LOMBARD, Ill.-The most important step CUs can take is to position themselves as a true financial partner within their communities.
Raddon Financial Group's theory for driving growth may not pay immediate dividends, like a checking account promo or high-rate CD, noted Bill Handel, VP-R&D. It's a longer-term strategy to capitalize on an unprecedented opportunity. "Members are looking for a partner who can guide them through this economy," he said.
That means a concerted effort around financial literacy. "It's not about funding an event," Handel said. "It's about helping members with their financial situations. I think you move beyond simple marketing and take a true position of advocacy and financial literacy."
Baby Boomers are a likely target, said Handel, since their financial world has been "turned upside down" due to retirement plan losses and the real estate collapse. But it's also their kids, as Boomers are seeking an information resource, asserted Handel. "They are very aware of the lack of financial literacy among their own children."
Handle cautioned that credit unions may be overlooking this opportunity since many are wrapped up in daily business activities. "Sometimes all we see are the marketing and product approaches that go on and we want to do the same things we've always done."
