TAPS: Interesting conversation about MySpace with Andy Mattingly of FORUM
Posted by Matt Dean on September 13th, 2006
At the end of a Lending Best Practices roundtable, Andy asked Paul of Hershey Federal Credit Union about the HFCU MySpace page (which he had heard about through CUES Techport). While Paul didn’t have much information because it is a very recent initiative, I asked Andy what his thoughts were. His general thoughts reflect a conclusion that we’ve come to—MySpace may represent an opportunity, but it can be dangerous if used poorly.
However, Andy did share an approach that FORUM is considering and which I think has a lot of potential. Their idea is to hire a college intern whose job will be to stay on campus and be the “credit union guy” on campus (no, not this credit union guy). All that means is that he will be a person that other students can come to if they have questions about debt, savings, or whatever other personal finance issues they may be facing as students who are just taking responsibility for their own finances. This intern could then have a MySpace and/or Facebook profile to expand his relationships.
I have two basic thoughts on this. The first is that I think it will be hard for an intern to become known as “the guy to come to” when it comes to personal finance. The second thought is that I wish I had handled my finances differently when I was in school and am still paying for those decisions (literally). So while it may be hard to reach that market, I think there’s an opportunity to help students at a time when they need it most.
What are your thoughts?
Matt,
You’re right on the mark with the thinking that young people just starting to handle their own finances are generally in need of some help and that credit unions have the ability to (and should) help them with it. The issue I think a lot of CU’s struggle with is reaching them with messages that make that connection happen.
Sure we have parents who bring in their soon to be college age kids, help them get what they need (checking, debit and credit card, etc.) but my sense is those parents are going to do a good job of helping their kids make the right decisions whether the CU is involved or not. (no disrespect to your parents or mine)
Building awareness and trust in a younger demographic has likely been a challenge for credit unions since day 1.
If myspace broadens a credit union’s awareness in that age group then its probably worth doing. I’m intrigued by FORUM’s idea of putting a young face to the credit union though I suspect they’ll have to use myspace, a blog or maybe a column in a student publication to really have the reach we’d like to see that face have.
Thanks for the post on this topic, Matt. I would like to share a related challenge that I am facing, and some things that I have considered to tackle the challenge.
The situation: We have a partnership with a credit union that would like to grow awareness and memberships among college students in their market. They barely have a budget for this initiative, so my focus to this point has fallen on an internship with specific feet-on-the-street and social networking efforts. Just FYI, we have yet to undergo any of these initiatives that we are discussing (1. an intern, 2. Facebook/MySpace, 3. speaking). Here are some of my initial ideas and thoughts:
1. Hiring an intern from one of the colleges in the CU’s market. - Even the job posting and announcements by advisors and professors will create some awareness… and I think the college kids will appreciate the opportunity. - An intern can spread the credit union’s message to friends and peers, and could have incentives for getting new student memberships.
2. Facebook/Myspace. - I agree with Scott that anything that builds awareness for the credit union is probably a good thing (assuming that the credit union takes the opportunity very seriously and shares a message that is consistent with their brand and provides a value to viewers). - Using social media, the intern can serve as a point-of-contact between students and the credit union, directing questions to the right people (as opposed to giving financial advice him/herself… do college kids trust other college kids for financial advice?) The intern has Facebook access, and can say on their profile, “If you have banking/financial questions or needs, contact me and I’ll get you in touch with someone who can point you in the right direction.” - The intern’s Facebook access can be used to run targeted, compelling advertisements to students at their school (small banner ads with a compelling offer may quickly show returns on the $5 a day cost). - The intern could be encouraged to blog about student financial needs, could share budgeting tools with students, etc. Instead of standing at a teller station or question desk, I would like an intern to be more empowered to help the college community. - From my experience with Facebook and MySpace, I feel that MySpace is far less student-centered, so a little less targeted (for my situation), and it is a bit more cluttered. - Are students going to look at a credit union’s profile on MySpace? If I were a college freshman (and not a financial services marketer), I think I may be as likely to look at MySpace pages about neighborhood dry cleaners as those about credit unions. I wasn’t looking for good rates when I was in school and had $20 in my checking account.
3. Speaking - I would likely give an intern responsibility for arranging on-campus speaking opportunities for representatives of the credit union. - Students need financial guidance, credit unions can provide it. - Offer to speak to classes, clubs, etc. about careers in banking, student loans, what a credit union is, creating a budget, buying a car, credit, identity protection, etc.
I like the idea of giving a college student an opportunity to make an impact for the credit union. I don’t think that it can be done through social media alone, but I think every possible step to build positive awareness is worth looking into. I’ll keep you updated on anything we follow through with. Please share your thoughts!