Turning Loans Into Members
One of the biggest challenges for credit unions when it comes to indirect lending is the quality of the relationship with the new member once the loan is made. Often, that member never interacts with the credit union beyond making a payment.
At FORUM Credit Union, Doug True said new loan applicants are automatically set up with a checking account to make their monthly payments. DFCU branch managers then call each new member to welcome them aboard and set up a payment date of their choice. They also offer a free gift if they come into the branch to open other accounts or services. True said Forum CU has had around a 10% penetration rate for new members in the first 60 days of operation.