[Note: This article has been reworked since it was originally published.]

The number of banks and credit unions integrating branded personal financial management (PFM) platforms from providers like Mint and Jwaala have helped these startups become internet sensations almost overnight. Now RBC is offering a white label solution from Yodlee, which the bank has dubbed myFinance Tracker.

“myFinanceTracker is a dynamic, customizable financial management tool that allows users to turn banking information into valuable knowledge so that they can SEE and SEIZE opportunities.”
– RBC Canada

Much like other PFM solutions RBC’s myFinance Tracker automatically categorizes transactions, tracks expenses and provides advanced budgeting capabilities for all personal banking and credit card accounts. RBC says the new system will help customers better understand where they are spending their money. Users are able to set budgets, and will receive email alerts whenever they exceed their set limitations.

myFinance Tracker, which RBC believes is the first PFM tool in Canada, is available to all RBC clients at no extra cost.

RBC also timed the redesign of its online banking system to coincide with the launch of myFinanceTracker.

Regarding the decision to deploy a PFM solution, RBC cites a recent poll indicating demand for more advanced — yet simple — online banking capabilities. 20% of Canadians say they are looking for an automated way to access transactions that are simple and intuitive.

myFinance Tracker provides online banking customers with the following online capabilities:

Categorizing Account Transactions — myFinanceTracker groups similar transactions into categories such as “travel” or “grocery.” Includes some common, pre-defined categories, and users can define custom ones of their own. RBC bank account and credit card transactions are automatically loaded into pre-set categories.

Expense Analysis — All account transactions are displayed for each category and sub-category along with the budget limit, giving users an at-a-glance summary of their activity. myFinance Tracker also provides graphs and charts to give users the big picture and show them where their money is going. A pie chart breaks down expenses, so users can quickly see their spending habits.

Budgeting — Consumers will have the ability to clearly define their budget with a maximum spending limit for each category over a specified period. For example, a user could set a $200 limit for dining out. Users can add transactions and immediately see how they fit into their overall budget, so they can plan accordingly.

Money Management — Users have the ability to establish an account balance target for one or more accounts and an alert will be triggered when the balance of an account drops below set parameters. Users can also create printer-friendly reports.

Financial Calendar — A calendar view of past and pending transactions, myFinanceTracker shows all bills, transactions and account balances for the month at once.

Jacob Jegher, a Celent analyst writing in his company’s blog, points out what he sees as a significant shortcoming to myFinance Tracker. “RBC has committed a false start by deciding not to include account aggregation capabilities in the launch,” writes Jegher. “Potentially interested customers who try the service will be frustrated by this. Many of them have multiple accounts (including cards) at a variety of institutions, and the ability to view their complete financial picture is a must.”

ONLINE BANKING ACCOUNT CENTER
RBC strategically placed a banner ad inside its firewall, within its online banking account center.

SPENDING BREAKDOWN
myFinance Tracker shows users how their spending habits distribute by category.

BUDGETING VS. SPENDING
Users can easily monitor how much budget they have remaining in each category, and whether or not they’ve exceeded their spending limits.

CALENDAR
RBC’s myFinance Tracker lays out bills, expenses, deposits and other account activity on a visual calendar.

MANAGE BUDGET
Specify spending limits for each category.

ACCOUNT GROUPS
Users can create their own custom groups in addition to using the pre-defined categories provided by myFinance Tracker.

TD’s free mobile application allows personal and small business customers to bank from iPhones and iPod touches, Apple’s two most popular mobile devices. Insurance and wealth management clients can also use the app to connect with TD to perform a variety of inquiries.

Update: As of June 9, 2010, the application is also available for Blackberry and Android users.

The TD mobile application offers:

• North American TD Locator to find branches and fee-free ATMs (in the U.S. and Canada), and TD Waterhouse Investor Centers (in Canada only).
• An iPhone-specific portal so users can login to their EasyWeb online banking where they can view account balances, recent activity, view and pay bills, and securely transfer funds between eligible accounts.
• Small business banking customers can access their accounts, transfer funds, pay bills and review account balances and activities.
• Easy connection to TD Waterhouse agents to open accounts, get market quotes, and to place trades in English, French, Cantonese and Mandarin.
• Seamless connection to TD’s EasyLine telephone banking.
• The ability to connect with TD Insurance agents for quotes and claims.
• An Accident Toolkit from TD Insurance with information on what to do in case of an auto accident and an Accident Notepad to record details of the accident.
• One-touch links to all TD public websites.

TD has a nifty online demo that is both thorough, informative and instructional.

The application itself is available in both English and French, reflecting TD’s Canadian roots. There was no announcement about whether or not a Spanish version might be in the works for the U.S. market.

So far, the application has been rated by 262 users, giving it an average of 4+ stars out of 5.

According to Paal Kaperdal, Senior VP/Online Channel, TD has more than 4 million online banking customers and 850,000 WebBroker clients.

“TD’s new app is our initial venture and we will continue to enhance our offering with new features and for additional devices in the months ahead,” he said.

In 2008, one of Canada’s larger credit unions, South Interlake in Manitoba, decided to change names and become Sunova. Why? The credit union wanted to make the organization “a little brighter with a different name and fresh, new look.” In the two years since rebranding as Sunova, the credit union’s assets have swelled from $480 million to over $600 million — a compounded average growth rate of around 12% annually.

The old name ‘just didn’t suit us anymore’

South Interlake Credit Union’s growth strategy hinged on building branches throughout the Manitoba province where it was based. At the time of the name change, half of the credit union’s branches were already located outside the South Interlake area. The credit union said past member research and feedback from staff verified their conclusion: the South Interlake name no longer represented who the organization was.

This wasn’t the first time the credit union changed names. It started as The Stonewall Credit Union Society in 1955, then became South Interlake in 1968 following a merger with Teulon Credit Union.

The Sunova name was created from the words “sun” and “nova,” reflecting how the credit union sees itself today: a vibrant, innovative and friendly financial institution.

“We feel the name change really represents who we are,” Sunova marketing manager Vanessa Foster said in an interview in the Lac du Bonnet Leader. “‘Sun’ identifies the warmth of friendly staff while ‘Nova’ represents the company’s rebirth.”

“We wanted it to be short and sweet but we also felt the name should mean more than a combination of letters,” Foster explained.

“The circular symbol in our logo reflects a number of different interpretations of our name — sun, constant movement and star,” Foster said. “Feelings of warmth, friendliness, innovation and endless opportunities all come to mind.”

“Sun” and “nova” — words evoking beaches and warm weather — may seem like a strange choice for a credit union in Canada, but Sunova wanted a name that captured its brand personality and not its geography. Chevy’s Nova is notoriously celebrated as a major renaming faux pas after rumors spread that “nova” meant “no go” in Spanish. This modern myth has survived through the years, even though it isn’t true.

– – – – – – – – – – – – – – – – – – –– – – – – – – – – – – SPONSORED LINK – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Takoda, the D.O.G.

Meet Takoda. She’s Sunova’s official “Director of Greetings” (D.O.G). The Saint Bernard, has held the extremely unique position as four-legged greeter since 2006. She is a fulltime “employee” at one of the credit union’s branches, with responsibilities that include greeting members, sleeping, playing with kids, sleeping and occasionally providing some moments of comic relief.

“We have to admit, she does spend a fair bit of time sleeping on the job!” the credit union says.

Takoda, which means “friend for all” in Sioux, joined the team as part of a marketing effort to draw attention to the credit union. “We’re always looking for ways to be different here,” Foster told the Credit Union Journal in an interview. “We thought that having a dog in here would be unique.”

“We didn’t want a dog that you typically see on the street,” Foster said. “We wanted a larger dog that’s friendly, outgoing and good with strangers and children.”

“We have many people who come in regularly just to see the dog,” Sunova CEO Edward Bergen told the Winnipeg Free Press.

Bergen said the credit union is considering adding greeter dogs at future branch locations.

Bright ideas, vibrant future

Sunova currently has 23,000 members, 10 branches and upwards of $600 million in assets. But the credit union has big plans, starting with an expansion strategy that involves doubling the credit union’s BRANCH NETWORK by 2020.

“We plan to build one branch every year in Winnipeg for the next 10 years,” Bergen said.

The credit union just announced it’s building its first branch in Winnipeg, with another nine more on the way.

Sunova has recently started deploying “pod” style banking, where people are greeted by an associate when they walk through the door, then taken to a teller pod to conduct transactions.

Extreme Makeover: Banking Edition

Sunova says it developed its “unique, new brand identity to better reflect who we are and what we’re all about.”

“It is simply an approach to make our organization a little brighter with a different name and fresh new look,” the credit union said.

SUNOVA SHOP
The credit union partnered with Clear eTail to create an online e-Store. The shop is exclusively for members, so only they know what schwag, garb and other goodies lurk within.

You can download a PDF of this name change brochure for Sunova.

In no other industry do companies change names more often than in financial services. It’s not just due to mergers. Banks and credit unions voluntarily choose to switch monikers quite often. Below are some of the elective name changes financial institutions in the U.S. underwent recently.

Credit union sheds a common name

Old Name: Community First Credit Union
New Name: Magnify Credit Union

Reason: The credit union offers no real explanation, although it says the new name “reinforces our fresh, new focus,” which seems to be built around a slogan, “Simplify banking. Magnify life.”

Analysis: It was smart to make the switch. 525 credit unions are using “Community” in their name. Another 179 use “First.” These are two of the most commonly used in credit union names (see the full list here). There are eight other credit unions using the exact name “Community First,” including one with over $1 billion in assets in the same state.

The new “Magnify” name has positive financial connotations and appears to be available in the USPTO database in the financial services category, which is unusual for such a common, real word. The credit union has applied for trademarks on both its name and its slogan.

Score:

Transitioning beyond transit workers

Old Name: MBTA Employees Credit Union
New Name: Mass Bay Credit Union

Reason: The credit union has outgrown its single sponsor, the Massachusetts Bay Transportation Authority.

Analysis: Single SEG credit unions are becoming increasingly rare. It seems that serving one employer doesn’t suit credit unions with plans for future growth. At least this credit union trying to preserve some connection with its heritage by keeping the “Mass Bay” in its name.

Score:

Railway workers no longer driving growth

Old Name: Railway Employees Credit Union
New Name: Greater Ozarks Community Credit Union

Reason: The credit union says it wanted to make it more clear that membership isn’t limited to railroad employees.

Analysis: There was no future for the credit union if it continued to serve railroad workers exclusively, so changing names made strategic sense; they were dead otherwise. The new geographical name will probably not limit the credit union’s growth potential, and should be adequately suitable for the indefinite future. The word “Community” was an unnecessary addition, however.

Score:

Not ‘elderly’ anymore

Old Name: Elders Rural Bank
New Name: Rural Bank

Reason: A merger with two other banks presented the opportunity… but one can only assume the bank was itching to drop a crusty word like “Elders” from its name.

Analysis: Years ago, Rural Bank merged with Elders Bank. Then, more recently, Rural Elders Bank merged with Bendigo and Adelaide Bank. The less-than-sexy “Rural” name probably works well with the rugged outback Australia communities the bank serves.

Score:

We’re dedicated

Old Name: Darlington County Bank
New Name: Dedicated Community Bank

Reason: The bank says it decided to change its name and slogan as “a way of restating our commitment to our customers and our community.”

Analysis: PRO: They kept the bank’s acronym, “DCB,” by reverse-engineering a new meaning, so they don’t need to change the logo or web address. CON: The bank’s rationale sounds pretty shaky. You can “restate your commitment” without changing names. In all likelihood, the bank needed to expand beyond Darlington County, but concocted a story and picked a name that would be as painless and objectionable as possible. Too bad the new DCB name is a basically bland.

Score:

We’re cooperative… and a credit union… did we say we’re co-op?

Old Name: Puget Sound Energy Credit Union
New Name: Puget Sound Cooperative Credit Union

Reason: The credit union wanted a new name to reflect its expanded charter. It now serves anyone, not just employees of Puget Sound Energy.

Analysis: It’s an interesting choice to add the (redundant) word “Cooperative” to the name, as 36 other credit unions have also chosen to do.

Score:

Big brands cause credit union naming complications

Current Name: EDS Credit Union
New Name: InTouch Credit Union

Reason: EDS (the company, not the credit union) was purchased by Hewlett-Packard a while ago. Also, sources suggest that EDS lawyers requested the credit union divorce its identity from the corporation.

Analysis: The credit union had been discussing new names internally for over four years, so the move comes as no big shock. EDS probably gave the credit union a heads-up a few years ago by saying along the lines of, “Hey, would you please change your name at the next/earliest opportunity? Thanks!” Hewlett-Packard probably plans on killing the EDS brand sometime soon, so this eliminates one part of the EDS legacy.

Credit unions like those affiliated with big brand names like John Deere and Weyerhaeuser have been asked to change names. It has nothing to do with trademark infringement and lots more to do with bigtime corporate lawyers zealously protecting their clients brand names. It doesn’t appear that there was any pressure from EDS for the credit union to change names, nor does it seem the credit union bears any grudge.

InTouch appears to be available at the USPTO’s online trademark database. The name, however, has the waft of presumption: “We’re in touch with [you, reality, our feelings].” Any member with a gripe will be tempted to lob the obvious insult: “You guy think you’re ‘InTouch?’ You’re outta’ touch!”

Score:

No, we are not the Bank of Canada

Old Name: Canadian State Bank
New Name: Bank of Commerce

Reason: 1.) People were confused. Based in the Yukon’s Canadian County, the bank routinely received the type of questions that would normally be asked of a state-run government bank. 2.) The bank may someday consider opening branches outside of Canadian County.

Analysis: The name is about as boring and as common as they come in the financial industry, which will create online search issues. At least Canadian State Bank sounded Big and Important. Fortunately, it’s in a rural area where everyone knows all the available financial players.

Score:

From one community to three cities

Old Name: Kennewick Community Federal Credit Union
New Name: Tri-Cities Community Federal Credit Union

Reason: The credit union expanded its charter to include additional counties.

Analysis: Geographical names are only good for one thing: clearly defining your target audience. But what happens when you grow? You have to change names… which is exactly what this credit union will have to do — again — if it ever grows beyond the “Tri Cities” region. Also, the pairing of the singular “Community” with the plural “Cities” is a little awkward in the name. What does the credit union gain by adding the

Why are there five “branches” in a logo for an organization named “Tri-Cities Community?”

Score:

State charter means bank is no longer ‘National’

Old Name: First National Bank of Montana
New Name: First Montana Bank

Reason: The bank switched to a state charter, so it dropped the grandiose and inaccurate “National” from its name to reflect the bank’s focus solely on Montana.

Analysis: Sure, there are legal requirements when you switch charters, but it’s expensive to change names, whether you change the whole thing or just drop a single word. Hopefully the advantages of having a state charter outweigh the expense and disruption.

Score:

Members from hydro plant evaporating

Old Name: Bangor Hydro FCU
New Name: Changing Seasons FCU

Reason: The Bangor Hydro Electric Company had been “down-sized,” so the credit union had to get a community charter and new name.

Analysis: The credit union said it picked the new name because “we want our members to know that we are here for you in all the seasons of your life.” But some people are uncomfortable with life changes, preferring stability over fluidity. And how will Seasons FCU in Connecticut and Four Seasons FCU in Alabama feel about a credit union in Maine picking a similar name like “Changing Seasons?”

Score:

For all life’s needs

New Name: LifeStore Banking Insurance
Old Name: AF Bank

Reason: The bank sees itself as something more grand than just a mere financial institution. It wants to be a “retail store for life.”

Analysis: This is the 15th name change the bank has undergone in its 70-year history. That’s a new brand consumers have to become familiar with about ever 4-5 years. This latest name is certainly distinct, but it’s somehow strange. It feels more appropriate for a New Age bookstore than a financial institution. While the name may reflect the bank’s brand strategy (something about how money intersects with people’s “life stages” and “life plans”), one can’t help but wonder if there wasn’t a more subtle way to make this connection in a name.

Why is the word “Life” so crudely rendered in the logo? Will the bank’s branches look like “retail stores? Or will they look more like regular bank branches?

Score:

Trouble brewing on ‘River Bank’

New Name: RiverBank
Old Name: Lawrence Savings Bank

Reason: The old name was geographically limiting. The bank says it is “honoring its past” by picking a new name alluding to the Merrimack River Valley it has served for the last 138 years.

Analysis: There could be big trouble brewing. There is a River Bank & Trust in Alabama that has held a USPTO trademark since 2007. It doesn’t matter that Alabama and Massachusetts are miles apart. Nor does it matter that the names may be spelled a little differently.

Federally registered trademarks cover the whole country, and infringement suits address consumer confusion. If the Alabama bank presses the issue, they will probably prevail.

Score:

Trademark infringement lawsuit…16 years later

New Name: TBD
Current Name: MidFirst Credit Union

Reason: MidFirst Credit Union in Ohio may lose a pending trademark infringement lawsuit recently filed by MidFirst Bank in Oklahoma.

Analysis: A quick check by Armco Employees Credit Union at the USPTO website back in 1994 would have stopped them from picking MidFirst as their new name in the first place. The search would have shown that MidFirst Bank holds four separate federally registered trademarks for “MidFirst” with the USPTO, with one dating as far back to 1987. Of course, the courts may wonder why it took Midfirst Bank 16 years to file suit.

Two credit unions merge, new name needed

New Name: TBD
Current Names: Australian Central Credit Union, Savings & Loans Credit Union

Reason: The second- and third-largest credit unions in Australia are merging. They have already decided they aren’t going to keep either name going forward.

Analysis: This is a solid strategic decision. Neither name is distinct nor worth retaining. More importantly, if one credit union’s name survived, members of the other credit union would feel inferior, as if their credit union was taken over. Whenever similarly-sized organizations merge, a new name should always be considered.

Reviewed and written by Jeff Stephens, CEO/Creative Brand Communications

Servus Credit Union, the third largest in Canada, has just about wrapped up its “Cash in with Your Camcorder” promotion, a make-your-own-TV-commercial contest highlighting the financial institution’s signature Young & Free Chequing Account.

The promotion is part of the credit union’s Young & Free Alberta initiative, a broad, multi-year “challenge marketing program” from Currency Marketing that has deservedly received much acclaim.

INTRODUCTORY VIDEO
An unshaven Myles Peterman, the 2009 Young & Free spokesperson, dons an undershirt while introducing the contest from his bedroom computer cam.

The Cash In With Your Camcorder contest invited residents of Alberta, Canada, between the ages of 18-25 to create 30-second video commercials about “why the Young & Free Chequing Account rocks.” Prizes included a $2,000 grand prize, and a $1,000 second place prize.

“You could buy an airport for that,” observes 2009 Young & Free spokesperson Myles Petermen says. “It would be made of Legos, but it would be an airport.”

In addition to getting cash, winners may also find their videos used in future advertising.

CONTEST ENTRY – “FINANCIAL IDOL”
This submission comes from the previous Young & Free spokester, Larissa Walkiw. The singing trio in this video uses the same stick-figure style as the video that catapulted Ms. Walkiw to international credit union fame back in 2008. With over 75,000 views, Larissa’s “The Difference Between Banks & Credit Unions” is the most-watched YouTube video in the credit union industry…worldwide. If you’re one of the few that hasn’t seen it, you should take a look.

Launched in late October, participants have been submitting their home-made commercials to the credit union. The credit union provided a “starter kit” of standard elements and other video graphics (such as logos) to help contestants with their entries.

People were able to vote for their favorite submissions on the Young & Free Alberta site through the month of November. Winners will be announced on Friday, December 4.

YOUNG & FREE ALBERTA MICROSITE
Shown here in the voting phase of the contest.

MARKETING MATERIALS

In addition to promoting Cash In With Your Camcorder on the Young & Free website, Peterman also pushed the contest on the Young & Free Facebook page (278 fans) and Twitter account (720 followers).

The Young & Free Chequing Account, available to the 17-25 year-old Alberta crowd, features free and unlimited withdrawals from network ATMs, account transfers, point-of-sale transactions, cheques, bill payments, and more. It is positioned as a simple and easy-to-understand product for those just starting to manage their own finances. The product is unique among Canadian financial institutions who seldom offer free chequing accounts.

There is an online application for the Young & Free Chequing Account integrated directly into the the credit union’s microsite that is so fantastically simple, you’ll have to see it to believe it.

Analysis

• The primary benefit of the campaign for Servus Credit Union is the super cheap marketing they get for their youth account. Giving away $3,000 in prize money is much more cost-effective than having a professional commercial made.
• The secondary benefit is increased website traffic and word of mouth, since contenders will be pushing all of their friends to visit the Young & Free Alberta site and vote. It’s highly a engaging promotion, regardless of the number of submissions.
• Contestants are in it primarily for the cash prize and the shot at getting their creative work used in real advertising. For former spokester Larissa, who is currently pursuing a degree in film, having her ad used by a company for commercial purposes would look good on her resume.

Key Takeaways:

If you’re going to hold a “make-your-own-TV-commercial contest,” there are a few things you should learn from the Cash In With Your Camcorder promo:

1. Consider defining the specific focus of the commercial, as Servus did when they asked contestants to concentrate on the credit union’s unique chequing product. If you don’t provide a range, then you better be prepared to receive entries encompassing the full spectrum of possibilities — loans, savings, checking, brand… who knows?
2. Provide your logo, slogan, colors and other creative resources to assist entrants with their submissions. This also helps create a standardized framework or “visual vocabulary” for entries.
3. Never promise the winning video will run on TV. With any kind of online vote, you can never be sure of the turnout, so don’t obligate yourself to publicly running a commercial that would make you (and your CEO) uncomfortable. You can entice contestants with the mere possibility that — if their submission is appropriate — it may actually air.

Bottom Line: All in all, Cash In With Your Camcorder is one of those smart contests where the winners benefit, but the credit union gains even more.

———————————————————————————————————————————
About the author: Jeff Stephens is founder and CEO of Creative Brand Communications (CBC), a full-service bank and credit union branding and marketing agency. CBC helps financial institutions find their story, tell it, and most importantly, prove it.

The fairfees.ca microsite has a petition signed by as many as 6,000 Canadians.

ING Direct is trying to ignite a populist revolution in Canada over big bank fees. The project, built around a microsite at www.fairfees.ca, is something the online bank describes as “an active and growing community dedicated to challenging and improving the fairness of Canadian bank fees and service charges.”

“Together we have the power to change things for the betterment of Canadian savers,” the microsite says.

ING Direct’s microsite has three primary sections: Listen, Speak Up and Act. In the “Speak Up” section, there’s a petition that you can sign. It has apparently been signed by over 6,000 Canadians.

ING Direct is keen to point out that its “Fair Fees” initiative is “not a sales pitch, it’s a knowledge pitch.” However, there is a subtle marketing message sprinkled here and there; ING Direct wants “Canadians to know they have a choice” when it comes to banking.

This is the second time this year a financial institution has launched a major campaign targeting bank fees in Canada. Three weeks ago, The Financial Brand wrote about Coast Capital Savings tongue-in-cheek “I Love Fees” promotion which had a similar populist take on big bank fees.

“The national banking fees system seems ripe for a takedown. But such a takedown won’t come from one bank launching noisy, imprecise volleys against other banks.”
– Matt Shepherd, Writer

This isn’t the first campaign from ING Direct with shades of a revolutionary political campaign. Last year, the online bank created its “We The Savers” manifesto and microsite.

Key Questions:

• Should a populist revolution have a corporate sponsor?
• As writer Matt Shepherd wondered, is this a “paper-tiger diversion that lets people feel like they’re taking action but has no real effect,” ?

“Listen”
Peter Aceto, self-described “fee crusader” and CEO/ING Direct Canada, delivers this speech in a video.

“Speak Up”
Tell ING Direct how you feel about bank fees, then view the “FEElings” of others.
(Note the Facebook, Twitter and YouTube icons at the bottom-right of the window.)

Full Page Ad
The campaign was launched in mid-May with this ad (click to enlarge)
in newspapers like La Presse, The Globe and Mail and the National Post.

ING Direct Canada has at least four different accounts on Twitter. There’s the Superstar Saver stream, plus two accounts for the Fair Fees project (one in English and another in French). ING Direct Canada’s Aceto has over 1,500 followers on Twitter.

ING Direct Canada has its own YouTube account where you can watch the inaugural video for the “Fair Fees” initiative.

$4 million severance one day… $474,000 salary the next

Steve Blakely joined Servus Credit Union back in March 2007, a little more than a year before the 3-way marriage between Servus, Community Savings and Common Wealth Credit Unions.

The merger, which received tremendous support from members who voted overwhelming to approve it, was the largest ever in the credit union industry, resulting in the third largest credit union in Canada and the first to canvass an entire Canadian province.

Key Question: Would members have been so enthusiastic about the merger if they had known their CEO would receive an enormous severance package?

“Unbelievable!! Where was this information when the merger talks were happening?”
— Comment on Edmonton Journal article

Blakely got $3.6 million. Why? Well the board of director’s asserts he was no longer the CEO of Servus when it was amalgamated into a new credit union and was therefore legally entitled to a severance package.

So Blakely was out of a job — fired, as it were — when his credit union was merged away.

But then Blakely was immediately rehired as the CEO of the newly merged, three-way credit union. The name of the new entity would be… (drum roll) …Servus Credit Union. Blakely’s new salary? $474,000, pumping his overall 2008 compensation up over the $4 million mark.

Reality Check: $4 million is a lot of money by any measure, but in credit union land, it’s considered a king’s ransom.

To put it in a regional perspective, the average professional playing in the NHL makes around $2 million. And these guys are the heroes of Canada.

Key Question: Blakely kept his job after the merger, so why was severance money paid? Or, as one reporter phrased it, “If you are rehired the next day by essentially the same outfit, why do you need or deserve a $3.6 million severance package?”

The board also gave itself a nice raise. The average compensation for a “volunteer” board member swelled to $59,000, up from $18,000 in the year prior to the merger. One volunteer board member’s pay, presumably the chairperson’s, jumped from $38,000 up to $103,000.

Overall, compensation for board members tripled, up from $339,000 in 2007 to $947,000 in 2008.

Side Note: The Edmonton Journal recently reported that income for Servus Credit Union was down 3%, or around a $3 million difference from the previous year. The credit union attributed a large chunk their losses to the cost of the merger. It’s not hard to figure out why.

Predictably, members are outraged

“The merger was orchestrated by the three CEO’s to feather their own nests.”
– Comment on Edmonton Journal article

When the compensation schemes from Servus became public, the story lit up the phone lines at radio talk shows and spread across the Canadian internet like wildfire. Articles and blogs received hundreds of angry comments from both members and employees. One article in the Edmonton Journal received over 200 comments, while another at the CBC website caught 80+ comments.

“I have never in my life heard of a contract that allows you get severance plus the job,” one upset member commented.

“How could the board give one staffer 8% of the year’s profits, diminishing the dividend for the other 400,000 members?” another observer wondered.

Someone else echoed this sentiment. “A system that pays one guy $4 million while splitting the rest of the profits among thousands of co-op members is a system that’s just broken.”

So much for the promises of a golden future under the umbrella of Canada’s largest, single-province credit union. Never mind the millions that was paid to Servus members last year in the form of dividends. All that goodwill is gone. G-O-N-E, gone.

Bottom Line: From the consumer perspective, this is one huge, ugly black eye for the Servus brand… and the brand for all credit unions in general. It will take years to rebuild Albertan’s trust in credit unions.

Some people have encouraged angry members to vote with their feet and take their money elsewhere. This seems like an odd suggestion, in light of the fact that members should be sticking around to vote with their votes.

“There is no difference between credit unions and banks in Canada any more. The whole idea of a credit union has been perverted and twisted to mirror banks. It’s all about PROFIT$$$.”
— Comment on CBC article

Blakely’s hasty exit

One person said what must have been on many members’ mind, “Mr. Blakely, you have your severance pay, so do us a favor and leave.”

Which is what Blakely will do. He will be retiring — presumably for good this time — on April 30. And one can only wonder if his first severance package will be all he’s taking with him.

As far as the other CEOs involved in the three-way merger… Well, the former CEO of Community Savings retired a while back. But it appears that Jeff Mulligan, the former CEO of Common Wealth, submitted his resignation last Friday alongside Blakely’s.

It is rumored that a “severance/merger bonus” was paid to all three CEOs for a total estimated cost to members around $10 million.

From the member’s perspective, this doesn’t quite sound like the bonanza of savings promised from the amalgamation, does it?

Employee morale in the doghouse

It’s unlikely the pressure to quit came from members. In all likelihood, it came from irate employees.

Blakely, after getting a $3.6 million bonus himself, recently told employees were told they may have to forgo bonuses this year. To put an even sharper sting on this, there were plenty of Servus employees whose only bonus in 2008 was a $50 gift card.

Needless to say, this has all left an extremely sour taste in the mouths of employees. Out of more than 200 comments on one Edmonton Journal article, most of them seemed to come from Servus Credit Union’s 2,000 employees. Some were disappointed. Others were outright furious. Most felt betrayed.

“I cannot support management any longer,” said someone identifying themselves as Paul, a Servus employee. “It’s going to take a lot of effort to win back the trust of many employees.”

“How are the staff supposed to look their member-owners in the eye and truthfully assure them that they work for a credit union that is serving the member-owner’s best interests?” another Servus employee wondered.

Since the stunning severance arrangement was brought to light, many of the Servus staff have been spending their time sympathizing (i.e., commiserating) with members. As one employee illustrated:

“Yes, Ma’am. Mr. Blakely is still running the Credit Union.”
“No, the Board of Directors are not embarrassed by this severance pay.”
“Yes, apparently, they are not worried about their reputations.”
“Yes, I understand you will be moving your accounts when you are able.”
“I’m sorry, I, too, use to be proud of my Credit Union.”

Apparently, there was an internal blog for all employees of Servus. It had been intended to help smooth out some of the bumps from amalgamating three separate cultures, but it was recently taken down by management after comments and concerns turned too negative.

“See what happens when you get off the internal blog?” one employee pointed out. “Now employees feel their only option is to air the dirty laundry in a public forum. Not smart.”

Before leaving his post (for the second time), Blakely responded to employees by telling them that his employment contract was an issue between him and the board. That probably didn’t do anything but hasten his exit.

Final Observation: The bigger a financial institution gets, the more responsibility it has to uphold the honor and ethics of its smaller brethren. This applies equally to banks and credit unions. Situations like this are nothing more than a lightening rod for bad press, undermining the trust and impugning the integrity of an entire industry. You could call it, “Too big to fail your peers.”

Financial Foresight: New Directions and
Opportunities in Visual Communications

This 52-page report from Getty Images, the world’s largest provider of stock photos, looks at the visual trends emerging in the new world of financial marketing. Getty predicts that risk will become a major theme played out in advertising over the next 18 months, and consumers will be increasingly attracted to images picturing balance, anchorage and security. The report includes dozens of ad examples from financial institutions like BECU, WaMu, Mastercard, NatWest, Visa, Citibank, KeyBank, HSBC, and many more. Download the report free here.

Marketsmarts: Social Media

An organization in the Canadian credit union industry examines how several financial institutions have embraced social media and expanded beyond traditional marketing and have successfully engaged consumers to think beyond rates and fees. This 25-page report includes case studies from TD Money Lounge, Vancity’s Change Everything, Verity Credit Union’s Our Voices, and Young & Free Alberta. Download the report free here.

Credit Unions & Social Media: Engaging Young Adults

A 19-page report from Filene, a progressive credit union think tank, looks at trends in social media and how it is growing to become a powerful marketing tool.  includes stats, research and graphs. Register and download the report here.

The First Credit Card

Another 9-page report from Filene. It explores the challenges and rewards involved in young adult credit card programs at credit unions. Register and download the report here.

Market Messaging During The Financial Crisis

Corporate Insight, a financial services research firm, looks at over 100 direct mail pieces from investment firms in October and early November, analyzing both the message and the medium. This 21-page report includes a number of examples from firms such as Fidelity, RBC, Oppenheimer and more. Download the report for free here.

Growing Deposits in the Digital Age

This new Online Banking Report sells for $595, but it’s worth it. Authored by Jeffry Pilcher, the editor here at The Financial Brand, the report includes 72 pages of ideas, tactics, and strategies to grow retail deposits while building your brand in 2009. Includes over 40 examples. Online Banking Report subscribers may download the report here free of charge. Others may purchase it here.

FirstOntario Credit Union recently launched a classic guerilla marketing campaign to reinforce a message of safety and strength. FirstOntario placed everyday items — such as bikes, park benches, fire hydrants and bubble wrap — in unexpected ways around key communities to drive home the message that the credit union’s short-term investments are “Extra safe.”

“Backup Fire Hydrants”
The signs all bear the headline “Extra safe.” Subheads say, “Guaranteed investments.”
The signs also bear the URL ThinkFirstNow.com.

“Bench with Seatbelts”

“Extra Bike Locks”

“Padded Tree”

The “Think ‘First’ Now” Website
A simple microsite with advice about how to save money on taxes.

“We anticipated we would
have some push-back
from the city.
We didn’t think
it would be out there
for too long.”
– Mandy MacPhee, FirstOntario

FirstOntario deployed all four displays in three communities, and three of the displays in five others. They also plus extra bike diplays in GO service stations.

In an article about the campaign, Mandy MacPhee, Director, Marketing Communications/FirstOntario, says the campaign was intended to show they are an “extra safe” choice in a time of economic turmoil.

After inquiries from a local reporter, the city investigated and told FirstOntario to remove the items promptly.

“We anticipated that we would have some push-back from the city,” MacPhee said. “We didn’t think it would be out there for too long.”

“Most displays were kept out for approximately one week before city officials contacted us,” Macphee told The Financial Brand.

The credit union went ahead with the campaign without city permission to get their message out “as quickly as possible.”

“We believe in communicating our message in a creative, fun, and interactive way in our communities” said Christine Zalzal, AVP Marketing/FirstOntario. “Since we are a community-based organization, we can reach out in a more interactive and personal way.”

A city communications officer said FirstOntario Credit Union won’t face fines.

In an interview with The Financial Brand, MacPhee said the main objective for the campaign was “to garner media attention and create buzz in our marketplaces, which in qualitative terms, achieved this successfully.” The credit union plans on conducting brand equity research later.

According to The Spectator, MacPhee says this is the first time her company has tried this form of marketing, but it likely won’t be the last. She says they’ll continue trying different “interactive” ways to get publicity.

FirstOntario has over $2 billion in assets, 68,000 members and 17 branches.

The campaign is the work of TBWA\Toronto. They have been FirstOntario’s agency of record since August 2008.

Key Takeaway: This kind of marketing shows how a radical idea can cut through the clutter, clatter and din in today’s marketing-saturated world. Some experts say we see as many as 3,000 marketing messages every day.

This creative idea comes to us from Prospera Credit Union in B.C., Canada. The credit union mailed out branded gel packs bearing the message, “Paying taxes is a big headache. That’s why we’re freezing them for 10 years. Introducing the Equity Share Offering from Prospera. Freeze and apply for immediate tax relief.”

Print materials explaining the investment opportunity along with a customized letter were sent in Mylar envelopes with each gel pack. The transparent Mylar envelopes allowed recipients to see the gel pack inside.

Prospera mailed nearly 4,500 packages to a pre-qualified list culled from the credit union’s 60,000 members. Each recipient received a follow-up phone call from Prospera.

Bottom Line: The total cost for the promotion was $42,475, with an ROI that bettered returns on two previous, more-conventional campaigns by 143%.

Tip of the Hat: Thanks to JP Jones for the find, and to Deliver Magazine for their article about it.

Here are recent stories of interest from around the web.
Click on the hotlinks to read the full story.

A Failure to Communicate: Survey says financial brands not saying enough

Ad Quandry: Financial firms not sure what to do, say in tough times

CU Later: Zopa kills U.S. P2P service involving 6 credit unions

1 in 3: That’s how many credit unions in California are losing money this year

Regional Banks: “We’ll take your deposits!”

Green$ense: Citizens Bank will pay you $120 for this green account

Ad Nauseam: Banks burned by their catchy slogans

Ad Slash: Deep cuts in financial firms’ ad spending

Canadian Confidence: Crash won’t crimp Canadian bank marketing

Quad Shot: 4 credit unions merging into 4th largest in Manitoba

How Much? Financial industry Web 2.0 research report for $12,000

Money Monet: Missouri bank opens “art gallery” branch

Tightwad: Could this be the best named bank under the circumstance?

Canadian-based Lakewood and Kenora District credit unions are merging under the new name “Copperfin.”

Last week, the members of both credit unions voted overwhelmingly in support of the merger.

The new Copperfin website touts the merger’s benefits and explains the name change. The homepage takes a creative slant on the merger:

BETTER TOGETHER.
Starsky and Hutch. Peanut butter and jelly.
Lakewood and Kenora District.
Some things just work better together.

When you put two great things together, you get something even better.
It’s about synergy. It’s about community. Most of all, it’s about solutions.
That’s why Lakewood Credit Union and Kenora District Credit Union
have joined to become Copperfin Credit Union.

Copperfin’s new design style is both distinct and refreshing, representing a big visual upgrade in the two credit unions’ brand identities.

The new slogan is “Enjoy life’s possibilities.”

Copperfin falls under the same category of financial names as Red Canoe. These kinds of names are highly unique and creative, they are very trademarkable, and totally unforgettable. Both Copperfin and Red Canoe are the work of Weber Marketing Group, arguably the country’s leading financial naming firm.

Some people have complained that such names make no sense for a financial institution.

Key Question: Who says what a financial name should- or shouldn’t sound like?

Reality Check: There are no rules. If there are rules, they will be summarily ignored by breakthrough brand builders.

Before you rush to criticize a name like Copperfin, just remember: Many of the world’s most successful brands have names that — on the surface — make absolutely no sense at all: Old Navy, Starbucks, Gap, Apple, Virgin.

Key Insights: Name changes are subjected to a level of scrutiny that existing brands never endure. There’s something irresistable about comparing an old name to a new name. And generally speaking, people don’t like change.

Here are recent stories of interest from around the web.
Click on the hotlinks to read the full story.

MELTDOWN FALLOUT

Marketing 180° “Credit” out, “saving” now in vogue as financial industry reacts

Another One Bites the Dust: Wachovia is the latest victim

Oh Canada: WIll one of the Big Six be next?

Chase+WaMu: Impromtu rebranding starts, ads planned

Stop the Presses: WaMu cancels all internet advertising

What the Meltdown Means: AdAge’s big directory of meltdown articles

FEATURE STORIES, OPINION & ADVICE

Interview: Wells Fargo’s Tim Collins is banking on social media

Gen-Y: A very meaty whitepaper and roundtable (PDF)

Insight: 7 videos to build your financial brand

Q & A: Massive interview with a Wells Fargo president

Not Dead Yet: But Barclays chief predicts the demise of plastic cards

Facetime: Video conferencing helps HSBC go green

NAMING

Bank X: This week your bank’s name is _____________ .

Sign Language: Blogger suggests bank needs a name change as it expands

The mystery is over. The name of Canada’s 3rd largest credit union will be Servus.

The credit union’s board chose the name because the Servus brand was created only 18 months ago, is recognized in the Edmonton market and can be trademarked.

Earlier this year, three credit unions in Alberta (Servus, Common Wealth and Community Savings) announced they were merging to create the third largest in Canada, with $9 billion in assets, almost 400,000 members, 2,000 employees and 100 branch locations. The merger left two big questions unanswered:

1. What will the name of the credit union be?
2. What will happen to Young & Free, the phenomenally popular Gen-Y promo from Common Wealth CU, one of the the merging credit unions?

In the comments of a previous post here at The Financial Brand, representatives from both Common Wealth and Currency Marketing, the agency behind Young & Free, reassured concerned readers that yes indeed, Young & Free would survive the merger.

The selection of Servus as the name comes as no surprise. First off, Servus was the larger credit union in the merger. It’s also a far more unique and interesting name than either of the other two options, Common Wealth and Community Savings, which are both fairly generic names. That’s what makes it possible to get trademark protection with real teeth. And the double-meaning behind the name is a nice touch: “service” and “serve us.”

Being able to secure a clean trademark is critical when changing names, a lesson some financial institutions frequently learn the hard way. (For related coverage on the pitfalls of financial trademarks, see today’s article from The Financial Brand on TD’s troubles with the Commerce name.)

Common Wealth and Community Savings have until October 31, 2008 to phase-in the new Servus name.

You can read the official press release here (PDF).

Return to Sender: Banks spent $13.4 billion on DM in 2007 and get $178.8 back

How Many: The ‘top 500’ financial brands ranked from around the world

Picture This: Put your own custom picture on this credit union’s debit card

Check Mates: B of A signs exclusive checking deal with Major League Baseball

Wi-F.I.: Credit union in Colorado is third in U.S. to offer free, city-wide wifi

Fast In Bed: Bankers race beds for hospital charity