By Ray Birch
TYSONS, Va.—PenFed Credit Union contends the CU movement needs to tell its story in more compelling ways–and it’s about to not only tell its own story, but that of all credit unions, as well.
That’s why the $23.6-billion CU has hired an Emmy Award winning journalist and purchased an advertising agency. As CUToday.info reported here, PenFed has hired Washington TV journalist Andrea McCarren to lead its new digital division, and purchased the 60-person WHITE64 advertising agency.
Under the terms of the agreement, WHITE64 will retain its name and operate as a virtually autonomous unit rather than an in-house agency.
CEO James Schenck spoke with CUToday.info about the new skills PenFed said it is seeking to acquire, and how those services will be available to all credit unions through a CUSO the CU is establishing.
“What credit unions need to do is tell compelling stories with the latest high-definition video with the right words, the right music in a tight concise script,” said Schenck, noting that just what McCarren did when she worked at WUSA9 Washington in her previous role. “Newsrooms are really good at this. In any given evening, in one short 30-minute broadcast, they may cover between 10-20 stories. Those two-three minute segments have to be well researched, have quality video and the right words and they must be very succinct. You have to capture the audience’s attention quickly, make that emotional appeal so the story stands out. That is why we think it’s so important to bring in an Emmy Award-winning journalist who has 27 years of experience capturing the emotions of her audience.”
How to Compete With Big Banks
Schenck said that is exactly what PenFed plans to do with its messaging in the coming years, and what the credit union movement needs to do to compete with the big banks.
“We can all double in asset size and together credit unions would still be smaller than the top two banks combined,” said Schenck. “JP Morgan spends more on marketing in one year than the entire credit union industry. Capital One—one of my big competitors—spends more on marketing by noon on January 1 than I spend the entire year. There is plenty of room for growth, and it’s not at the expense of each other. This is about taking market share from the banks, and to take market share you have to build awareness of the great value credit unions provide to their members.”
Many of the stories PenFed will be sharing will be carried over social media, a very cost-effective platform, Schenck reminded.
“Our members can then take those stories and share them via their LinkedIn, Facebook and other social media channels,” he said.
Compelling Stories
James Schenck, PenFed
Schenk emphasized that the credit union movement is not doing enough to tell the stories of the great things credit unions do for their communities. He said that PenFed has some very compelling stories to tell about the credit union and the national defense community and military heroes.”
“At PenFed, we support our nation’s heroes—our country’s defenders,” said Schenck, who noted that in addition to serving Department of Defense, active duty military and their family members, The $23-billion Pentagon Federal is also multi-common bond CU, serving agencies such as the Department of Homeland Security.
Schenck pointed out that McCarren won’t just be developing stories along with the team from the digital division.
“She won’t only be leading the PenFed digital division, she will be on camera, doing interviews for the stories with our servicemembers and their families,” explained Schenck. “It will be very similar to how she delivered her stories at the news station. I also plan to have Andrea at different industry events, interviewing our credit union leaders and out covering the major issues affecting our industry, such as the Military Lending Act, secondary capital … I think she will not only be a great resource for PenFed, I see Andrea as a great resource for the credit union community as a whole.”
A Lesson from Elton John
Schenck reiterated that PenFed will make content developed by the CU’s digital division available to the industry.
“This way we all can play bigger without having to spend, dollar for dollar, what the banks spend,” he said. “We can drive many more messages to the market. Credit unions have such a great story to tell, but sometimes I think we take for granted that 300 million Americans know our story. But we are getting there—I think CUNA is right on track with their Open Your Eyes campaign.”
But things can’t stay the same within credit unions if the movement is to thrive, insisted Schenck.
“I was just at Elton John concert. Even after 40-plus years, the video, the sound and digital production of that show was amazing. Messaging has to be eye-catching, and if the credit union movement is still playing the same notes, showing the same old videos, we won’t have the impact we need.”