“Awash in a Sea of Liquidity”
“Awash in a Sea of Liquidity”… That’s the cover story in the current Credit Union Magazine.
2009 was such a healthy year for deposit growth for most credit unions that many are flush with cash and seeking ways to turn those deposit dollars into loans to members. In fact, the article says that 2009 saw the fastest deposit growth since the 2001 recession.
While the author quotes the senior economist for the Credit Union National Association (CUNA) as suggesting several strategies for credit unions to pursue, one suggestion is to “scan members and ask them to refinance their bank loans at the credit union”
Great suggestion, but why not look outside your existing membership at the vast number of potential members in your community. Credit unions have always been looking for opportunity, and what a better opportunity than to identify those in your area who are paying much more than they need to for their existing loans. Show them how to save by refinancing with your institution.
In today’s economy, the tide has turned. Consumers are no longer Borrowing and Spending, they are Saving and Investing. Not only are they not Borrowing and Spending, consumers are looking for ways to decrease their monthly obligations on loans they already have….a great time to invite the community to join the credit union, show them a sizable savings on their monthly car payment, or motorcycle, or boat, or RV.
According to survey results posted in the Credit Union Journal, May, 2010, (source CU24) among the greatest challenges facing credit unions in 2010 were (in ranked order) “Attracting new members,” “Retaining existing members” and “Developing successful marketing tools.” Here’s a way to successfully face all three challenges at once with ongoing campaigns.
Also published in the current issue of Credit Union Magazine another survey on the Importance of Marketing Vehicles (Source: A survey of 105 marketing and business development leaders by Alterra Group, April, 2009) showed “Targeted direct marketing” as the number one vehicle, with nearly four out of five selections.
The Bottom Line: with many credit unions “Awash in a Sea of Liquidity,” looking for opportunities to lend, why not take this opportunity to extend a helping hand to your community and refinance those high-priced loans for your potential members too. Mail them a direct marketing invitation to join and save with their local credit union. They’ll love you for it and chances are they will open many more accounts than just an auto loan.
If you’d like to read the entire article, “Awash in a Sea of Liquidity,” by Dianne Molvig, you can find it here.