WAUSAU, Wis.-Marathon County Employees CU averages more than four services per member, which is the big reason it grew its assets by 11.5% in 2008 and capital by 14%.
It attained those peer-leading figures through cross selling that's not driven by an MCIF or targeted marketing. Instead, this $17-million shop prefers the "human touch."
"I'd like to be able to afford a better computer system that could run an MCIF, but what we do works well," said CEO Anne Heggelund. "We really don't track how many services we have per member. Like many small credit unions, we struggle without having a strong computer system. Our credit card program is offline, as is our student loan program and our mortgage partnership. It's not as if all of our member account information is neatly pulled together."
Without technology to help mine for members' needs, Marathon - ranked No. 1 in Callahan's & Associates 2008 rankings for Member Service Usage for credit unions between $10 million and $20 million in assets-sells additional services by knowing members well. Heggelund explained how staff monitor accounts to spot where members need assistance.
"If something is going on with a member's checking account, we'll call to see what's up," Heggelund said. "If we find they've hit a tough financial stretch, we'll offer them a line of credit if they need it to get through to the next paycheck."
That close attention recently alerted a member to an instance of fraud.
"It's knowing that a member, who has never bounced a check, bounces one and then calling the person and finding out it's fraud," Heggelund shared. "Most credit unions would never find out that way. But my staff did because they know the member that well. That sort of attention provides great word-of-mouth advertising."
It also generates trust, which has helped MCECU's cross-selling efforts that begin after landing new members via checking and loan business. MCECU has strong ties with its sponsor companies, primarily government and county employers, who promote the credit union to new hires as an employee benefit. That nets a great deal of checking accounts since sponsors require payroll deposit.
While the checking business comes from strong SEG ties, loans come through a liberal lending policy that has the credit union more than 100% loaned out. "We take chances on people while many other financials will not," said Heggelund. "Members grow to rely on us, and as a result we get more of their services. For example, we gave a young couple a loan for a mattress after they had been turned down by a bank, and they were so happy. Their credit score was in the 500s at the time and now it's 703. Today they're one of our biggest advocates."
While a small credit union, MCECU offers a full range of services through partnerships with other CUs. All mortgage lending, outside a closed-end home equity loan, is handled through participations with local Connexus CU. Small business lending is conducted through Covantage CU. Marathon does not have an ATM, but has arrangements with neighboring credit unions to use their networks.
The technology challenges don't allow MCECU to offer relationship pricing, Heggelund explained, adding that pricing is not overly competitive. A 48-month car loan is 5.49% and its closed-end home equity loan was 7.99% for 100% loan-to-value. At press time a six-month CD paid 2.7% APY, and one year returned 3% APY.
Heggelund summed up what's fueled the cross-selling success and a strong 13.6% capital ratio: "A lot of it has to do with members feeling that someone cares about them."
