CU Journal’s Business Development Conference: Looking for Growth in All the Wrong Places

BOSTON – Credit unions seeking to grow are being told by several experts that they often look in the wrong place. Specifically, credit unions looking for both savings or loan growth typically turn to new members, who are expensive to acquire, when they really ought to be focused on the members they have already captured. Many of the speakers addressing the Credit Union Journal's Business Development & SEG Conference at the Hyatt Hotel here repeatedly stressed credit unions are wasting precious budget dollars reaching out potential members rather than making the more effective investment in current members. Credit unions talk about growth and are growth obsessed, observed Mark Riddle, senior research analyst with Raddon Financial Group. Credit unions could grow just with the members they already have. Retention is the primary driver of growth. It's not that you're not bringing in new households, its that you're not retaining the credit unions you have. Riddle pointed to Raddon research that showed the top 10% of credit unions have a 94% retention rate, while the bottom 10% have a 90% retention rate."