LONG ISLAND CITY, N.Y. — As distrust for big banks and investment firms lingers, credit unions have an opportunity to garner even more walletshare by providing a robust financial advisory service, according to one CUSO chief.
"I truly believe that credit unions are looking at the single biggest opportunity we will ever see in terms of members willing to embrace us," said Steve Ryerson, president of UNFCU Financial Advisors. "The membership wants us to do these things, needs us to do these things, and we have a responsibility to do it for them where practical. Credit unions that don't offer these types of services have significant challenges as we move forward in this financial environment."
Though the stock market has recovered substantially, last fall's crash still has many Americans rattled. Ryerson said UNFCU FA's client credit unions reached out to members during the collapse, bottoming and recovery to provide them with the best investment strategies possible at each stage. Combined with CU members' usual loyalty, the result has been markedly different than seen in the rest of the country, as account closures have not soared.
"On the investment side, what we're seeing from our personal experience is that most people are still fairly committed to their goals and objectives," said Ryerson. "On the membership side there is a hesitancy to commit new funds to the market, but there appears to be a little more positive sentiment."
While a number of members are still shying away from loading up with equities or bonds, the CUSO of United Nations Federal Credit Union has found recent success with its new focus on risk management. Ryerson said many members who may know how to diversify their investments do not have a strong handle on mitigating the risks of every day life with the help of auto, life, property and long-term care insurance products and its message is "resonating" with credit union members.
In addition to its insurance and investment products, UNFCU FA also provides a free counseling service for everyone at its client credit unions, even to those members who have not spent a dime with the CUSO. During these sessions, UNFCU FA professionals look over both the personal finances and investment portfolios for members; while they may include a soft sales pitch, there are many times when the members will be told that they're on the right track. Ryerson is convinced that this approach enhances the relationship between the member and client credit union as well as gives others a good impression of the CUSO.
"It is part of the member service commitment we have here. We believe that our objectivity is in the best interest to the member and will also benefit us in educating them and having them tell other members the service we provide," he said.
