It can be in search of a checking account, a savings account, or a loan (such as that first mortgage) that drives a person to sign up for their first account at a financial institution, and oftentimes they go straight to the big banks, not knowing the cost of admission beyond the extremely effective advertising campaigns. Big banks are successful because they make so much revenue off of their customers. Oftentimes, friends and family members will be seen and heard complaining or struggling with high fees and monthly service charges, and more and more with no known recourse, and having to accept that this is part of the financial journey!
One of the first loans that most people tend to go for is the auto loan, and as a credit union, you can be that first direct or private party loan for a member. It would seem that a person seeking a loan for a car is more inclined to accept whatever loan they get from the dealer, but oftentimes, that is just as wasteful as getting a loan from a bank. A member of a credit union is often more likely to find better rates and acceptance for loans from their credit union, and that can save a lot of money on interest, fees, and other charges. Since members are not only customers, but owners vested in the growing concern of the credit union, it means they are investing in their own “business.”
Credit unions are more likely to take a risk for a loan with a member than a bank would be with a customer. This is why many would be willing to say that it is easier to get approved for a loan with a credit union than a bank. For auto loans, we have seen a rise in auto lenders undercutting the banks and credit unions, but an auto loan with a credit union comes with other benefits that are more than just purchasing a car for an impossibly low rate. It builds a relationship with that credit union, and when members are ready for their next credit card, mortgage, or business loan this can be all the difference in getting the loan.
A major focus of a credit union is to provide essential services and lending opportunities when your members need it most. As great as credit unions are with benefits and consistently low rates, it is almost impossible to operate without any revenue when providing unbeatable rates 24/7/365. This means that strategizing lending rate drops and promotional loans, home equity lines, and other services are essential to provide members with outstanding opportunities, keep up the revenue stream, and propel the credit union into the future! Strategy for promotional efforts can depend heavily on your field of membership, and when you analyze lending spikes! For example, some credit unions might see higher auto lending applications around Memorial Day in their communities. Or you can provide great consumer lending rates during the holidays!
Finding opportunities to connect with your members and provide the best services at the best rates at the best times is what makes the credit union difference, and drives trust and loyalty! Especially since most, if not all credit unions, tend to work off of the “3 Stakeholder Rule.” They are the members, the employees, and the credit union that they are concerned with, and many have learned that the more they look to the needs and wants of the employees and members then the credit union’s growing concern will be met. Banks tend to focus on the bottom line, and not so much on the people they employ or service.
Oak Tree keeps credit unions compliant and connected to their community growth through compliant forms and documents and many other services! Browse our products today and start expanding your services and membership: https://www.oaktreebiz.com/