LIVE OAK, Texas-Randolph-Brooks FCU is seeing impressive product penetration rates with new members.
RBFCU's online sign-up and account opening process is easy and fast, and employs a sophisticated cross-selling engine. Of those who join online:
* 80% take a checking account at sign-up.
* The group has a loan-to-share ratio that averages 400%
* One-in-five apply for a vehicle loan in the first three months.
* 90% remain with the credit union.
* The group is 50% more profitable than traditional members.
* 60% are between the ages of 25 and 44
In 2008 the $5.3-billion Randolph-Brooks went with Andera's online account opening platform. Before the move, approximately 6,000 accounts, or 12% of total account openings, took place online. In 2012, 12,000 accounts (17%) were opened online. The CU, too, recently upgraded to oFlows, Andera's paperless platform for account opening and lending that allows individuals to join RBFCU, add a new account, or apply for a loan through a tablet or smartphone.
'Big Reason To Stay'
Sonya McDonald, RBFCU SVP of planning and market development, said ease and convenience online are the key.
"Members have everything they need at their fingertips to manage their money. They can open their account through the online platform, apply for financing, open checking accounts and CDs ... The same convenience that attracts them to RBFCU is the first place is a big reason they choose to stay with the credit union long-term."
Once RBFCU has members signed up, the focus is on providing the right products that meet members' lifestyles and financial habits. The CU relies a great deal on online banner ads that take a "next best available product" approach, explained McDonald.
"For example, if members use RBFCU for many of their everyday personal finance needs but they are not using us to pay bills, they might see a banner advertising ePay or other free electronic services. If they have an auto loan and a savings account with us, they might see ads promoting our Really Free Cash Back Checking."
But not much selling is needed to persuade members to take a checking account when they enroll, said McDonald. "It's hard for members not to like our checking accounts because they come with so few fees and so many benefits. In particular, our cash-back debit card is popular because members earn 10 cents back on each purchase. We make it easy for them to enroll in checking through the online platform. It's only a click or two and a form."
Membership grew 17% in 2011 and 9% in 2012. McDonald credited giving a boost to its cash-back debit program-kicking the reward up to 15 cents for a few months-and having the online account opening platform in place for the big difference.
"Consumers demand convenience, and the institutions that hope to attract a new, younger base in their prime borrowing years need to provide convenient services that fit their members' lifestyles. We have worked hard to do this, both through the online channel resources and through our continuing mobile development."
