Challenges are one of the constant things in this world, especially for businesses, companies, and financial institutions. And credit unions are no exception. There will be a lot of victories and successes along the way, but there will also be struggles and difficulties. But these are all parts of the journey. The greatest accomplishment then would be turning these challenges into opportunities – opportunities for growth, opportunities to be better and to be able to serve your members the way they deserve.
Here are some of the most common challenges faced by credit unions and a couple of quick tips where to turn for the solution.
1. Stagnant membership
There are many credit unions who have seen no growth when it comes to their membership from the year before. And this could be because of many factors. However, the good news is that there are now several customer groups that are ripe for membership. One of those that you should never miss is the millennials. Millennials are said to be the future of credit unions. Maybe it’s about time that you tap on these potential members and target your marketing initiatives to this group.
2. Growing member relationships
It is not enough for your credit union to have as many members as you can. You also need to think about how you are growing your relationships with them and how they are maximizing your products and services. Therefore, your next strategy should revolve around encouraging your members to use more of your products and services.
3. Increasing self-service channels
More and more people today, especially millennials, are into convenience. That’s the reason why even when it comes to their financial institutions like credit unions, they would rather use self-service channels to make their transactions a lot faster and easier instead of doing their transactions in a bank. If you do not have this technology yet or maybe you are just starting out with a few ATMs, you might want to increase these channels to improve your member experience.
4. Digital transformation
The world has evolved so much because of the advancement of technology. Because of this, most companies had to keep up with the change and had to cope with digital transformation. Credit unions also have to go through the same and they have to put in efforts to stay connected to members digitally. While this offers many benefits and opportunities, there are also a lot of risks that go along with it. Aside from the risks, there should be a clear plan and strategy on how digital channels should be utilized and maximized. This will all have to start with knowing and understanding the needs of your members. You need to find out what they like about digital. This way, it will be easier for you to assess the services that you need to provide them.
5. Hiring effective employees
Credit union members do not have all the time in the world to listen to your offers. When they go visit a branch, most of the time, they simply want to get it over with their transaction and leave. In this case, what you need are employees that will be effective in holding their attention and be able to communicate with them, so that the time your members spend with your employees will be valuable. You need employees who can make your members’ visit impactful. This is one of the things that you should bear in mind the next time you hire more employees or maybe you can do training for the existing ones.
6. Driving additional income for the organization
The success of your credit union largely depends on your members. So when you get to grow in membership, the next thing you need to look at is the number of services they avail from your credit union. Then, you develop a strategy to get your members to purchase additional products from you instead of getting it somewhere else. These are just some of the things that you can do to drive additional income for your organization. These are all challenging stuff that your credit union is facing right now, but there is always a solution. Just follow the tips outlined, and you’ll be on a path to rising above your challenges.
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