NCUA Growth and Retention
Just a reminder that now, credit union membership requirements are broader than ever. Be mindful of this when marketing your credit union. It used to be that joining was reserved for those who were part of a specific class or group. For instance, a power company may open a credit union account to serve the financial needs of its employees. Immediate family could also become members and were encouraged to do so, but that is where it stopped. Nieces, nephews, extended family... they were not allowed.
However, as competition increased from local banks with national brands and other larger financial institutions, credit union membership experienced a decline. Loan products were modified to adjust for competition and make the offerings more attractive, but the convenience of location was winning in the end. It was time to make a change so credit unions could have access to a larger market share.
As a result, the NCUA’s membership rules were opened. While credit unions must still have a defined field of membership, relaxed membership guidelines make qualifying easy. For instance, at the University of Wisconsin Credit Union, the only requirement is that you take at least one class.
It is not as hard to join a credit union as it once was. The membership rule change was a good move on the part of the NCUA for the industry as a whole. The change directly affects present conditions, while broadening the path for future growth. Rarely does a rule change positively affect present and future conditions. When it does happen, it’s a huge win/win. This is why credit union membership will continue to grow, and retain most of its current membership too.
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To read similar articles please visit Oak Tree Business Systems, Inc. May 2016 Advantage – Credit Union Trends.
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