Vantage West Pivots With Its Digital Banking Brand

Sixteen months ago, Vantage West Credit Union ($3.2B, Tucson, AZ)  launched a digital-only brand aimed at tech freelancers and gig workers. It has since pivoted its approach to widen its reach and broaden its services.

The Arizona-based cooperative debuted HUSTL last year as a digital-only credit union. Other credit unions have launched similar virtual brands, including Dora from U.S. Alliance FCU and other partners, Coloramo’s Real One, and Michigan State University FCU’s Alumnifi. Similar to a field of membership, each brand has a specific target audience. Vantage West realized early on that if it wanted to grow the brand, it was going to have to hustle.

“Pretty early on we realized we needed to cast a wider net,” says Kelly Mobley, vice president of digital and payments.

What originally started as a project aimed at providing consumer accounts for tech gig workers and tech freelancers transitioned to empowering anyone with a side hustle and independent workers across all industries. That includes small businesses and entrepreneurs and highly skilled freelancers, or what Mobley calls “solopreneurs.” The product set also evolved from a focus on basic consumer accounts to incorporate things like business checking and savings, with invoicing and payment-acceptance tools rolling out soon.

The other big change was the realization that even as a virtual brand, the credit union needed boots on the ground. Even a credit union that offers only digital banking needs to get out and establish itself in in the community, Mobley says.

The credit union subsequently hired a market development coordinator who works with the community to promote HUSTL and leverages opportunities to connect with the brand’s target market, such as attending community events and workshops geared toward local entrepreneurs.

The expanded product suite was the direct result of hiring the market coordinator. That staffer repeatedly fielded question about whether business entities could establish HUSTL accounts.

“At the time we only offered consumer accounts,” Mobley says. “It came up so frequently that we realized this was a real need.”

The credit union subsequently worked with vendor partners at Nymbus to develop business offerings and marketing for business accounts, which rolled out in May of this year.

Happy Hours For Those Who Hustle

The shift to face-to-face brand-building also includes the launch of what Mobley calls “HUSTL Hours,” networking with Local First Arizona so small business owners and entrepreneurs can connect with one another and with the credit union.

“It’s a hustle,” Mobley quips. “Overall, this has been an opportunity to not only support entrepreneurs with the financial tools to run their businesses but also create opportunities to make connections within the community that will help them grow their business. Additionally, we are working on rolling out educational resources for members looking to grow their HUSTL.”

Mobley declined to share specific growth figures for the past year but says HUSTL continues to add members on both the business and consumer sides. It’s unclear, however, how the growth trajectory has changed with the addition of business services because Vantage West also rolled out a high-yield money market account at the same time, an “incredibly successful” offer that has led to substantial growth in membership and deposits.

Vantage West closed out the first quarter with year-over-year share growth of 8.61%, more than three points above its peer average for credit unions between $1 billion and $10 billion in assets. Unlike its peer group, member growth at Vantage West has been ticking upward for the past two years, finishing the first quarter at 7.58%. Its peers reported growth of just 2.85%.

Digital outreach via channels like LinkedIn has been part of the marketing strategy from the beginning, and Mobley says there are other channels such as Reddit that the credit union has yet to explore. However, word of mouth remains the biggest driver of growth.

“The entrepreneur community in Tucson is very tight-knit,” Mobley says. “A lot of the members or potential members we’re talking to out in the community are saying, ‘I heard about this from so and so.’”

Brick-And-Mortar Brand Recognition Matters

Vantage West initially planned to focus on HUSTL as a separate brand and a division of Vantage West, leaning on the credit union’s strong reputation in the market. However, organizers quickly realized people like that established brand and safety of a known organization, Mobley says. Discussions and marketing around the brand today more closely pair the two together.

Although Vantage West is based in Tucson, it has a reach into the Phoenix market, approximately two hours north. Organizers have also been leaning on the new market development coordinator’s connections with chambers of commerce in both cities as well as Phoenix’s entrepreneur community to help generate growth from each city. The credit union has yet to fully develop HUSTL’s lending opportunities, but they are on the horizon.

“We are primarily focused on member acquisition and building up deposits,” Mobley says. “While we’ve talked about expanding into maybe a small personal loan or a credit card, we’re not quite there yet.”

One of the biggest lessons from the past year, Mobley notes, is to lean on those who have been through this before. That includes not only supplier partners like Nymbus but also other credit unions that have launched brands dedicated only to digital banking. And the message there was that a brand can’t necessarily sell itself.

“You need someone focused on this brand — not your parent brand — and connecting with your target market,” the VP says. “As we were out in the community connecting with this group, we learned more about better understanding their needs. Connecting with that target market earlier in the process and understanding their needs is something we might do differently if we had to start again.”