CUNA Mutual Group Speaker Tells Online Discovery Conference Audience Don’t Be Afraid to Focus on Current Members
MADISON, Wis. – Credit union members are looking for three things when it comes to lending: guidance, solutions, and credit with reasonable terms, attendees of the third annual Online Discovery Conference were told Tuesday.
Patrick McElhenie, sales planner for CUNA Mutual Group, discussed challenges the current economy presents, what’s in store for credit unions, and lending opportunities credit unions may be missing during his presentation, “Translating Lending Trends into Strategies to Fuel Growth.”
“We’ve seen major setbacks in household net worth,” McElhenie said. “Some recovery has occurred, but households don’t have the resources they once did, which we see in members’ spending and borrowing habits.”
When it comes to lending, credit union members are more cautious today because of the current economic environment and the financial obligations they already hold, McElhenie said.
“There’s a lack of household demand for loans because people are paying down their debt and spending less.” McElhenie said. “But, keep in mind; people are also looking at lending differently, too. People don’t ‘go and get a loan’ today, they see financing as a product feature, making point-of-purchase financing boom.”
Despite economic changes and member habits, the key is to focus lending efforts on existing members first, McElhenie told attendees.
“Let’s not forget, our members are our owners, but more importantly, they will do the advertising for us based on their satisfaction,” McElhenie said. “Quite often credit unions are all too timid in sharing what they can do for their members,” he added.
Many don’t know where to begin, though. A good place to start is by looking for loans to rewrite for your members, McElhenie suggested. “Help those who are struggling with onerous terms from other lenders.” Then, begin looking to young borrowers to develop your next generation to replace those baby boomers, who are no longer borrowing.
McElhenie reminded credit union attendees that not everyone is in financial trouble, or about to lose their job, so it’s in the credit union’s best interest to help these credit union members take advantage of some great bargains in the home and auto market, especially young members just beginning to build a life and home. Begin a first-time borrower program, McElhenie suggested.
To grow your lending business, consider adopting a “we are one” attitude at your credit union for auto loans by issuing the same rates and terms for direct and indirect loans, McElhenie suggested. “Most members will gravitate to a point-of-purchase transaction, but, remember, the goal is just to get the member’s loan,” McElhenie said.
“And don’t forget about your community. The community is your yard, don’t neglect it,” McElhenie said.
Reward card programs that give back to the community have had large success, too. One such example is the “HutchCard,” a Visa card issued through Hutchinson Credit Union in Hutchinson, Kansas. The credit union raised more than $200,000 for the Hutchinson Zoo and city parks over the 10 years of its existence, McElhenie explained.
In summary, McElhenie said, “You must create your own recovery. The economy will continue to move slowly forward, interest rates will remain low and consumers cautious, but you have the tools to help your credit union grow. Focus on your members and community, the rest will come.”
Online Discovery is CUNA Mutual Group’s Web-based equivalent of a face-to-face conference without the associated expenses or time away from the office. The free, online event attracted a national and international audience of more than 1800 credit union and league staff. The conference aims to help credit unions solve problems, face challenges, and address opportunities all from the convenience of their computer.
CUNA Mutual Group insurance, retirement and investment products provide financial security and protection to credit unions and their members worldwide. With more than 75 years of true market commitment, CUNA Mutual Group’s vision is unwavering: To be a trusted business partner who delivers service excellence through customer-focused products and market-driven insight. More information on the company is available on the company’s website at www.cunamutual.com.
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Life, accident, health and annuity insurance products are issued by CMFG Life Insurance Company. Property and casualty insurance products are issued by CUMIS Insurance Society, Inc. Each insurer is solely responsible for the financial obligations under the policies and contracts it issues. Corporate headquarters are located in Madison, Wisconsin.