LOS ANGELES Six months after introducing a program it calls “Member Benefits,” which is designed to “reward those members most invested in the success of their credit union, while asking those who are not engaged to help pay their fair share,” Los Angeles Police FCU said it has seen increased profitability and changed member behavior.
LAPFCU describes Member Benefits as a “hybrid” program that is both a carrot and a stick, using relationship pricing and product bundling to reward members who use it for products and services, while instituting a $5 monthly maintenance fees to single-service share accounts with balances less than $250. Los Angeles Police also has implemented checking fees on accounts that did not have basic related services, such as direct deposit and e-Statements. Checking fees are waived when members have relationships that qualify for Member Benefits.
Six months into the program, LAPFCU said fee income has increased from $35,000 to $207,000 on products/services tied to the program, e-statements are up 32%, and there has been a 25% increase in members who qualify for the program, among other benefits. It is crediting an additional $155,022 in income to Member Benefits.
