FORUM Credit Union ($1.4B, Indianapolis, IN) does not pay out an annual patronage dividend. Instead, it looks to its products and services to reward members throughout the year for their participation in the credit union.
Andy Mattingly, COO, FORUM Credit Union
For example, the Weekly 5 Savings Account at the credit union gives account holders a shot at winning $5,000. In the 52 Week Money Challenge, the credit union matches up to $1,378 of a member’s yearlong savings. And the Sprout savings account for children includes an annual contribution of up to $100 from FORUM.
Here, Andy Mattingly, the credit union’s chief operating officer, discusses FORUM’s give back efforts.
How does the credit union determine how it returns value to members?
CU QUICK FACTS
FORUM Credit Union
Data as of 06.30.18
HQ: Indianapolis, IN
12-MO SHARE GROWTH: 3.3%
12-MO LOAN GROWTH: 11.5%
Andy Mattingly: Our giveback is based on product usage; therefore, there is not an annual trigger. We are trying to reward members along the cooperative principle that they get rewarded for more involvement with the credit union.
How do you calculate how much to return and to whom?
AM: This is completely based on the usage of particular products, mainly checking and credit cards.
What is the advantage of returning value in this way?
AM: We can directly connect the use of particular services to rewards members are earning. This encourages the behavior we desire, mainly use of debit and credit cards for payments.
What communication channels do you use to announce and communicate what you return to members?
AM: We regularly post our giveback report via social media, newsletters, and other marketing opportunities. We use our giveback in radio spots and on digital billboards from time to time, usually in a more generic manner.
How do you return the money? How much did you return in your latest round?
AM: We deposit the rewards on a monthly basis into members’ checking or credit card account. We rewarded members with $802,561 in the first six months of 2018.
This interview has been edited and condensed.
Whether and when a credit union offers a patronage dividend varies across organizations. As does how they calculate the return and communicate the occasion. Read more Q&As from CreditUnions.com’s ICU Day special feature.