NEW ORLEANS – As the surge of new member sign-ups passes, credit unions are now looking to boost loans among those same new members.
That is the consensus from lending executives who spoke with Credit Union Journal yesterday at the CUNA Lending Council’s 2011 Annual Conference here.
Robert Stowell, SVP/COO at $837-million US FCU in Burnsville, Minn., said pulling a credit report at new member sign-up is part of the CU’s standard process, a strategy that has paid off over the past month. “The credit report is important not only to show us where there are loan opportunities, but to also help us be better member advisors and counselors.” That is the role USFCU’s front line team takes, and it has helped the credit union increase product penetration in the last few years. “When members sign up we always go the next step, right there, to build a deeper relationship, save them money, and give them the products they need.”
In Vacaville, Calif., Travis CU, which averages about 1,000 new accounts per month, signed up 378 new members on Saturday. “We have a list of the people who opened new accounts this weekend and we will send them a letter thanking them for joining and ask for more of their business, including loans,” said Dave Purcell, VP of business services and real estate lending.
In Los Angeles, $720-million Los Angeles FCU signed three times as many members on Bank Transfer Day than it typically averages in a day, according to Craig Stalnaker, VP of lending. The credit union’s member service representatives were told to step up their attempts to add a loan, and other products, at sign-up. “We were not sure how this would work out, whether it would slow our service Saturday, but it did not.”
Stalnaker added if a loan was not sold on Bank Transfer Day, that new member’s information is flagged in its system so LAFCU can target the member for a loan at a later time.
While Team One CU, in Saginaw, Mich., did a lot of e-mail and website advertising for Bank Transfer Day, the $336-million credit union did not see a lot of traffic over the weekend, explained Carole Trier, SVP of financial services. “But we did see a lot of membership growth this past month. During this same time we also reduced our auto loan rate to 2.9% for refis, and a lot of folks have been eager to refinance.”
Alan Upchurch Jr., COO of $215-million Piedmont Advantage CU in Winston-Salem, N.C., said new checking business was up 61% in October over September. That, in itself, will lead to more loans, he said. “Checking is such a core account, it will generate loan opportunities.”
