and consumer loan origination.

Read the full article in the May 2 issue of CU Times.