Alliant Shares Growth Lessons

The Chicago-based Alliant Credit Union ($19 billion in assets) has been around for nearly 90 years. As officials with the credit union put it, the credit union has grown substantially in that time – but the bulk of that substantial growth has been truly realized in the past 10 years. In the past decade, the all-digital credit union has grown more than 200%, and in the past two years executives have seen close to 40% growth in assets and membership, which now stands somewhere just above 825,000 members. The growth has been so fast that the most recent official numbers filed with the NCUA in June had membership at 809,880. The numbers have been moving upwards so quickly, it’s like watching the old National Debt Clock in New York, but for counting much more positive things.

CU Times had a chance to speak with Alliant Chief Digital and Marketing Officer Sumeet Grover about the credit union’s lessons of growth and stability and what areas it is focused on to continue this kind of trajectory. From Grover’s perspective, Alliant approaches its growth goals in the form of a three-tiered strategy.

Grover: The first is our focus on member experience through digital innovation. So even though we are thinking and we are talking about growth, growth is a function as a byproduct of providing that best possible member experience we can and driving that digital innovation. The second I would say is the value proposition. During a piece of the past two years, we’ve seen a lot of rate sensitivity due to macroeconomic conditions. We have been ahead of that curve. We have ensured that we can provide the best value as a true credit union for our members – and that has helped. And the third I would say are very effective strategies, be it marketing strategies or member experience strategies, even when they call us or go to our website and ensuring that we can provide the best service to them. So in a nutshell, what ends up happening is our focus tends to be ‘Let’s deliver speed! Let’s make it a very easy experience for our members and let’s ensure their security because this is a financial services product.’ So that’s kind of what’s helped us drive our growth and momentum.

CU Times: Let’s go back to your macroeconomic comment. Does Alliant’s digital-only mindset allow you to almost ignore the tumultuous economic times we’ve experienced on a day-to-day basis in the past two years?

Grover: To a large extent, yes. But there is an element of rates as well, for sure, like macroeconomic conditions. Members are mindful, right? At least for the past couple of years, they have gone through ups and downs, and they believe in the credit union because the credit union will provide them the best possible value. So we don’t ignore that at all. But for sure, having that additional [digital] focus has really helped us. Especially coming out of COVID, we haven’t had the need to focus on our branch network. We didn’t have one, so our undivided attention was on digital innovation, right? [It was on] member experiences and looking at the journeys where there might be certain potential pain points, and how do we simplify that? For example, we launched last year our deposit account opening process digitally. We already had a digital process and we enhanced it substantially. We were able to drive extreme speed and agility in terms of members and our potential members to open a new account and then start using that account. And that was leading edge for us. So we were able to focus on that and less on, you know, the day-to-day.

CU Times: Some months ago Alliant launched a ‘Select Employee Group’ product and service. How has that effort played into the growth you’ve experienced?

Grover: So our select employee group strategy is critical for our growth, for sure. It’s a key element for that. We partner with organizations and companies in general to provide exclusive financial services to their employees at no cost. Now, it’s not just about the growth, but it’s about building those meaningful relationships and promoting that financial well-being in the communities we serve. So these programs don’t just hold great promise for growth for us, but for the thousands of employees that are part of the tech partners. So it gives us a few advantages: One, it helps us expand our membership base, welcome new members and members from different sectors. We appreciate that. It also provides us [the ability] to deepen our relationship in those communities and with those industries that we are serving. And being that trusted financial partner to those employees helps us create our brand and spread our reputation and benefits to them as well. So we see it as going hand-in-hand. It’s not just about getting new members through that, but it’s about providing the best value to employees of the organizations that are part of our network.

CU Times: It sounds like you’re saying growth isn’t just a number, it’s a relationship?

Grover: Sure. I would say three things. The success of the financial industry hinges on adapting to our members’ changing needs and preferences. And when we prioritize members above all else and tailor our services accordingly, we build that trust, we foster loyalty and we establish that enduring relationship. So I would say that is first. The second one I would say is more in terms of our investments, and in our case, more so the significance of investments in digital infrastructure. This is an era marked by rapid technological advancements. And to stay competitive in this evolving financial landscape, credit unions have to prioritize the development of the robust digital platform. It’s not only enhancing that overall experience, but it’s also ensuring that we are able to meet the needs of digitally-savvy members. And then third I would say is strategic partnerships. In our case, for example, either in the community or through ‘SEG’ relationships, select employee group relationships, that collaborative effort and partnership has been instrumental, and we feel that relationship can help us tap into new markets and new demographics, ultimately broadening our reach and extending our services to a wider audience.

CU Times: Where are you seeing the most growth right now?

Grover: I would say our high yield savings accounts and our checking accounts, they have experienced significant growth and competitive rates help play a role for sure, but also that trust and loyalty we have with our members. We have also seen growth in our lending products. I will say one of the bigger membership growth drivers for Alliant remains our commitment to better-than-bank rates, our personalized member services and our dedication to putting members’ financial interests first. That’s kind of where the growth is occurring really.

CU Times: I’m wondering how you view competition? Or who is your competition?

Grover: I think the focus is on who can provide the best possible services or experiences a member is looking for, irrespective of a specific product, but in terms of a relationship. So if I’m digitally savvy and as a consumer, as a member, I’m logging on to my credit union’s website or mobile app. Do I have access to all the features and capabilities that I want? Is that access smooth and easy? Is that security and privacy available so I feel that I’m in safe hands? Any institution providing that now has to face that question the members have, ‘Hey, can you do it faster? Can you do it more easy?’ And I feel that’s kind of where we compete and that’s kind of where we want the leading edge. I’m not waiting for innovation to come to me. I’m focused on, how do I drive innovation, understand my members’ needs, and build those capabilities even before the members might be proactively asking for it? So when they need it, it’s there.