RAPID CITY, S.D. — As the economy bottoms out, credit unions may be using online tools to attract new members, but Black Hills FCU here has noticed that the technologies are also helping to retain existing members.
Nearly 20% of the Black Hills membership lives outside of the FOM, explained John Madsen, VP-IT. "Banking online is a major retention factor because if members move, we can still service them through online banking."
Membership has grown by about 3% per year, despite the economy, in part due to "stronger retention efforts," Madsen said. Assets have grown by about 10% per year for the past five years, he said.
Black Hills tries to get all members to use the website and online banking instead of relying on branches, Madsen continued. Nearly three-quarters of the membership now uses online banking. "We position online banking as an alternative to branch banking, rather than as a supplement or add-on to it. We offer online loan apps, secure messaging and live chat, and we keep the site fresh. We use the site as a primary vehicle for members to get information and learn about new services and community events."
As a result, the number of online transactions far surpassed the number of "manual" branch transactions last year, he said. Internet banking transactions for 2008 hit nearly 11 million, whereas transactions at the CU's 10 branches totaled fewer than 3 million.
Black Hills will see greater membership growth and retention at the online channel-as well as the potential for deposit growth-when it adds new tools, including electronic signatures and document delivery along with online account opening and funding, said Madsen."We are currently evaluating vendors for online account opening and funding," he said. "And we are working with the courthouse to clarify whether they accept electronic signatures."
Black Hills uses Cavion Retail Internet Banking, Cavion Mobile Banking Professional and Cavion Website Services from Lake Mary, Fla.-based Harland Financial Solutions.
