If you don’t watch your money someone else will watch it for you, and then you may only have the opportunity to see it slip out of your grasp. There is more than one way to manage your personal finances and one of those ways is a federal credit union. The problem is credit unions have trouble gaining new members for a few reasons. CEO of Logix ( Lockheed Federal Credit Union), Dave Styler has discovered some of the reasons for this and taken major steps to address them. How major? Try completely rebranding the existing business. Sometimes customer service extends to serving people that aren’t even your customers yet. Dave was kind enough to give us a peek into his intentions in an effort to communicate some of the reasoning behind the change.
As of July 9th the institution formerly known as Lockheed Federal Credit Union is to continue operations as Logix with the tag line ” Smarter Banking” almost always adjacent to its name. In function the credit union will not change much but will undergo a remodel of its web banking application and total marketing redesign. Some will question if Logix is going through a mid-life crisis, seeking a younger demographic and abandoning their heritage members but Dave definitively says,”No.”
Instead, the decision is one made with the consideration of the existing members whole heartedly in mind. Not only is Dave thinking about the “LockheedFCU” era members because he is an executive but also because he is also a former Lockheed Aircraft employee. The structure of a credit union is such that every member has a share. Even speaking with Dave, he never used the word “customer” to refer to the individuals he services.The correct term is member/owner.It is concepts like these that tie the credit union to their community where a national bank is often bureaucratic and impersonal. “You don’t generally find as many ethical issues at credit unions.There has been so much of a wholesale manipulation of financial services in banks where we don’t have to show anyone we are making our numbers.”
That is not to say credit unions are on easy street. They must continually compete with inflation and with banks for business as well. Banks have traditional investment structures which often avail them much greater cash flow for advertisements, expansion and educating the public about their products. Credit unions are primarily word of mouth advertisers and that can be a drop in the ocean compared to some of the bank campaigns that are being rolled out. Facing these challenges is one of the motivators behind the name change from Lockheed to Logix.
When it comes to deciding whether to change the name of a company that has been around for 75 years, the decision is not to be taken lightly. It came down to some serious testing and research. One survey showed that 80% of participants felt they could not join an organization with the name ”Lockheed Federal Credit Union”. It is more than just a mouthful. It is about the perception of the credit union as an obsolete vehicle for financial mobility in a world where speed is king. The strong ties to the aerospace industry were seen as a barrier, when the eligibility requirements for membership are not limited to Lockheed-Martin employees and dependents. This distinction is important in factor when you think about how your current the bank is servicing you. Would you prefer that the organization spend your money and needed capitol to acquire more customers or that the business adapt to meet the demands of the market in order to provide you with better service in the long run?
There is already a cost associated with educating people about the benefits of a credit union and the previous name had only compounded that difficulty. The decision to change the name was followed with some criticism. Many of the heritage members had held accounts with Lockheed Federal Credit Union for over 70 years and many are still employees of the Lockheed-Martin company. These concerns are understandable, as many businesses can forget their core customer in an attempt to grow. Dave imparts that growth is important but has not been mute in response to the various opinions. The CEO released his own email address after making the decision public and has maintained that accessibility on his twitter account (@logixbankingCEO)to articulate the company’s position and to ease any issues with its members.
Logix Federal Credit Union
340 Hollywood Way, Burbank, CA 91505
Monday – Friday
9:00 am – 6:00 pm
9:00 am – 2:00 pm