iDiz Incorporated

“Forget welfare queens. We’ve never seen an entitlement mentality quite like this-where bonuses were not rewards for work well done but guaranteed entitlements written into high-end contracts.” (John Avlon of the Daily Beast writing about the AIG bonuses)

People are no longer just depressed about the economy – they’re also ticked off. From bank and insurance company bailouts to bonuses written into employment contracts, public resentment has been growing over what appears to be favorable treatment for the same companies and people that screwed everything up in the first place. That resentment has been building for so long that it could blow any day. I don’t think it will turn into the locals gathering in the town square with pitchforks and torches, but people are angry. And growing more angry with every headline.

Rather than wonder who will be the target of all this anger when it does explode, I wonder how to redirect this anger into action. Specifically, how can Credit Unions use this to their advantage?

With people fed up with the banks and other financial companies, Credit Unions should be the obvious beneficiary. And granted, a lot of certificates have certainly found their way into CU ledgers over the last few months.

But has it meant new members? It takes a lot to get someone to decide to move all their accounts to a credit union. Especially when you think about that all-important checking account, or “sticky” products like online bill-pay. Moving something that complex is a hassle that will only be suffered when there is a good enough reason.

Now there is a reason. People are angry enough to look for a better option. They are also angry enough to make the move to that better option. So now is the time to point out that your credit union IS the better option to banks.

Even better, people are aware of what has happened, so you don’t even have to remind them of the headlines (which the NCUA currently frowns on anyway.) All you have to do is point out that banks need to earn profits to pay shareholders. Your credit union doesn’t have shareholders, and returns profits back to members through better deals – such as lower rates on loans, and higher interest on savings. So why would they still bank at a bank?

But what about the news of the implosion of U.S. Central and WesCorp? Isn’t this a bad time to tout credit unions? Not if you tell your story – instead of having the story told for you. If you’re not sure how to proceed, Jeffrey Pilcher of The Financial Brand wrote a great post on how to communicate to your members and the media. But the important point to remember is that Now is not the time to stick your head in the sand. Now is the time to grab market share.

As Andy Sernovitz on huffingtonpost.com points out: “This is one of those rare moments in history when entire markets are shifting. If credit unions were doing a decent job of marketing, they could grab a massive percentage of the market from banks.”