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Navy FCU Sells $200 Million In Banking Services On Facebook

Tuesday, September 17, 2013 - 10:28 AMNavy Federal Credit Union - Details
They say you can’t sell stuff in social channels. Don’t try telling that to Navy FCU, who generated nearly $96 million in new loan business and $90 million in CDs almost entirely on Facebook… in six weeks.

http://thefinancialbrand.com/3363...g-products
5
ShorebreakShorebreak2,621 posts since
Apr 6, 2010
Rep Points: 14,208
1. Tuesday, September 17, 2013 - 3:44 PM
Well this doesn't look good for depositors like myself who were hoping to get a bit better rates from Navy FCU.  If they can get all these new deposits from Facebook, I may as well pick up my marbles and go home. I wonder what kind of rates they gave to those who got the CDs.  Does anyone know?
5
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
2. Tuesday, September 17, 2013 - 4:53 PM
Here is what I posted on the above blog:
First, this may or may not be scalable. The big question is, what did it cost them and did it return a profit? Because that is what matters. Well and that is what sort of matters. Credit Unions are supposed to use profits to offer lower loan rates, lower fees, and higher savings rates. So if there was a profit, did it help accomplish that?

Just looking at some very raw numbers such as what the deposits could have cost them versus the loans, the price of the software, the price of the employees etc, I would estimate between $200K and $300K of profit. And that is probably being pretty generous with the numbers.

As of June 2013, they made about $438MM. The above amount is 0.09% of that.

Thoughts?

3
ChrisCDChrisCD70 posts since
Nov 18, 2010
Rep Points: 457
3. Tuesday, September 17, 2013 - 5:54 PM
"For all of Navy FCU’s success in social media, it doesn’t come without a price. Out of 80 or so marketing employees on Navy FCU’s staff, eight are in the social media department. The credit union employs another 20 in their contact center who act as social media service reps. Navy FCU publishes a service-level agreement for Facebook users that promises any inquiry will receive a response within an hour, but normally it only takes 15 minutes, Navy FCU says, and 95% of all issues are resolved within Facebook."

"The credit union also pays for its enterprise-grade social media management solution from Sprinklr.The Sprinklr system allows Navy FCU to monitor conversations about their brand occurring anywhere online."
3
ShorebreakShorebreak2,621 posts since
Apr 6, 2010
Rep Points: 14,208
4. Tuesday, September 17, 2013 - 6:18 PM
What is really going on here?  It sounds like from the posts that Navy FCU is making profits off of Facebook but not sharing them with depositors via higher rates.  Their rates are as puny as most others.  They get more deposits, we get nothing better in rates.
4
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
5. Tuesday, September 17, 2013 - 7:33 PM
I think Navy FCU is just attempting to get their brand established as #1 in social media ahead of the rest of the credit unions. They are the world's largest credit union.
2
ShorebreakShorebreak2,621 posts since
Apr 6, 2010
Rep Points: 14,208
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