... "most asked for" "new/new" service!
😎 Got chastised a bit about not following through on this issue: "Anonymous March 2, 2025 at 1:08 PM Guess you decided that your anti rewards card posts weren’t as effective so you had to move on."
If case you missed the post on S&H Green stamps [link], "shopping rewards" have been around forever. Hope we can at least all agree that a "rewards credit card" is neither a new, nor original idea - this is definitely not "unicorn" country!. But it appears to be "the next big idea" at SECU!
✅ Is the one thing members most need from SECU right now really another credit card - rewards or otherwise [see post-link]? If on average every American already has 2.3 cards, what "value-added" will the "new/new" SECU REWARDS card bring to the membership? At December, 2024, SECU members carried 342,000 SECU credit cards with balances of $1.21 billion, compared with 317,000 at December, 2021 with balances of $880 million - a growth of @50% in balances is not too shabby a record, is it?
😎 To get started, let me ask you to think about a couple of questions. But first, lets talk about that "most often requested service" statement put forth by the "new/new". Haven't been able to find any record of an actual survey or polling of SECU members on this issue. Was afraid the claim was based on one of those infamous "raise your hands" inquiries frequently put forth by the "new/new" as authentic and statistically reliable. One member did email me an alleged copy of the following member survey:
✼✼✼✼ 2024 SECU Member Services Survey ✼✼✼✼
Would you like SECU to... (check Y/N).
1) Offer A Rewards Card? [Y/N], 2) Eliminate Loan Review Committees? [Y/N], 3) Prohibit you from speaking at the annual meeting? [Y/N], 4) Charge you a higher loan rate if your credit score was crippled by that nasty divorce [Y/N], 5) Enable you to wait longer on hold? [Y/N], 6) Lower savings rates? [Y/N], 7) Stop focusing on you and let anybody join? [Y/N], 8) Hold more Fireside Chats? [Y/N].
(Note: Should acknowledge, have been unable to independently validate the authenticity of this email.)
✅ But lets get on with the two questions you need to consider:
1) Is a rewards credit card truly the #1 issue the SECU Board needs to address now? If so, why? If not, what should be #1?
2) Why doesn't SECU offer a rewards credit card? After all it is "industry standard"!
... probably has something to do with that "1983 technology" which continues to keep SECU up and running.
No, not the #1 issue. It's the #1 requested product. There's a difference. No one said it was the CU's #1 priority.
ReplyDeleteThank you. 1) When/how was survey coducted?
ReplyDelete2). What is the #1 priority?
Are you saying that a vote or survey must be taken for every new product or initiative? Did we do one prior to rolling out tax prep? Insurance? The computer loans?
Delete12:58pm Good point! No, the point is not about asking as much as about claiming to have asked when it never happened...
DeleteOn the average balance per account, SECU ranks 69th in the country, 3rd in NC, and the average balance per member of ~3,450 is $500 lower than avg. card balance of the top 10 CU card portfolios. Conclusion? SECU members use their cards less than other comparative CU's. So the only question you should be asking is this: Given the member demand, should we let other CU's fulfill our members' product needs?
ReplyDeleteThank you. Take it you're saying SECU is $500 below "industry standard" and SECU should encourage members to take on more credit card debt?
ReplyDelete@12:14. Data shows SECU has 1/2 of the card penetration rate as other comparable CU's. Then, of those that have them, carry lower balances on average. Are 2.8 million SECU members inherently different consumers / borrowers than everyone else? No. So no, It's not about encouraging taking on more debt. The SECU member debt already exists, but it's on someone else's balance sheet. So am saying we want to encourage those SECU members that have debt, to have it with us at a better value/rate, and grace and help if they have a hardship.
DeleteAbout your precious industry standard. Facts: SECU is performing worse than industry standard on card penetration and balance utilization. Is getting to industry standard, especially when it that is driven by our members using our products instead of others a bad thing?
This month will be 2 years of race based lending, where's the influx of A paper loans that was used to justify discriminating against people?
DeleteEver done a debt consolidation loan? The member is paying someone else, "the debt already exists", so why shouldn't secu take on ALL the risk? Because 90+% of members don't change their habits and run the debt back up. How many members can afford double the debt?
Why not just increase the unsecured limit to 100k, after all "the debt already exists on someone else's balance sheet". If you ignore the massive increase In loan losses over the past three years, its been a HUGE success since it was raised to 50k. Just wait until helenes impact gets factored in.
This entire project may have, may have been wanted by some members, but it’s not the way of a CU. That’s my opinion as 18 year SECU employee. We should not be baiting members to spend more for perks that put more debt on them! Cost and fees for phantom prizes!
ReplyDelete@12:42.. sounds great, but not that simple. SECU members have the debt already. It's not trying to bait them into more debt. The debt exists at other providers, including credit unions. Not the credit union way, yet our members go to other credit unions to get products we don't offer. How do you reconcile that? Cash back and trips aren't phantom, also not free, but there is value in rewards. Ok to say not the SECU, but not ok to say it's the CU way. True unicorns are that way because they do things and have products others don't, not because they refuse to do things others do, while they force their members to go somewhere else. SMH
DeleteI have a rewards card somewhere else. They give me 2% reward. Other FI makes more than 2% off of interchange fee. I pay my card off every month so that I am not charged any interest. When you speak of, not the way of a Credit Union, most Credit Unions do offer them. For members that want a lower interest rate card, we will still offer that as well. Not sure I see any problem here.
DeleteThe way of the CU is to serve the needs of the members. If the members want a rewards card, they should add it. In 18 years you haven’t learned that?
Delete6:56pm 100,000 members wanted and were actually using tax prep... "If the members want...."
DeleteWhat happened to your alleged commitment to the member?
100k members is an extremely small segment and in lieu of the tax program SECU offers discount programs for TurboTax.
DeleteRewards cards only work for a very small percentage of holders. Data shows that the organizations make a lot more off of the fees than the cardholders gain in benefits! I also feel what the 18 year employee is saying, but choices for the membership to make that decision should be there with offering product options. Yes, the loss of Tax prep has hurt Person County and other areas.
Delete10:08am Should the credit union offer a member a service it knows will hurt them?
Delete10:36. Obviously not, but what's your point? Reward cards don't harm people that utilize them in the way they are intended. @10:08, LB said there will be no fee on the Rewards card.
DeleteLOL! The proposed survey questions are certainly more direct. I confess, I am a born skeptic and cannot help but think survey questions and multiple choices are manipulated to justify the author's agenda. Regarding the response options - important vs very important, could the service be eliminated if I did not choose very important. I had to pause for a while with the first question...how likely would I be to recommend SECU (didn't say it be thinking not nearly as likely as pre-Hayes). No, I do not want rewards card - I prefer a low rate and no annual fees! Also, the question about how important is a quality mobile app. Why would they even consider anything other than quality services? What does that mean? I think asking if we use the SECU mobile app and how do we rate the performance. I want it to remain secure and functional. Thankfully, there were 2 opportunities to freely provide feedback in the survey (effects of fluctuating credit scores and the importance of giving financial counseling with the best rate to members in need).
ReplyDeleteGlad they are asking questions. So, now I am hoping for the best. Also, thanks to this blog for the opportunity to express some thoughts about my beloved SECU. - Charity
There are transactors and revolvers. Balance growth is fine, but shows / proves nothing. Rewards users are more transactors. Tells what SECU members balances and transactions are somewhere else.
ReplyDeleteCalling members names now? "Transactors, revolvers"... the worrying fear about the "new/new" is that you are moving rapidly toward other monikers like pigeon, fresh meat, sucker....rather than member-owner, fellow human being .
Delete'They' are rolling out this product out because they want to have one victory for the new/new .... I mean how can you possible screw this up?
ReplyDelete@340 cards seems like a lot, but is only 12% of the number of members. SECU is 10th out of the largest 10 CU's in this metric, 19th of the largest 20th, and the average of the top 10 is 24.9%. 4th in NC. pretty good indication that offering a full product set to members will increase members' use of their cooperative. Would love to hear a reason why that's a bad thing.
ReplyDelete7:41pm We're working up to why it might be bad. Can see from the response that there is no way to alter your pursuit of being an average CU, but..
DeleteHow about answering the question about why the CU chose not to offer a rewards card? and...
Tell us what the "new/new" rewards card will offer to members... what are the features? What's the big secret?
Guilty. the average CU tries to determine members needs and then meet them with products and services. rewards is one of many examples where we know there is member demand, but we refused to meet it, and then happily let others do it for us. explain how that makes sense.
DeleteOnly feature of the rewards cards you need to know is that it will be optional for members. Don’t like them? Don’t get one, and then shut up. Who are you to sit in judgment and speak for those who want one?
DeleteMembers don't need another rewards card in their wallet, but members would like their CU not to make them get one somewhere else.
ReplyDelete7:42pm "Make them" - really?
DeleteIf the SECU rewards card is not better than those already available ... will SECU's lack of competitiveness "make" members go elsewhere?
Think savings rates... and the $5 billion in member deposits that SECU "made go elsewhere" in 2023.
SECU will offer a superior card, right? Or just mediocre, industry standard?
BTW has anyone heard the details on the "rewards" SECU will offer? What are they?
I have seen the rates on Rewards cards at other institutions, extremely high. According to one post, the rewards card user pays off the balance monthly with no interest charges and gets 2% back. I wonder what the percentage of cardholders can say they don't carry a balance forward. Couldn't you say that the users who carry a balance forward are paying for those rewards. Cannot help but think of an old quote - no there is no free lunch.
DeleteLike any product, the right fit is about getting good advice, full disclosure, and making an informed, responsible choce.
DeleteIt doesn’t have to be better than everyone else’s, just not uncompetitive. Members are loyal and want their products with us.
ReplyDelete9:09pm Your commitment to mediocrity is embarrassing.
DeleteAs one of 2.8 million members...we expect better... not "industry average"!
Average service and averrates are available all over... consider new career if you can't excel.
Wait, didn’t your other post say that we are not in competition with banks with the products that we offer?
Delete9:27pm That's right, if you're really no better than mediocre, average, just like everybody else... what value are you to the membership?
DeleteWhy waste time with a "cover band" credit union?
just incredibly weak logic. we offer auto loans and checking accounts and so does evceryone else. Should we not offer those products so we're not a cover band? You're being obtuse and won't address the core principle. Our members' needs believe it or not, have similarities to other credit union's members needs. So if we meet our members needs, and as a result offer something someone else does, does that make us a lemmings, suckers, mediocre? Talk about out of touch.
DeleteAnd your commitment to ignorance is pathetic
ReplyDelete9:30pm If this was about me - guilty!
DeleteReadily confess that I have an acute problem with ignorance.
par for the new/new course, '"profit" on others loss'...'
ReplyDelete