The Pulse | 02-27-2018

Volume 7, Issue 9

The Pulse Archive

 


Launching the 2018 MNCUN Awareness Campaign

MnCUN is pleased to announce the launch of the 2018 Minnesota Credit Union Awareness campaign. As we move into the second year of the reputation and knowledge building campaign, MnCUN will continue to build momentum by maintaining our existing efforts that have been successful and amplifying our voice and specific points of credit union differentiation.

 

While the theme Choose Minnesota Credit Unions remains consistent, 2018 strategies will be enhanced to leverage credit union differences and address consumer misconceptions. Digital ads will continue to the be deployed to drive visits to choosemncu.org. Additional tactics will include events, traditional advertising, and social media. Our target audience remains focused on Millennials; and the media buy will continue to be spent 55 percent metro, 45 percent greater Minnesota.

 

We are launching our updated messaging and strategy by sponsoring Buz’n @ 102.9’s Buz’n Half Dozen concert today, Tuesday, Feb. 27. Featuring up-and-coming country acts, this event reaches our target and offers the Event Activation Components we are looking for:

 

  • Major digital and static visibility at the event in the campaign theme
  • DJ/Host contest and commercials
  • On-Air and Online Ads
  • “Snapify” / Photo Wall Sponsorship with artists, VIPS
  • Special offers for anyone buying tickets, parking or at the event for anyone who shows a credit union debit/credit card
  • Geo-Fencing / Geo-Farming ads around event center

We are in the process of developing a statewide event sponsorship calendar for the year.

 

Credit unions are encourages to provide any updates to the credit union location or services listing for the finder on choosemncu.org. Please use the Awareness Campaign Update form to report any changes.

 

More information about the campaign, including 2017 results, are available on the awareness page of the MnCUN website.

 

With questions, please contact Andrea Molnau, Vice President Communications & Engagement.

 

 

Updates to 2018 Annual Conference Schedule Announced

Recently, MnCUN announced changes to the 2018 combined Credit Union Day at the Capitol and Annual Meeting schedule.

Each year, the state legislature schedules a week-long break during session. It has been the long-standing practice for this break to be the week before Easter. This month, the 2018 break was announced for the week after Easter, meaning the break will conflict with the Annual Conference. As a result, the Hill Visits originally scheduled for Wednesday, April 4, will be replaced with educational programing focused on Advocacy.

“Providing the opportunity for our members to visit in person with their legislators is a key component of our advocacy efforts,” said MnCUN President & CEO Mark Cummins. “While we are still exploring if we can reschedule a traditional CU Day at the Capitol yet this session, we are able to set up targeted meetings for individual credit unions.”

Credit unions interested in scheduling individual meetings with legislators can contact MnCUN Director of Governmental Affairs Ryan Smith.

Registration is available online to attend the Annual Conference Wednesday, April 4 through Friday April 6 at the Radisson Blu Mall of America. An early bird discount is available through March 14 and conference registration closes March 21.

 


 

    

 

Credit Unions Represent Minnesota at CUNA GAC

 

View all Governmental Affairs news stories


 

 
 
 

 

View all Regulatory Compliance news stories



 

 GAP Claims Rise: What to Watch For

Jay Isaacson, CUNA Mutual Group Vice President-Commercial Underwriting

 

Guaranteed Asset Protection (GAP) provides valuable protection for credit union members by allowing them to cancel the difference between an insurance settlement and their loan balance if their vehicle is stolen or totaled in an accident.

 

However, a “perfect storm” of economic factors and auto trends has converged, increasing the number of total loss declarations filed and pushing GAP claims to record highs.

 

Some the factors contributing to this unprecedented rise in GAP claims include:

 

Extended loan terms: In Q1 of 2017, lenders reported record-high averages on auto loan terms: almost 69 months for new cars and 64 months for used cars1. Longer terms make payments more affordable, but they also extend the length of time borrowers must pay, leading to many owing more than their vehicle is worth.

 

Higher loan amounts: With the loan-to-value ratio on the rise, many borrowers find themselves under water, longer on their loans (sometimes even for as long as they own their vehicles). In fact, in the first three quarters of 2016, a third of car buyers were still making payments on their trade-ins, with an average of $4,800 in negative equity2. Typically, lenders will add this balance to the next loan, which widens the gap between the loan principal and the value of the vehicle securing the loan.

 

Faster depreciation: Vehicle values have depreciated more quickly in recent years3, extending the length of time during which a borrower owes more than their car is worth. Even slight depreciation can have a big impact on GAP.

 

Higher repair costs: Today, cars are built to last and keep us safe. But these advances come with a price. Higher-cost features, safety mechanisms, and modular components cost thousands of dollars to repair. Minor fender-benders are a thing of the past; the likelihood that a damaged car will be considered “totaled” has risen, which in turn increases the frequency of GAP claims4.

 

More cars on the road and more collisions: Lower unemployment and rising consumer confidence have led consumers to purchase more vehicles. Additionally, reasonable gas prices have encouraged car owners to drive more. Unfortunately, increased traffic means more collisions, especially with drivers distracted by their smartphones and dashboard screens.

 

This “perfect storm” of trends is impacting GAP providers across the industry. Given the steep rise in costs, it is more important than ever for credit unions to work closely with their GAP providers to maintain their competitive advantage, while helping members protect their sizable investment whenever they head out on the road.

 

(View this infographic to see more information on the trends that have led to the rise in GAP claims).

 

CUNA Mutual Group is a strategic partner of the Minnesota Credit Union Network. For more information about CUNA Mutual Group, contact MnCUN Vice President – Network Service Corporation John Ferstl by email or at (651) 288-5505.

 

Sources:

  1. Experian, State of the Automotive Finance Market, Q1, 2017.
  2. Edmunds, More Car Shoppers Are Underwater on Their Trade-Ins Than Ever Before, November, 14, 2016.
  3. Black Book, Vehicle Depreciation Report, February, 2017.
  4. CCC information Services, Inc., What’s Driving Total Loss Frequency?, November, 13, 2015.

Minnesota Credit Union Network
555 Wabasha Street N, Suite 200
St. Paul, MN 55102

(651) 288-5170
(800) 477-1034