DriveUp Savings

The earliest adoptor of DriveUp Savings, Members United Federal Credit Union, represents the innovation as it is featured in the January 2009 issue of Credit Union Management Magazine, from CUES:

. . . some of the most innovative approaches to auto lending in a down market are cropping up at small CUs. $7 million Members United Federal Credit Union of La Porte, Ind., for example, is piloting a program called “Drive-up Savings” that allows members to link a car loan to a savings account and offers them the same rate on the savings account that they are paying on a car loan.

“This is a wonderful product,” Probasco enthuses. “It breeds savings.” For members who are struggling financially, it builds up a savings balance they can’t touch until they trade in the car, finish paying off the loan or need to make authorized repairs to the car. They’re likely to build up money they can eventually reinvest or use as they see fit. And having the savings account can help them raise their credit score and make future borrowing less expensive, she explains.

From CUNA.org ~ Indiana ignite initiative ready for CU adoption:

INDIANAPOLIS (12/2/08)–Indiana Credit Union League’s ignite initiative is making progress, and innovations begun at the start of the year by the ignite working group are ready to be implemented in credit unions, says the league.

Several Indiana credit unions have committed to offering the innovations, and working-group members are seeking additional credit unions to adopt them, the league said.

“To stay in touch with all that is happening with ignite, we have established a website, www.ignitecu.org,” said Doug True, league director and leadership team member, and senior vice president technovation at FORUM CU and president of FORUM Solutions.

The site serves as an information center for ignite projects and as a social networking site. The credit union community nationwide can join the network to keep up with the developments, True said.

One credit union that has adopted an ignite innovation is Lafayette-based Purdue Employees FCU, whose CEO Bob Falk, is a member of the ignite leadership team. Purdue is implementing DriveUp Savings, which allows borrowers to open a matching-rate savings account at the same time they close on their auto loan.

“This product has merit not just for our members, but for credit union members everywhere who need a little extra incentive to save money,” Falk said.

. . . In the DriveUp Savings product, members open a savings account, such as a certificate, at the same time they close their auto loan. The loan officer and member agree on a monthly contribution amount and through automated electronic transfers, the DriveUp Savings is funded at the same time the auto loan payment is made.

Is your CU ready to DriveUp Savings? Or, have you implemented it already? Contact us and let’s get the wheels rolling!

Moriss Partee was kind enough to launch a topic about DriveUp Savings at EverythingCUMarketing.com.

Six credit unions in Indiana have launched a cool looking program that helps members save when getting a car loan. Not only does the program help your members build up their savings, it has the additional impact of increasing the CU’s deposit balances.

The Financial Brand has posted a nice profile of DriveUp Savings.

The site is “an online publication focusing on issues and advice that affect bank and credit union brands.”

With a razor-sharp focus, The Financial Brand provides strategic analysis and insight on a range of critical brand-building tools, along with real-world examples, ideas and practical advice about the issues financial institutions face today.