Member-owned credit unions have long held the promise of aligning with today’s purpose-driven brand era. However, recent trends reveal declining customer satisfaction scores, and younger generations like Millennials and Gen Z are not engaging with credit unions as previous generations did. Recognizing these industry challenges, North Carolina’s Local Government Federal Credit Union (LGFCU) partnered with Ziba to launch a new, digitally-forward brand, Civic. This partnership aimed to reverse declining trends by building a groundbreaking customer experience (CX) strategy driven by brand purpose.
Ziba named and developed Civic’s brand identity, articulated its purpose, and crafted an innovative CX vision that brought brand purpose to life at every touchpoint. LGFCU implemented three of Ziba’s CX concepts, positioning Civic as a future-facing, big-bank competitor, customized to meet the needs of local communities. Launched in 2018, Civic is now one of the top-rated credit unions in the country and one of the fastest-growing financial institutions in the U.S. With plans to open 11 new branches by 2025, Civic’s high-tech, high-touch approach is set to expand further, aligning with North Carolina communities’ sustainable economic well-being.
Ziba wishes to thank Lamar Heyward, Chief Marketing Officer for Civic and LGFCU, for his invaluable contribution to this article.
The Power of Brand Purpose in Credit Unions
While brand management has been around since the 1950s, purpose-driven branding has only gained traction in the past decade. Ziba describes this shift as the transition from “Me to We,” where younger consumers increasingly judge companies based on their social and environmental impact, not just product features, pricing, or overall brand experience. Kantar’s BrandZ, the world’s largest brand equity database, shows that companies perceived as making a positive social impact grew their value by 175% — double the growth rate of companies with weaker consumer perceptions of purpose.
As member-owned, not-for-profit organizations, credit unions should naturally excel in this environment. They exist to improve their members’ and communities’ financial well-being. Despite this, the American Customer Satisfaction Index revealed that credit union scores dipped below banks’ for the first time in 2019 and have continued to decline.
As critical providers of consumer banking services to one-third of the U.S. population, credit unions would seem better positioned than for-profit banks to attract socially conscious consumers. Big banks, in contrast, have faced declining trust due to a series of crises, including the widespread bank failures during and after the Great Recession and, more recently, data breaches such as the Equifax incident. Furthermore, the industry has come under increased scrutiny for issues like greenwashing and fossil fuel financing.
Big banks have focused on fintech innovations, improving functionality, speed, and touchpoints, which credit unions have been slower to adopt. As a result, credit unions have failed to fully leverage their inherent strengths and social impact potential, often underselling their initiatives.
Creating a New Paradigm for Purpose-Driven Banking
Maurice Smith, former CEO of LGFCU, was determined to avoid the industry’s downward trend. Aware of Ziba’s future-thinking capabilities and CX innovations for brands like Umpqua Bank Smith approached Ziba in 2017. Together, they envisioned a new brand identity and customer experience for LGFCU that exemplified the idea of banking as a force for good.
The timing was ideal for LGFCU, which had recently split from the larger State Employees Credit Union (SECU) to serve local government employees, volunteers, and their families. When SECU phased out commercial lending, LGFCU seized the opportunity to reinvent itself, focusing on financially empowering its members and highlighting its environmental and community engagement values. This led to the launch of Civic, a new digital-only sister brand.
Branching Out—Digitally and Physically
Smith’s strategy was to leverage LGFCU’s 40 years of brand equity while launching Civic as a digital-first credit union, meeting Millennials’ and Gen Z’s expectations for anytime, anywhere access to financial services. Although Civic is a digital-first brand, LGFCU maintained access to physical branches through its cooperative partnership with SECU. These 250 branch offices continue to serve older members while remaining relevant to younger generations. Research from Raddon found that, post-COVID, Millennials are increasingly seeking out branches for “high-touch advisory services,” driven by concerns around investment uncertainty, homeownership goals, and financial planning needs.
According to Lamar Heyward, Chief Marketing Officer of Civic and LGFCU, Smith was a visionary who believed in dramatically expanding digital access. Providing anytime access to meaningful financial services was a deeply felt imperative for him, not just a way to chase parity with big banks. Smith was committed to completely “eradicating the financial services deserts of North Carolina.”
However, this vision couldn’t be fully realized without broadband access. Eighty of North Carolina’s 100 counties are considered rural or rural in character, and many are off the grid. Civic’s current CEO, Dwayne Naylor, champions this cause, ensuring Civic partners with broadband advocates. Recent federal approval for a $1.5 Billion in Broadband investment in North Carolina has given this effort a timely boost.
CX Insights Shaping Civic’s Brand
At the start of the LGFCU-Ziba partnership, Ziba’s ethnographic research provided deep insights into Civic’s key consumer segments. These findings allowed Smith to challenge preconceived notions within the leadership team, pushing beyond simple fintech solutions to develop CX features tailored specifically for North Carolina’s financially underserved.
As Rob Wees, Ziba’s Creative Director, explained, “Conducting ethnographic research was pivotal in shaping Civic as a brand that genuinely addressed the financial anxieties and aspirations of its community. Civic was not going to be just a bank, but a trusted advisor, purpose-built to strengthen its members’ financial well-being.”
Ziba’s research revealed crucial perceptions, hopes, and fears about money management and financial institutions among Civic’s future members. Some avoided financial planning out of embarrassment, while others saw a lack of financial literacy as an insurmountable barrier to wealth. Many desired support in celebrating small financial wins while giving back to their communities. Civic’s CX strategy balanced high-tech solutions with high-touch education and support to address these needs.
Building a Purpose-Driven Customer Journey
Ziba applied a Maslow-inspired framework to Civic’s customer journey, aligning the credit union’s CX design with its core values. Wees elaborated: “After constructing Civic’s brand pyramid, we mapped the ‘banking, belonging, and believing’ framework onto the 360º customer journey. For instance, during the Borrow step, we recommended Civic make the loan application process more about supporting ideas and less about proving members’ creditworthiness.” This ensured each step in the customer experience reflected Civic’s purpose and values.
Reversing Lackluster Credit Union Marketing
To build Civic’s member base in North Carolina, where big banks hold 90% of deposits, Ziba and LGFCU focused on compelling, values-driven marketing.
They aligned Civic’s purpose, character, and values into the following:
Brand Purpose—To Strengthen the Fabric of Our Society
Brand Character—The Community Catalyst
Brand Values:
- Unconditional Respect: We believe everyone has equal value and should be treated with fairness, kindness, and respect, regardless of their circumstances.
- Civic Integrity: We believe in standing with the civic supporters that make our communities work. We encourage the people who do and dream of ways to make us better.
- Localized Impact: It’s not just lip service; we are a part of a long tradition of community interest. We bring investment knowledge and capabilities to bear on local concerns.
- Pragmatic Resourcefulness: We value resourcefulness, and North Carolinians are a resilient group. We offer real resources, not flashy promises. We adapt to the communities’ changing needs.
- Cooperative Progress: We know that we are only as strong as our weakest link. We work tirelessly to support a cooperative vision where we grow and prosper together.
Next, Ziba designed Civic’s visual identity to be modern and inclusive.
The logo, inspired by flags, features three red stars symbolizing Civic’s triple-bottom-line approach: People, Planet, and Prosperity. Michael Etter, Ziba Principal Art Director, explains, “Our goal was to design a brand that not only resonates with the digital age consumer but also communicates a deep sense of local community, signaling that the brand is setting a new benchmark in customer experience for financial institutions.”
CX Strategy in Action: Three Core Concepts
Once Civic’s brand identity was established, Ziba and LGFCU focused on translating the brand into real-world customer experiences. Ziba developed several CX design concepts, and three were implemented:
01 - In Your Neighborhood
Initially an awareness campaign, this evolved into a platform for community insights and support. Civic meets members where they are, providing financing for essential needs like fire trucks and safety gear.
Heyward emphasized: “Fire station turnout gear is not financed by big banks, so it’s an essential Civic service. If the community is buying a fire truck, we handle the financing, and our folks go to them, in their neighborhood.”
One of Civic’s standout community-supportive features is the ability for members to use their debit cards to support local firefighters or the Parks & Recreation division. In addition, Civic contributes half of its earnings back to these causes.
“We’ve donated $4,771,556 so far, and it’s not a tax write-off,” Heyward explains. “It’s about building stronger communities, and it helps us grow our membership base.”
02 - Open Door
This shared workspace concept fosters community co-creation. Civic has held over 30 in-person events to gather ideas and feedback.
“Open Door was huge for us,” said Heyward. “Their ideas translated into business services that absolutely produce customer experience enhancements.”
Heyward continues: “We’re hard on the charge for all things digital, of course, but we’ll still be executing Open Door at scale across our branch network. We’ve received resoundingly positive feedback on the summits. There is a real outcry for a Civic physical presence—to be with our members, exchanging ideas, people working side by side.”
03 - Empowered Advisor
Civic empowers its employees to act as financial advisors, helping members
with everything from refinancing options to disaster relief.
“This has helped solve member problems—and then some,” says Heyward.
“And we’ve gamified it, so each employee always asks, ‘How can I save the member even more money?’ The top saver has helped a member save
$750 a month.”
Acting on Civic’s Values with Conviction
In June 2025, LGFCU and Civic will enter a new chapter as their cooperative agreement with SECU ends. Civic is growing, with more CX innovations in the works. One notable development is a video chat-augmented ATM, allowing members to speak with real advisors, a further reflection of Civic’s commitment to “radical access.” Eleven new branches and mobile service vans will extend Civic’s reach to communities across North Carolina.
In June 2025, LGFCU and Civic will enter a new chapter as their cooperative agreement with SECU ends. Civic is growing, with more CX innovations in the works. One notable development is a video chat-augmented ATM, allowing members to speak with real advisors, a further reflection of Civic’s commitment to “radical access.” Eleven new branches and mobile service vans will extend Civic’s reach to communities across North Carolina.
Heyward reflected: “Everything we’ve become—it’s all in the brand name, identity, and bold CX vision Ziba created for us. We’re bringing Wall Street-caliber financial services to Main Street, with more access, inclusion, and education—teaching our members how to fish. We’re also pushing ahead with our sustainability efforts, which already include a large rooftop solar array and several electric vehicle chargers.”
For Heyward, the journey is deeply rewarding: “For the last seven years, our brand purpose and values have become more galvanizing for our employees, members, and local communities because we’re feeling what it’s like to create a virtuous circle of service and success.”
As Ziba’s Creative Director, Rob Wees, summarized: “The real test of innovation lies in its audience relevance. We focused on understanding the motivations and behaviors of local government employees and their families to shape a vision that meets real needs. This strategic approach has created a deeply engaged credit union workforce that feels connected to their mission and their community.”
“Civic’s 2023 Impact Report showcases all of our accomplishments,” says Chief Marketing Officer for Civic and LGFCU Lamar Hayward. “But to celebrate a few of the most impressive: we joined the Global Alliance for Banking on Values (GABV) in 2021, and NerdWallet named Civic to its 2022 list of best “Socially Responsible Banks. Civic is now one of the
top-rated credit unions in the country and among the fastest-growing financial institutions in the nation.”
