How to find deposit volume without exploding cost of funds
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Segment deposit offers and train frontline staff to navigate the fine lines between members’ goals and those of your credit union.
It is tempting to believe that a low cost of funds is synonymous with financial success, but there’s a fatal flaw in that thinking. Spread is required for credit unions to achieve high performance, but CUs also must have deposit volume. How much spread must they now give up in today’s rising rate environment to obtain that volume?
The question has had almost no bite for some 15 years. With rates at near zero, no one needed to compete for cash; it was everywhere, and it was nearly free. Now all that’s substantially changed.