A recent USA Today article, http://usat.ly/qCUh6O reports that a growing number of consumers are researching banking options, in an apparent effort to avoid the newest fee in banking - the debit card fee. For America’s credit unions, the big question remains just how many of these same consumers will actually switch their primary banking institution?

Motivating consumers to take certain actions is at the very essence of a successful marketing campaign. Identifying these consumers through database marketing strategies, understanding them, and communicating with them on a level that makes them understand you “get” them – at just the right time – is the recipe to conversion.  Many other factors (convenience, services offered, rates, locations, hours… just to name a few) will come into play when a consumer considers a switch.  So, the fee alone may not be the golden key for conversions that I suspect some credit unions are hoping it will be. Before you know it, the debit card fee will be remembered as another impulsive trigger which motivated some consumers to change financial institutions. But as months pass by and consumers grow more tolerant of this new fee, the window begins to close and it will become more and more difficult to convert those consumers into member-owners.  Just think back to how many new fees have been created over recent years (3^rd party ATM usage fees, for example). Consumers were irate over those fees too when they were first introduced. Many threatened to leave their bank. How many actually did? As time went on, more banks introduced the fee, and more consumers became complacent with the fee.

As a former credit union lobbyist turned marketer, I’ve made a career out of motivating consumers and influencing behavior.  SourceLink has multiple solutions designed to help America’s Credit Unions identify and attract new members.  Check out our free whitepaper, “Take Market Share While The Window Is Still Open” at http://sourcelink.com/media/#knowledgeLink.  The debit card fee issue is certainly an advantage for credit unions and some small banks, but I don’t necessarily see this as the game-changer that some predict it will be.  A consumer’s relationship to a financial institution is complex. Changing primary financial institutions is an equally complex proposition.   The truth of the matter is, credit unions don’t need new bank fees to provide lift in membership. There are plenty of consumers looking for the value that credit unions provide. Identifying and communicating with them on their terms is the key to success. Let’s talk about your specific goals and develop a plan to get there. Your thoughts, questions and/or success stories about member conversion are welcomed!  Visit www.sourcelink.com