2025 retail banking: 3 strategies to grow existing member relationships
In today’s challenging retail banking landscape, credit unions must leave no stone unturned regarding account and deposit growth. That includes the very profitable activities of “re-acquiring” and “re-engaging” your current accounts.
Despite the potential, only 30% of banking executives recently surveyed engaged in new member referral initiatives, and only 33% shifted their marketing and advertising strategies. Meanwhile, 57% added staff in revenue-generating areas, and 42% added new product offerings. These numbers suggest that while there is an eagerness to grow, some financial institutions may be focusing on the wrong areas—or at least are missing out on the low-hanging fruit of deepening their relationships with current members.
By employing tactics like targeted marketing, enhancing engagement, and leveraging referrals and rewards, credit unions can make their existing member relationships much “stickier,” leading to increased growth, loyalty and retention.
Here are three strategies that will help you tap into the growth potential of your existing accounts.
Strategy #1: Make referrals easier
Studies have shown that referred account holders are typically more loyal and engaged. Utilizing your existing members’ networks, referrals are one of the most cost-effective ways to drive organic growth. Making it simpler to refer friends and family doesn’t require additional resources; it just requires having the right system in place.
Strategy #2: Maximize opportunities through data intelligence
Data is one of the most powerful tools at the disposal of credit unions. Financial institutions around the world rated improving data & analytics (AI) capabilities and the use of insights as the most important retail banking trend of 2024.
But many credit unions aren’t taking full advantage of their data. By leveraging data intelligence, you can start targeted marketing campaigns that resonate with your existing members. This means getting the right products, services and messages in front of the right people at the right time through the most effective medium.
In addition to targeted marketing, data intelligence can improve the account onboarding process and help you “re-acquire” and “re-engage” existing inactive accounts, boosting transactions and engagement for stronger, more long-term relationships.
Strategy #3: Use automation to maximize your human capital
Digital solutions that automate processes can reduce your staff’s time spent on routine tasks, allowing them to focus on other areas of importance while maximizing growth in your current accounts.
Implementing a fully automated, tiered debit card rewards program is an easy way to create a new revenue source and make current relationships stickier without any extra work for your credit union. Members are willing to pay a monthly fee for benefits and services that are valuable to them. Plus, it increases loyalty and helps you become their primary financial institution (PFI) and the top card they reach for in their wallets.
Growth in 2025 requires looking within
One key to growth in 2025 will be not letting your current accounts slip away to competitors. Every dormant account is a missed opportunity. And every active account has the potential to become even more active.
The good news is that you already have the data you need to boost your referral, onboarding and engagement processes. All it takes is the right system to put it into practice efficiently and profitably. You can grow your existing member relationships with proven strategies that include:
- Digital account acquisition with an average return on investment (ROI) of 5-to-1 (and a guaranteed ROI of 3-to-1)
- Onboarding and engagement tactics that deliver an average ROI of 3-to-1 (and a guaranteed ROI of 2-to-1)
- A tiered debit rewards program that generates card swipes, revenue and loyalty—and costs absolutely nothing to implement
Now is the time to get your processes in place for more growth in 2025. Velocity Solutions has been helping credit unions utilize their data effectively since 1995, laser-focused on innovating our solutions at the pace of tech and banking evolution. To learn more or to schedule a demo, visit myvelocity.com.
