Dealing with Loan Losses
SAN DIEGO-This year credit unions can add to growth by subtracting, contends Ann Legg, VP-marketing at the $190-million Cabrillo CU here, noting the loan losses affecting many credit unions have required attention.
Beyond that, another important step will be looking at different income sources, asserted Legg. "Because now it won't be net interest margin and it may not be interchange income. It means relooking at the business model and determining what is it for each individual credit union that is going to lead to sustainable growth."
Bite the Bullet and Expand
LONGVIEW, Wash.-For those that can afford it, credit unions should bite the bullet and look toward branch expansion to capitalize on 2010 growth opportunities.
That's according to Lesley Carrell, SVP-marketing at the $680-million Fibre FCU, who said that despite the electronification of many aspects of how members do business with their members, branching remains a key issue.
"It's critical that credit unions have the branch structure in place to drive growth," said Carrell, who believes the opportunity to take significant business from banks will last long enough for CUs to add branches this year and still make the move profitable.
"Yes, people want to do online banking, but most of those people also want a branch nearby," Carrell said. "Over and over, research has shown that to be true. And it's not only building branches, it's finding the right locations and providing the right hours of operation," she reminded.
Getting Passionate About Service
JERSEY CITY, N.J.-When it comes to growing by taking business from banks, nothing beats the old stand-by, great member service, contends Sean McDonald, director of business development and marketing at the $54-million Liberty Savings FCU.
"I am pretty passionate about the service side of everything," McDonald said. "Member service is key. It all starts with that. Let's say you want to use your members to grow your own membership, which is a sound, low-cost strategy. Your members need to believe in the credit union to be able to tell their friends and family members to come over to the credit union. They will only do that if your service is great."
Boosting Promotion, Not Budget
ONTARIO, Calif.-Carol Payne, VP-communications and marketing at the California and Nevada Credit Union Leagues, said that for many CUs this year growth will hinge on finding ways to step up promotion without boosting the budget.
"A nice start on a limited budget is incorporating new ideas and techniques within credit union websites and e-communications," Payne said. "When you send out an electronic newsletter, include video that promotes your products and services. Perhaps use member video testimonials," which Payne reminded are more powerful that print.
"Determining the ROI for the credit union, and garnering better metrics to validate the strategy for implementing marketing campaigns will also be critical in 2010," Payne added.
