Strategies for Credit Union Resilience in 2024
By Matthew Stratford, Marketing Manager, CNote
January 17, 2024
It may be a new year, but credit union leaders remain focused on the same important task: serving their members. To do so, these leaders are determined to find solutions for hurdles like deposit scarcity and new member recruitment. Here, we offer actionable tips for your credit union to tackle these challenges head-on.
Strengthening Through Community Partnerships
Community partnerships offer a robust support system for credit unions aiming to bolster resilience in the new year. Within this ecosystem, various avenues exist, including collaborations with fintech companies. These partnerships can aid in addressing key concerns faced by credit unions such as cybersecurity, digital advancement, and deposit growth. Additionally, coming off a year where 70% of credit unions said that growing deposits were a priority, a partnership with CNote is a lifeline to accessing no-cost, sticky deposits.
Furthermore, inter-credit union partnerships present an opportunity for collaborative problem-solving. By engaging with other credit unions with similar member bases, institutions can glean insights, learn from successful strategies, and collectively innovate to address shared challenges. This exchange of ideas fosters a spirit of cooperation, driving positive change across the credit union landscape.
Embracing Digital Transformation in Marketing
Engaging in innovative digital marketing strategies holds the key to connecting with members and the community in unprecedented ways. Implementing user-friendly digital platforms isn't merely a convenience – it's a strategy to attract and retain new members.
A recent Fiserv study revealed a 29% higher net profit for digitally engaged credit union members compared to non-digitally engaged counterparts. The study also found a “strong correlation between digital engagement and net profit, product holdings, balance growth and transaction activity.”
Utilizing Digital Ambassadors
A recent study from Gallup highlighted the importance of digital transformation as credit unions attract younger members. The study emphasizes how the age gap between the average credit union member and the median American is substantial, around 14.5 years. To bridge this gap, they advocate for utilizing credit union employees as educators to familiarize members with the spectrum of digital tools available.
Gallup's research further underscores the power of this human interaction in driving digital adoption, revealing that “human channels are three times more effective in driving digital adoption than any other communication form.” Empowering staff to become digital ambassadors allows credit unions to demonstrate the convenience and security of digital transactions and offer personalized guidance, supporting members through a seamless transition to online platforms.
As credit unions venture into the new year, the path to success lies in strategic resilience. By forging impactful community partnerships, embracing innovative digital marketing, and empowering digital ambassadors within their ranks, credit unions can navigate challenges and capitalize on opportunities that best serve their members.
Connect with CNote to learn more.
CNote is a technology platform that provides a sustainable flow of non-member deposits that are low-cost and deliver consistent value. This service is available at no cost to CUNA member credit unions as arranged by CUNA Strategic Services.