The Federal Credit Union May-June 2014 - (Page 4)

FROM THE CHAIR Help Your Members by Growing Revenue By Mike Parsons Y our credit union's management team probably has this on their perpetual to-do list: finding the right avenues to secure additional income streams. You do run a business, after all, but it is a cooperative, member-owned business that will rise or fall on its ability to deliver great member service and provide a variety of financial services and products. Like any well-situated business, a credit union needs to draw from diverse income sources for long-term financial stability. These income sources come through a variety of activities - from making loans to members to offering various investment programs. But the key to success is understanding your members' needs. Evaluate their needs for financial products and services, then adapt your business operations to accommodate them where possible. Here are several examples: Business Lending Programs At First Source Federal Credit Union in New Hartford, N.Y., we just launched our member business lending program. It's brand-new, but we are looking forward to terrific results, as many local businesses are not being served by their local banks across the country. We expect our program will mirror the success of similar programs at JetStream Federal Credit Union in Miami Lakes, Fla., and Members 1st Federal Credit Union in Mechanicsburg, Pa. Mike Lussier, president and CEO of Webster First Federal Credit Union in Worcester, Mass., is part of a title insurance credit union service organization that shares services with other credit unions. Lussier's credit union also owns a property and casualty insurance CUSO that offers small-business insurance and workers' compensation. He reports that the program generates an additional $100,000 to $150,000 a year for the credit union. Jeanne Kucey, JetStream's president and CEO, said she started a business lending program two years ago. JetStream FCU Assistant Vice President of Business Services Leo Navarro, who heads the program, assists borrowers with developing and analyzing their business plans. "The success of this program has no boundaries," he says. "It is growing by the day." Investment Programs Bob Marquette, Members 1st's president and CEO, is a veteran of business lending. His credit union's program is about 10 years old and started, he says, out of a need to fill a void that banks left in the business community. Members 1st sells participations to other credit unions from its program and buys from other credit unions to keep a diverse portfolio. Insurance Programs Capital Communications Federal Credit Union President and CEO Paula Stopera says her credit union receives additional income from its mortgage company as well as its title insurance company. While owning a title company may not be an option for every credit union, Stopera says, "You can offer mortgages and work with other 4 credit unions and share in the income from those sources." Mid-Atlantic Federal Credit Union in Germantown, Md., launched an investment program about a year ago. MidAtlantic FCU President and CEO Richard Wieczorek said that although his members didn't specifically ask for a program like this, he knew the demographics and believed members would appreciate the service. "By getting members to use us for financial planning services, we expect to increase our services per member and ultimately attract more of their deposits," he says. "Members are starting to see us as more of a full-service financial institution." His credit union partners with a CUSO to offer financial planning services to its members. He encourages credit unions to "do your due diligence on selecting your partner/vendor. Make sure there are no limitations to the products your financial planner can offer." These are just a few examples of how to bolster your bottom lines. Look at all your options. By teaming up with other credit unions or CUSOs, you can help your credit union prosper, diversify your income streams and improve member service. THE FEDERAL CREDIT UNION MAY-JUNE 2014

Table of Contents for the Digital Edition of The Federal Credit Union May-June 2014

Voices & Opinions
Calendar of Events
From the Chair
Inside NAFCU
Business Talk
The Lending Landscape
The Social Life: A Social Media Roundtable
NAFCU's 2014 Annual Report
Getting to Know...
Management Insight
Compliance Central
Inside NAFCU Services
From the President's Desk

The Federal Credit Union May-June 2014