LIMA, Ohio-Retaining members comes down to showing them that the credit union is different than any other financial in the market, according to Superior FCU here.
Superior Federal pursues that strategy by being heavily involved in the community - so much so that it has become the number-one financial in many local consumer surveys-and by making sure it provides the "personal touch."
Being seen as an integral part of the community has resulted not just from SFCU sponsoring and supporting local events and charities, but from credit union staff being active on local boards. But image plays only so far in a retention strategy, CEO Phil Buell admitted, adding keeping members comes down to "delivering good quality member value that they can't get anywhere else."
That thinking has slowed attrition and doubled the 44,000-CU's membership since 2003. "We are focused on taking care of our community and our members," Buell said. That's clear to members not only through the CU's high service levels, but also from keeping all of its business functions in house, as opposed to using third parties, added Buell.
One key piece of the in-house process, insisted Buell, is mortgage servicing. Claiming 30% of the local mortgage market, Superior FCU sells many loans to the secondary market. "We sell a lot to Fannie Mae," Buell said. "We now service $450 million in loans and we are just a $325 million credit union."
Sending servicing outside the credit union would not help SFCU manage the member relationship, and would make it harder to add personal touches, Buell insisted. "We manage that mortgage loan as an investment for the member. Last year when rates dropped from 5.75% to 5%, our staff called each member who could benefit and said we could save them money with a refinance."
That cost SFCU interest income on loans on the books, but the move has been repaid in member loyalty, Buell said. What may also make members more dedicated to the credit union, especially those who left their bank, are sticky accounts, and Buell pointed to two that the CU believes are the most important and will be emphasized through cross-sales: "If you really want to keep a member you have to have two things, their mortgage and their checking account."
