WICHITA, Kan.-After catching its breath following an onslaught of new deposits and members last year, Mid American CU has changed its staff incentive structure to drive deeper relationships.
CEO James Holt explained that incentives for financial service representatives are greater this year. "Let's say the rewards are better, but it's a little harder for staff to get them," Holt shared.
Holt expects the new bonus structure will motivate its FSRs to cross sell more services. "We have moved up the minimum standard to achieve a bonus, but when FSRs get there, they have more in their pocket."
What staff is incented to cross sell has changed, as well. Mid American recently added business services and business loans, and FSRs will be compensated for cross-selling those products.
That's not all the $151-million CU is doing to capitalize on the opportunity to develop long-term relationships with many of the consumers who joined last year during a rush to bring deposits to MACU. The CU grew assets by 12% last year, thanks in part to a three-month period in which Mid American attracted more than $7 million in CDs. Holt said the credit union's investment arm will be making calls this year to members as their CDs mature, suggesting investment alternatives and other CU services.
All of the moves come after MACU "recovered" from all of the deposit business Holt said "fell into our laps." He shared that the credit union was too busy last year to make any adjustments to focus on member retention. "Not when you are in the middle of the rush. You just make sure everyone is working faster and doing the same good job. Then afterward, you have time to determine what you can do differently to keep those new members."
Mid American does not plan to change its consultative approach to driving deeper relationships, and is talking to all new members - and those existing members who brought over a significant amount of new money-to probe for their financial goals. If during those discussions the CU learns that the member is simply looking for a place to safely park money short term, they do not cross sell those individuals.
"You have to ask yourself, from a capital perspective as well, do you really want all of that money or some of those members that we got last year," Holt concluded.
