WILMINGTON, N.C.-Velocity Solutions believes that bringing inactive members back into the fold is one of the best ways to improve the bottom line.
They are an easy marketing target and the opportunity is ripe to get them transacting at the CU again with a checking account-and that requires the right incentives, suggested Heather Kline, credit union product specialist. "Over the last several years, with the proliferation of free checking, many members have multiple checking accounts. With all of the regulatory changes and the fees that are starting to creep in at banks, members are now often making their credit union checking account their primary checking account."
Kline said that to get members back with checking, the credit union should not buy the business. "That does not work," she said. "What we often see there is that people sign on for the $100 and then cancel the account the next month."
Instead, credit unions should provide ongoing incentives like debit rewards. "You want to provide some incentive that gets the member interested initially, but also motivates them to continue transacting," Kline said.
