Credit unions are vital pieces of the communities they serve. They’re pillars of financial literacy that support the local economy by offering personalized service to members. Credit unions often need continued growth to not only stay competitive in the market, but to also better pursue their mission as an organization.
However, certain market factors like facing competition from large financial institutions can make it challenging for credit unions to thrive. The good news is that with the right approach, membership expansion is achievable. Learn five credit union growth strategies to help your business below.
1. Make Membership Engagement A Priority
One of the clearest paths to growth is for credit unions to get more members. And a good strategy to achieve that is to prioritize membership engagement. Some of the most successful credit unions leverage technology to have more points of contact with their members. Online touchpoints like accepting membership applications online, a strong social media presence and mobile apps (for mobile banking) all add value to customers.
Digital touch points make it easier for your credit union to introduce more convenience to your customers. The happier your members are, the more likely they are to share their experience, which often leads to membership growth.
2. Leverage the Potential of Your Unique Markets
At their core, credit unions operate with a relationship-based business model. This approach is one of the main motivations behind specialized services that serve niche markets. The question is, can your business do more in those unique markets? We’ll expand on this strategy by walking through an example.
Let’s say you’re a credit union that offers specialized loans for musical instruments. While the service is promoted, there’s more that can be done to gain more traction in the market. For starters, your team could reach out to local schools, music stores and teachers. A limited time promotion, sponsorship or contest could drive more customers to this core service.
3. Focus on Community Outreach
Community outreach and a credit union’s financial health often go hand-in-hand. Businesses that put extra focus on serving the community can see increased membership growth and loyalty. Some community outreach initiatives that credit unions could leverage include:
- Free Community Events: Host financial literacy workshops that are free for members and the local community. You can also ask attendees about future workshops they’d like to see to help build an event calendar.
- Sponsorships: Look for sponsorship opportunities in the local community. Whether it’s backing a little league team or partnering with a local non-profit, make sure the sponsorship aligns with your credit union’s mission.
Partner with Local Businesses: Look for other local businesses that focus on serving the community such as a local insurance agent. There’s a lot of opportunity to grow your credit union’s businesses by cross promoting services with them.
4. Update the In-Branch Experience
An approachable tech solution for credit union growth is to update the in-branch experience with digital signage. These signs are programmed to enhance the customer experience by displaying relevant information such as the current wait time, what documents are needed for specific services, finance tips, and more.
Digital signage also provides the benefit of being a brand ambassador for customers that keeps them engaged when they’re not working with an employee. Industry experts agree that digital signs are a key part of optimizing the branch experience for customers. Digital signs add value without removing the personal rapport expected at credit unions.
5. Embrace an Omni-Channel Approach to Debt Collection
Every credit union has delinquent accounts, and every dollar recouped is another dollar that can be re-invested in the community. An omni-channel approach to debt collection seamlessly combines each communication channel into a consumer-centric approach. The heart of this strategy is all about communicating through a customer’s preferred channel. Research shows that initiating contact with customers on their preferred channels can lead to a 10% increase in payments.
One bad interaction with a customer can damage your brand reputation. That’s why it’s important to provide a debt collection experience that caters to customer needs and preferences. With surveys showing that 46% of consumers expect to be contacted through their preferred channels, how can your credit union fully leverage digital debt collection?
TrueAccord Specializes in Digital Debt Collection for Credit Unions
At TrueAccord, our omni-channel approach is fueled by a patented machine learning engine called Heartbeat. It determines the right channel, to send the right message, at the right time, all while maintaining compliance.
If your credit union is looking to collect more from happier people, TrueAccord can help. Our platform can handle your credit union’s charged-off accounts with an approach loved by consumers. Contact our sales team today to learn how we can support your business goals.