SAN ANTONIO-In 2013's second half look for more credit unions to seriously consider "out-of-the-box" revenue sources to drive the bottom line.
That is what SWBC is seeing, and Mark Hein, CEO of SWBC's financial institution group, attributes the trend to an improving economy. "A lot of credit unions are coming out of an economic funk and are looking at additional revenue streams they have not typically considered. They see the new sources as not only adding income, but building member loyalty as well."
Homeowners and auto insurance are getting a lot of attention, with CUs setting up agencies, said Hein.
"In the past a lot of CEOs said we won't do homeowners and auto, choosing not to venture down that path. But I think the fact these products add some stickiness to the relationship in a time when financial institutions are fighting hard to be consumers' PFI is changing CU executives' minds."
Hein said SWBC is selling its auto and homeowner's insurance agency model and receiving a lot of interest from CUs without having to promote the offering a great deal.
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