High-Net-Worth Members Offer Credit Unions Value

While credit unions are often associated with small businesses and local families, higher net worth individuals and growth companies actually have a long history with these financial institutions. In fact, many have their own brand of private banking or wealth management for individuals and larger companies. Because these types of institutions have a deeper understanding of personalized service and unique needs, the match actually makes complete sense.

Though some institutions may scoff at catering to this type of clientele, there are reasons to consider it. First, while private banking or wealth management may seem like an option for the ultra rich, it doesn’t have to be. For most, it is simply a method of managing money that is more complex than average. For example, a growing professional with multiple service needs, a senior interested in estate planning or a small business with overseas importing are just a few types of members who may consider high-net-worth banking and a credit union. The major difference is that the complexity of their issues makes it more likely that they will require a bespoke style service. On the business side of banking, today’s entrepreneurs are just as likely to serve customers down the street as they are to reach someone across the globe. These types of international transactions can also require a different approach than everyday banking.

It may surprise even seasoned bankers to see just how much of a growing and important sector this is across North America. But how does a credit union even begin to target this group? Here are five key considerations.

1. Retain and grow with your members: It is unfortunate, but some business or personal banking members leave their credit union brand after a certain financial threshold because they assume they will require a big bank for their higher-net-worth needs. Assure your members this is not true and apply your personalized, unique approach to their new situations. After all, a major selling point of high-income banking is above all a one-on-one relationship. Small institutions have already perfected this tactic.

2. The right products: It goes without saying that higher-net-worth members frequently require different products and services compared to an average middle-income earner. As an example, this type of client often prefers to manage their business and personal finances from a global perspective. It is common to have links to another country for product sourcing, holding property and more. As a result, it’s important your credit union can provide requisite international payment services.

3. Efficiency: This could be the most important factor for these members. They are likely incredibly busy and are used to working on their own schedule. This can make visiting your branch for a general transaction difficult, especially since many smaller institutions have limited hours. It is best to boost your online presence and make common services easily available, no matter the hour.

4. The digital alternative: Many credit unions offer innovative products but limit their use and require an in-person visit. This is particularly true for those that allow international payments. Because those dealing in multiple countries may have to adapt to their time zone, it makes digital alternatives more of a necessity. If your branch offers international payment services, make sure there’s an option for online or mobile transactions.

5. White glove service: This should be easy for most community institutions. When big banks try and attract new high-net-worth clientele, this is one of their key offerings. Those with significant assets may have less time and patience for an inconsistent experience. Luckily, credit unions are typically celebrated for their outstanding member service levels. If this is combined with addressing the unique financial needs of this new group, it could be a winning combination for any institution.

With new digital banking options and apps cropping up all the time, it is more important than ever for local credit unions to consider every type of client. The already established style of “community-centric” financial institutions, with their individualized approach and commitment, is a perfect fit to service the high-net-worth segment. International capabilities to compliment existing domestic services, combined with competent digital access and personalized service, will position your credit union for success.

Stephen Kuhl is Head of Financial Institutions and Strategic Partnerships for Western Union Business Solutions in Denver.