Save to Win’s Incentives Encourage Consumers to Join Credit Unions
The nation’s largest prize-linked savings program inspires members to build their financial security.
Financial education is a critical component of giving back—part of the Credit Union DNA. According to a Raddon survey, consumers are highly receptive to it, as well.
“Financial institutions have a powerful role to play in developing financial literacy today,” said David Irwin, president of Raddon. “A majority of customers who participate in a financial education program find value, and in a market that is intensely experience and relationship driven. Providing financial education can help institutions stand out and build depth with their customers. Closing the gap between customer perceptions of their own financial literacy and reality will help them develop the skills to build financial health.”
Resources are Great—Incentives are Better
Many credit unions already have financial education programs in place, but sometimes a blog, resource database, or even video series isn’t enough. These are great resources, but consumers often require an incentive, such as prize-linked savings programs. Prize-linked savings accounts are well-suited to credit unions and can help attract new members, assist members in building assets, build loyalty, and generate opportunities to cross-sell other relevant products. When used alongside other financial literacy programs, prize-linked savings can also drive positive saving habits.
Save to Win is the nation’s largest prize-linked savings program that assists low-to-moderate income members in improving their saving habits and financial knowledge by leveraging the connection between credit unions and their members.
“Save to Win is a win–win—for members and credit unions,” said Jason Smith, NWCUA VP of Strategic Resources. “Members build their assets and have fun saving money. For the credit unions, operation is turnkey. Strategic Link, through our partnership with the CU Solutions Group, helps credit unions with marketing, operations, and prize drawings.”
CU Solutions Group’s Save to Win program offers members a 12-month share certificate that allows unlimited deposits throughout the year. These deposits qualify them to win cash prizes monthly and quarterly. Opening the account only requires a $25 deposit—a relatively low barrier to entry, making it appealing and accessible to consumers with lower incomes. Account holders earn a raffle entry for every $25 deposited in the account, up to a maximum of 10 entries per month.
In Oregon and Washington, participating credit unions have helped members save more than $3 million dollars since 2013.
According to statistics from Save to Win, nearly 10 percent of participants say they joined their credit union solely to take part in the program, 62 percent have never held a CD before, and 65 percent say they are considering other products from their credit union. Demographically, program users are evenly split between millennials, Gen X, and baby boomers. The majority of users (78 percent) are considered financially vulnerable, with 66 percent unable to cover three months of expenses on their savings. Save to Win offers a great opportunity for credit unions to reach out to members and encourage healthy saving habits.
Incentive programs can play a vital role in a credit union’s financial education program, as well as introducing members to new products and services they may not otherwise consider.
How CU Solutions Group can Help
Your credit union is looking to attract new members. Banking customers, especially millennials, are looking to credit unions to help establish healthy savings habits.
Save to Win is a program that answers the needs of all credit unions and their members in a fun and financially rewarding way. Imagine being able to offer your members the chance to win cash prizes for saving money at your credit union. It’s a program where even those who don’t win the prizes win by getting into the habit of saving. And your credit union wins by delivering a unique program that helps you further demonstrate the credit union difference.