ROME, N.Y.-Bank Transfer Day didn't just bring new checking account members to AmeriCU-it has also boosted business at AmeriCU Services, LLC, the credit union's insurance arm.
AmeriCU Services Chief Operating Manager James Lombardo said the increases it has seen were the result of an institution-wide shift toward a focus on cross-selling products, including insurance. With Bank Transfer Day, AmeriCU followed the model of many other credit unions by starting out pursuing checking account business.
"But as an organization we're doing a much better job going after different relationships and more relationships-not just making the sale (with the checking account) and moving on," said Lombardo. "We are seeing more of the new members saying 'What else do you do?'"
Unlike with banking relationships, said Lombardo, insurance clients aren't switching to AmeriCU because they're frustrated with the larger institutions. "It's not necessarily, 'I'd rather do business with you than with Allstate.' It's, 'I'm glad I can do it with you guys.' What I tell my staff internally is that the credit union has tremendous loyalty and credibility-let's transfer that over to the insurance side."
Lombardo added that AmeriCU Services works hard to capitalize on its reputation in its market, but the entire organization also has had to work at doing a better job of letting members know the variety of services that are available. "We know there's so much competition out there that once they come in and get in on their own, it's a great opportunity to tell them what else we do."
The CUSO sells auto, homeowners and personal life insurance through providers such as Travelers, Kemper and Metropolitan, and has reps available in-branch to meet with members. "It's not like your little Podunk agency," said Lombardo. "When you throw Travelers out there, it's a name people know." He said that home and auto will continue to be major growth areas for 2012, but added that personal life insurance had seen an uptick thanks to improved cross-selling to members who had already purchased home and/or auto insurance through the CUSO.
AmeriCU serves more than 111,000 members with $1 billion in assets, and Lombardo said that about 2,900 members are currently clients of the CUSO, with an additional 40 to 50 signing on each month. "We've retained 90%, on average, over the last five years, which is very impressive when you consider the economy and people shopping for insurance."
About 95% of those who come to AmeriCU for insurance already have other products with the credit union, but Lombardo said that word-of-mouth referrals do help bring consumers to the CU specifically for insurance. AmeriCU is also planning to start incorporating its insurance offerings into the way it markets other product offerings, such as mortgages and home equity loans, furthering the one-stop-shop strategy.
Critical Role of Integration
That integration is crucial if a credit union wants to grow its insurance business, he said.
"We made a conscious decision to really integrate the two services," said Lombardo, adding that AmeriCU has worked hard to get rid of any "us versus them" stigma separating the banking/loans side from the insurance side of the business. "We're trying to show that we're one, that we're a team," he expalined. "I've seen other banks and credit unions do just the opposite, and in my opinion it reinforces the us versus them. My advice would be to try to integrate it as much as possible and try to get the managers of the credit union to understand and buy into it as much as possible."
