Spokane, Wash. – At the start of his breakout session during the Northwest Credit Union Association's MAXX Convention Tuesday, CUNA Mutual Group Vice President of Credit Union System Relations Gerry Singleton asked attendees to take the piece of paper and pen in front of them, and close their eyes. He then instructed them to draw a detailed scene including a house, tree and bird's nest, while moving from one side of the page to the other.
The disorganized, jumbled drawings that resulted served as a reminder, he said, of the importance of having a plan. Had attendees known what they would be drawing and in what order, their pictures would have turned out clearer.
Singleton followed by presenting a useful plan for the credit union leaders – how to attract non-engaged credit union members and non-credit union member consumers. These consumers fall into three key opportunity segments: Those who are credit union members, but say it's not their primary financial institution; those who have a credit union product, but don't consider themselves credit union members; and true non-members.
The key, he said, is learning about their needs and “meeting them with the right message where they are.” For example, based on research conducted by CUNA Mutual Group, nearly half of millennials who use a credit union joined due to a recommendation from a family member or friend, so referral programs could come in handy. “Referral programs work if they're executed properly,” he said.
Singleton noted among members of the three opportunity segments, according to the research, the four top things that would motivate them to switch financial institutions are a better interest rate on a savings account or investment product, a financial incentive for opening an account, a better interest rate on a loan and access to free financial counseling/planning services such as workshops. In fact, a significant portion of consumers from the three opportunity segments, including 56% of those with an annual household income of less than $35,000, do not have a savings account at all. Additionally, consumers from these segments are more likely to care for aging parents, CUNA Mutual Group found, giving credit unions opportunities to meet financial needs that arise from providing elder care.
Giving credit union leaders some final food for thought, Singleton said when asked what their ideal banking relationship would look like, consumers from the three opportunity segments agreed it should look like a relationship with “a family member who has my best interests at heart.”
The MAXX Convention kicked off Monday in Spokane and runs through Wednesday. Around 500 professionals from credit unions in Oregon, Washington, and – for the first time this year – Idaho, are in attendance.
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Natasha Chilingerian
Natasha Chilingerian has been immersed in the credit union industry for over a decade. She first joined CU Times in 2011 as a freelance writer, and following a two-year hiatus from 2013-2015, during which time she served as a communications specialist for Xceed Financial Credit Union (now Kinecta Federal Credit Union), she re-joined the CU Times team full-time as managing editor. She was promoted to executive editor in 2019. In the earlier days of her career, Chilingerian focused on news and lifestyle journalism, serving as a writer and editor for numerous regional publications in Oregon, Louisiana, South Carolina and the San Francisco Bay Area. In addition, she holds experience in marketing copywriting for companies in the finance and technology space. At CU Times, she covers People and Community news, cybersecurity, fintech partnerships, marketing, workplace culture, leadership, DEI, branch strategies, digital banking and more. She currently works remotely and splits her time between Southern California and Portland, Ore.
