CUNA is now America’s Credit Unions. A stronger voice to advance the credit union industry.
By Ken Lowy, NewtekOne May 13, 2024
Due to the historical nature of finance, credit unions operate in a highly, often hyper-competitive, environment. The reality of this is just one reason why credit unions are continually forced to adapt and change to meet the needs of their members. The pressures of constant innovation, though, can have its advantages.
Case in point: one competitive differentiator that doesn't get enough attention is to launch a branch cash advance (BCA) program. A BCA program offers members immediate cash advances that can be very appealing, especially for those in an urgent cash crunch. This launch can also help bring in new members from the community. That in turn, can help diversify a credit union's lending portfolio and help increase the bottom line. Especially when there's an excellent launch strategy behind the promotion.
In short, BCA allows credit union members to access funds instantly from their pre-approved credit limits. This is not a typical loan in that it’s quicker, bypasses the usual lengthy approval process, and allows members to tap into their own money when they need it urgently – almost like an immediate withdrawal.
Here are three reasons why BCAs can be a win-win for both a credit union and its members:
Kicking off a cash advance program can be an excellent strategic move. For a successful BCA program launch, consider these best practices:
Effective management of a cash advance program requires:
When credit unions focus on these areas, they ensure cash advance programs are not only effective but also secure and compliant with industry standards. It also offers peace of mind to members.
A BCA program can be a significant step forward for credit unions. That's because, in addition to building a stronger portfolio of services, BCAs play a crucial role in immediately addressing members' financial needs. This can add a welcome boost to member satisfaction and reinforce to the community that credit unions are the go-to trusted financial partner.
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