PLEASANTON, Calif.-According to Harland Financial Solutions, growth this year is all about expanding on the market share windfalls of 2009.
"If there is one thing-and truly only one thing-that a credit union should focus on in 2010 to drive growth, it is how to retain and build upon the market and wallet share gains in 2009 by increasing their member and balance retention rates," said Sam Kilmer, vice president of market development at Harland Financial Solutions.
To do that efficiently, Kilmer added, it will take prioritizing the mix of business initiatives - like member relationship management, online and mobile banking, business services, and the ongoing use of targeted marketing - and looking at how those efforts are all integrated.
Efficiency Is the Key
"Efficiency is the operative word because capital is king right now, and the only way for credit unions to increase capital is through improved performance and retained earnings," Kilmer observed, noting that he can point to both anecdotal and quantitative evidence to back up this point.
"Our experience and industry data have shown that a credit union's expected annual growth rate can be bumped up several percentage points by focusing on best practices in retention and existing member development strategies," Kilmer added.
