Wisconsin credit unions united to help pass a law that could encourage more members to save; now, they're uniting to put a statewide program in place, offering cash prizes as incentives for members to stash more cash in savings accounts. Learn about the program on Thursday, May 10 at Convention!
Wisconsin credit unions are leveraging their unity through their League to develop a statewide, multi-credit union Prize Linked Savings (PLS) program branded specifically for Wisconsin credit unions. It's the next step we're taking together after Activists helped pass a law to bring the opportunity to our state.
As part of a PLS program a consumer makes a deposit into a qualified savings account and in doing so is entered into a prize drawing – rewarding the individual for saving. As part of existing programs, five-figure grand prizes have been typical. Since 2009, there are more than 32,000 credit union PLS accounts.
- Program parameters will be set with the help of a credit union advisory group:
- Don Cohen, Landmark Credit Union
- Jeremiah DeGollon, Summit Credit Union
- Cheryl Dutton, Altra Federal Credit Union
- Rex Fair, Sentry Credit Union
- Laura Gabrielse, Kohler Credit Union
- Ross Hubbard, 1st Community Credit Union
- Shannon Huot, Educators Credit Union
- Jenny Kutz, Members First Credit Union
- Kelly McDonough, Glacier Hills Credit Union
- Mary Sullivan, Community First Credit Union
- Scott Willmott, Verve, a Credit Union
- Startup funding is being provided by the W.C.U.L. Services Corp.
We'll launch the program at Convention in Green Bay. Join us for a special breakout session on Thursday, May 10 from 1:30 -2:30 p.m. as we unveil this new opportunity.
A statewide Prize-Linked Savings Program:
- Provides a member acquisition opportunity – an estimated 10% of all PLS participants are new members.
- Provides cross-selling opportunities – an estimated two-thirds of PLS participants say they are more likely to use other credit union products.
- Improves member financial security. More than 85% of the people participating nationwide were financially vulnerable and accumulated savings of over $2,400 on average. Since 2009, over $190 million has been saved by credit union members nationwide.
- Increases member satisfaction – participants' opinions of their credit union improved after the credit union offered a PLS product.
"By collaborating on a statewide scale, credit unions will be able to offer a high-profile, high-dollar program rivaling that of well-established, ultra-visible statewide lotteries," said The League Services Corp's Tara Krejcarek.
"Our unity will increase the program's credibility, attract far more consumers than smaller, local prize programs and create synergy that will boost perception and interest, ensuring the buy-in required to sustain and grow PLS as a long-term opportunity for the greater credit union Movement. We are always stronger together," she emphasized.
The League PLS program will require members to deposit a relatively modest amount each month to be eligible for drawings. The program will feature statewide prize drawings, but participating credit unions will also have the option to promote additional drawings just for their own members.
Prize-Linked Savings in Credit Unions in 2017 (Commonwealth)
Prize-Linked Savings - Compliance Courier article
Questions? Contact Tara Krejcarek at (262) 408-6026.
Wisconsin credit unions come together as a single League to Unite for Good; we remove barriers, increase awareness and foster service excellence. All of these steps help more Americans to see credit unions as their best financial partner and regard their credit union as their primary financial institution. Read more articles in our Unite for Good series.