SCOTTSDALE, Ariz.-The majority of CU growth this year will come from existing members, predicts McGuire Performance Solutions (MPS), which recommends "old-school" financial management to capitalize.
"Credit unions need to execute on member basics-service, convenience, and product. It's not a year for gimmicks or any kind of fads," offered MPS President Bill McGuire. "It's blocking and tackling. We need to focus more on growing at an organic pace. It's not sexy or trendy, but it's time to get your act together. This will further differentiate credit unions from the banks."
The approach will solidify the CU's hold on its members, said McGuire, who pointed to a simple way many credit unions build stronger relationships than banks-and should continue to do so: "A huge competitive advantage credit unions have is that when a member picks up the phone they actually talk with someone. Banks shuffle you all over the road."
McGuire emphasized focusing on what members want, rather than what the credit union needs, and fitting delivery channels to members' lifestyles, which could mean ATMs, branches, or online banking. "You will have to have the delivery path that fits members' needs, the service that executes the member value proposition, and the right products."
It's also time to make sure the credit union has tiered pricing in place for deposits so that when rates rise the organization can differentiate between the rate sensitive and non-rate sensitive members, added McGuire.
