The Federal Credit Union March-April 2015 - (Page 20)
Tips and Must-Trys
Management Support, Incentives and Cross-Selling Training Can
Make All the Difference By Robert Bittner
The economic downturn of 2008 led many credit unions to become adept at
finding new and creative ways to generate income. Even though the situation
has improved in 2015, the long-term value of exploring a variety of ways to
grow noninterest income remains just as compelling.
The following insights may help your credit
union get started.
Begin With the Basics
The first step is to avoid undercutting
yourself by making sure existing fees and
services are in line with the marketplace.
"Research the competition for the fees and
services they provide to their customers,
and set your fees according to what the
market can bear," advises Jim Norris,
president and CEO of Montgomery
County Employees Federal Credit Union in
Germantown, Md. "As long as your credit
union is offering a competitive product
or service, members don't mind paying a
market rate for it."
Next, ensure that the services you're already
offering truly are connecting with members
and driving engagement.
doesn't matter. That was where we found
ourselves a few years back: Member satisfaction was wonderful, but our members
were not using our products and services.
Since then, we've worked very hard to
gain their engagement, and we've seen
our product and service usage go way up
as a result."
Fine-Tune Your Focus
At Prairieland Federal Credit Union in
Normal, Ill., CEO Barbara Michael hired a
third-party adviser to have her credit union
"mystery shopped" to highlight any deficiencies or oversights. "It was very inexpensive, and it led to good discussions on how
to improve our service," she notes.
The credit unions with the best track
record of generating noninterest income
are those that focus their sales efforts
on developing one or two key potential
growth areas at a time.
Norris also recommends doing member
research to determine whether both satisfaction and engagement are present. "You
can have the most satisfied members
in the world," he says, "but if they don't
use your products and services, it really
Prairieland decided to focus on increasing
loan income during the last three years. The
results have been dramatic. "We were at $12
million in new loans at the end of 2011,"
Michael recalls, before the new initiative
began. "So we set a goal of $1.5 million in
loans per month for the next year. In 2012,
THE FEDERAL CREDIT UNION MARCH-APRIL 2015
Table of Contents for the Digital Edition of The Federal Credit Union March-April 2015
The Federal Credit Union March-April 2015