Published: October 14th, 2020
It’s that time of year again when credit unions take a detailed look at their strategic goals and the impact on budgets heading into next year. Given the unexpected COVID-19 challenges in 2020, mega banks are doubling down on acquisition marketing, and the increasing availability of online financial providers, credit unions have been tasked with finding new ways to effectively service and retain their members. Regardless of where growth is needed, deposits or loans, credit unions have a unique advantage as they are the only financial service providers that are member-owned.
However, what will members be focused on during the current time of uncertainty?
So as we look forward into 2021, unlike many of the mega banks, the strategic goals of credit unions will once again be based on meeting the needs of their members, serving their community, and nurturing the personal relationships with each of its members. Specifically, this has an impact in three main areas.
The mega-banks continue to spend a tremendous amount of money on marketing and advertising, sometimes offering hundreds of dollars to consumers to simply open a checking account. So, what are the components of an effective retention strategy for credit unions?
There is a large slice of America who are not ready to leave their house to visit their local Credit Union branch. So how do you go to them? Reassess the ease of use of your online resources. A safe and secure platform is the basic requirement for all websites, portals and apps. Create a team that reconsiders the information you present. Ask yourself the questions they will be asking in three to six months and get it online. Member engagement is at the heart of our credit unions. Make sure they know that truth, too.
What is your members’ credit outlook in a post-post-coved era? Are they behind on payments for their home, personal credit cards or business loans? Credit unions need strong practices and policies in place that are accessible to members who are struggling. Neither party wants them in that financial position. Chart an appropriate course for each to provide stability and renewed financial freedom. With so many new programs through the CARES Act, Credit Unions can lead the way in rehabilitating member credit large and small.
Those are just three things at the top of my mind. You might have a plan for those three already. Maybe your three things are totally different. One thing is for sure, the trajectory and positive outcomes for the coming year hinge on a deliberate plan. So … start talking 2021.
6 Degrees is a Member Relationship Management solution made specifically for credit unions.