With all the hype surrounding social media these days, it's a little surprising that so few financial institutions are taking full advantage of what these online tools have to offer. Even now, despite countless published reports filled with commentary on ROI and member-centered value propositions, the vast majority of Credit Unions in the United States have failed to successfully integrate popular social media applications like Facebook and Twitter into their marketing strategies. In fact, there are literally thousands who have yet to even try! No Facebook pages or fans, no Twitter followers (much less posts) ... nada.

I suppose this apparent lack of interest could be the result of budget constraints (especially this year), but I suspect it's largely driven by fear. Most credit unions I've talked to who do not have a strong online presence don't push forward to develop one because they have no idea what will happen. In response, I consistently relay the same message: At a time when securing additional market share is critical to strengthen their position in an increasingly competitive marketplace, hiding from the internet is probably not the best strategy. How can credit unions hope to increase membership, reduce the average member age, improve non-interest income ... in short, GROW ... if they aren't willing to utilize the resources available to them?

Thankfully, there are a few industry players who are making serious waves in the online space. Credit Unions like Vantage CU in St. Louis, MO are setting new standards for how financial institutions can and should embrace Web 2.0 tools to provide as many value-added services as possible to their members.

Just this week, Vantage unveiled their new, custom built Twitter application called TweetMyMoney. With the new app, members can monitor account balances, deposits, withdrawals, holds, and cleared checks with simple tweet commands. They can even transfer funds between their checking and share accounts. It's all available on Twitter, 24/7 and best of all, the TweetMyMoney service is completely FREE and totally secure.

Vantage CU has raised the bar with the introduction of this new application - and they're showing no signs of slowing down any time soon. According to staff comments posted on the company website, there are additional plans in the works to develop a complimentary Facebook app and SMS and iPhone solutions within the next year. With every innovation Vantage (and other CUs like it) brings to the table, the credit union movement gains momentum, and the industry as a whole gets stronger. Despite that, however, smaller institutions that have remained "behind the scenes" so to speak need to start paying attention - as the industry grows (technologically), they risk getting left behind and losing potential members.

For these smaller institutions with fewer resources to apply toward developing custom applications like Vantage's TweetMyMoney, there are some great alternatives available. Two current options for making and receiving payments via Twitter are TwitPay and Twippr. Neither requires member registration or any disclosure of personal account information as they both piggyback off PayPal's secure online payment system. If members are already using these services, why not offer another free solution to help them?

CUs, it's time to start planning. It's time to get organized and develop a workable strategy to create positive long-term results for your organization. Just because the bigger institutions have made a splash doesn't mean yours can't too. If you haven't already, contact us today to help get you started with a cost-effective, results-based solution.

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