How Credit Unions Can Grow Membership

Credit unions must play to their strengths — trust and personalized services — to compete against banks and other financial services firms. Let’s explore five ways that CUs can grow their membership.

1. Innovate. Technologies like behavioral analytics and artificial intelligence are reshaping the credit union landscape. But what’s behind the drive to adopt new technology? It’s about finding ways to better meet members’ needs, to work smarter, and to drive member engagement. Additionally, Big Data has permeated every industry, and credit unions are no exception. How do you distill the data to glean valuable insights? Leveraging AI can lead to efficiencies that deepen member connections (e.g., knowing the right time to send relevant content to members) and improve efficiency (e.g., your Sales team receives a prioritized list of hot leads to follow up).

2. Integrate your channels. If you bombard members with the same message across multiple channels, your members will tune you out. But if you integrate channels, engagement will grow. In the age of perpetual connectivity, it’s time to communicate on your members’ level: Nine out of 10 consumers want to use text messaging to communicate with businesses. Also, did you know that 95% of text messages are opened within 3 minutes and responded to within 90 seconds? (Email has just a 20% open rate.) That suggests you may want to put your resources into texting to maximize member engagement. Use channel integration to improve members’ experience. For example, allow members to stop a process on one channel and resume it on another without having to start from scratch.

3. Get members to leverage more of your products. Your members pay other companies a fee for certain products that could become part of your portfolio. Spread the word to increase awareness, and put yourself in your members’ shoes. Implement a loyalty program that rewards members with a lower interest rate on a loan as they amass points. Or, follow the lead of a CU that offers higher rates on modest savings accounts, paying the highest rate to the first $500 in savings. As a result, this CU has become known as the “preferred piggy bank for kids in the Puget Sound.” This CU, which also lowers interest rates on loans for members who improve their credit scores over time, has grown to exceed 1 million members.

4. Become trusted financial advisers. The market is flooded with financial advisers from banks, wealth management companies, credit unions, brokerages, etc. Consumers choose an adviser for two reasons: expertise and trust. To stand out, gain your members’ trust by developing personal relationships. Show them you are trying to understand their needs. Develop a reputation for your expertise by sharing content that reflects your knowledge, and then recommend the right products at the right time.

5. Update branches. Make them more attractive and automated. Maybe you’ve seen the Capital One Cafes. Some credit unions have succeeded by doing something special: free food (one served gourmet pretzels), customer appreciation celebrations (live music), charity events (a coat drive). One CU installed movable walls attached to a ceiling track system, allowing the space to be reconfigured on the fly to accommodate different events. The U.S. Mint held a holiday reception at this branch. All of these ideas have a common theme: turning an otherwise boring branch visit into a fun, engaging and memorable experience.

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Jose Antonio Ribeiro Neto (Zezinho) é um autor luso-brasileiro. Seus livros e artigos incluem tecnologia, Big Data e auto-aperfeiçoamento. #joseantonio #zezinho #autor

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