By Christian Mullins As credit unions plan for their future, there are plenty of avenues for growth and expansion. Since I entered the credit union industry in the mid 1990s, community charters have become commonplace. Auto lending, the cornerstone of the credit union loan portfolio, has been joined by mortgage lending. And small business loans, currently capped at 12 percent of total credit union assets, may soon be a presidential signature away from becoming the industry’s next great lending frontier. On the savings side, Roth IRAs are barely a decade old. We’ve seen the advent of health savings accounts and certificates with add-on or rate bump features. ATM networks offer the flexibility of accessing funds at thousands of locations without facing a surcharge. Accounts are now federally insured to a minimum of $250,000, and for members with higher balances, a little creativity in account structure can easily push that number much higher. But the options don’t stop with expanded charters or additional lending and savings products. The majority of credit unions now have an Internet presence, and almost all of those offer online banking. Every week, more credit unions add mobile services, and the greatest equalizer of all, shared branching, has barely begun to scratch the surface of its potential. All these changes are beneficial and it’s necessary to offer as many products and services as your budget will bear, but in the mad dash to make sure your credit union has the latest and greatest to both retain and add new members, there is a problem: With the exception of shared branching, banks offer the same products and services. These new or enhanced products don’t give credit unions an advantage; they merely level the playing field. For all the deregulation and fancy products and services, it is still the human factor that determines the long-term success of a credit union. Members expect competent, efficient and friendly service. They understand that mistakes can and will happen, but they want a quick resolution to their concerns. Most importantly, members want to feel, not be told, that their contribution to their credit union matters. It is here that credit unions should focus much of their efforts, because a sustained relationship can be as simple as treating each member respectfully. In the race to keep up with the Joneses, this is something that is often neglected but the easiest to correct. As members have less frequent contact with credit union staff, each interaction carries more weight. A member who does business at the credit union weekly is more likely to forgive one poor encounter than one who visits the credit union only once or twice per year. However, this also means that a truly positive experience carries more weight as well. Many members have accounts at other financial institutions, and member service may be the difference in where they focus their future banking. Whether a credit union has $5 million in assets or $5 billion, every interaction, in person or through the call center, will either enhance or fracture the member/credit union relationship. Christian Mullins is a strategist for the credit union industry and author of the CU Potential Blog. Read another post by Christian. Read another post about the importance of making every member interaction count.
