FORT WAYNE, Ind. — It's no mystery to Public Service CU members how much the credit union's lending program is saving them - the total is right in the middle of the CU's home page.
A regularly updated "ticker" shows how much refi savings members have received this year, and is just one of the steps Public Service has taken in 2013 to boost lending to better than 9% annual growth. While it might not be the most critical step in the effort, the ticker, according to CEO Carolyn Mikesell, is the most noticeable.
"We are telling our members that we can save them a lot of money by bringing their existing loans to us and refinancing. This way we show them - and how much," Mikesell said.
By the end of October, the savings tally board read: "Our members have saved over $430,931 by refinancing their debt in 2013."
Staff who save members a sizeable amount via refis each month are featured on PSCU's website along with member testimonials.
Big Boost
The numbers on the ticker got a big boost early in the year when the CU ran an eight-week loan recapture program February through March that doubled loan volume over the same period last year. "We were shooting for a 33% increase and we reached 100%," said Mikesell.
The promo emphasized the $27 million-asset credit union's everyday low rates, which at the time stood at 2.39% APR for a 36-month new car loan, 9% for a personal loan and 3.5% for a 15-year fixed mortgage.
The CU leverages its MCIF system to identify where members have loans and at what rate. Mikesell said with a few mouse clicks the credit union determines which members it can help, and then follows up with direct mail and e-mail.
"We explain to members how much we can save them on their current loan," said Mikesell, who added that the MCIF system is very flexible, allowing Public Service to target opportunities. "For example, I know the bank down the street has high rates. I can look at just our members who have loans at that institution. Maybe we focus only on credit cards or mortgages. The system lets us segment and target."
PSCU also introduced a sales culture, for the first time moving to formal incentive programs. But Mikesell said she believes in incentives that motivate and reward the staff as a team. "We run 'all or nothing' incentive programs.
If everyone meets goal, everyone receives the incentive. If less than 100% meet goal, then no one gets the incentive."
The CEO contends the approach creates a greater sense of teamwork among staff and leads to friendly encouragement among the group - which the credit union nudges along by providing weekly individual performance numbers the entire staff sees.
Employee training has played a role in the lending success, as well, covering not only loan sales but credit insurance from CUNA Mutual Group. Sales of credit insurance have taken off, according to Mikesell.
"We have seen consistent upward growth in the number of protected members," she said. "From being almost non-existent to now eligible loan dollars protected have grown to more than 30%."
Dawn Parrish, sales executive for CUNA Mutual Group, who partnered with Public Service to initiate the training, said what's the lending focus at PSCU is key. "They say breakfast is the most important meal of the day. Well, lending is breakfast for credit unions - the most important program they have," Parrish said.
