GROWING YOUR CREDIT UNION. Ideas to Increase Your Membership in Today s Economy

Transcription

1 GROWING YOUR CREDIT UNION Ideas to Increase Your Membership in Today s Economy

2 What We ll Cover Your Current Field of Membership How Do You Determine Members Needs? Your Marketing Plan & Marketing Strategies Field of Membership Expansion Opportunities

3 Who are You Chartered to Serve? Do you know who qualifies for your field of membership? Has your sponsor company been acquired? Has your sponsor company changed its name? Obtain Section 5 of your credit union s charter 1. Contact your NCUA Examiner 2. Contact your Region s Division of Insurance 3. Contact State Supervisory Authority (SSA), if state chartered

4 Things to Consider Current Members ~ Family Members Potential Members 4

5 Don t Forget Family Members Definition Immediate Family Member Means Siblings, Stepsiblings Parents, Stepparents, Grand parents Children, Stepchildren, Adoptive Children, Grandchildren Spouse

6 Study Member Growth Trends Has your credit union experienced positive or negative growth trends? Understand your target markets. What target markets are growing? (Why) What target markets are contracting? (Why)

7 Review Internal Membership Data Membership Data Generate reports to identify demographic data. Determine if software vendor can provide demographic data (there may be a fee).

8 Methods to Identify Eligible Members Internet/Maps Sponsor Company or Associations Community Organizations Census Bureau and Labor Dept Publications Trade Groups

9 How Do You Determine Need? Develop a membership survey and ask the following questions: Are you using the credit union? Why? Why not? 1. What products and services are you using? 2. Do your immediate family members belong? 3. Is our location and our hours convenient? 4. What products and services would you like to use that are not currently offered? 5. Is our staff professional and knowledgeable? 6. Do you consider this your primary financial institution?

10 What is Marketing? Marketing is Establishing, maintaining and enhancing longterm relationships with members so both the credit union s and members objectives are met. Credit union s Objectives Members Objectives 10

11 Reasons to Market Your When Current you need Field to of develop Membership your credit union. How When Do you You need Determine to reinforce Members a positive Needs? image. Your When Marketing you need Plan to grow & Marketing your membership Strategies base. When there has been a change in your field of Field membership. of Membership Expansion Opportunities

12 Develop a Marketing Plan to Reach Existing and/or Eligible Members Step 1. Select Your Target Markets Step 2. Set Marketing Goals Step 3. Formulate Marketing Strategies Step 4. Measure Results 12

13 1. Select Your Target Market Step 1. Determine what demographic (s) your marketing effort will focus.

14 2. Set Marketing Goals Step 2. Determine what goals credit union management wants to achieve such as increasing members, loans and/or shares. Step 2. Make the goals realistic, achievable and measurable.

15 Great Member Service Good Products and Services Convenience On to Winning Strategies

16 3. Formulate Marketing Strategies Step 3. Step 3. Run newspaper or radio ads Promote excellent member service Develop a website Distribute brochures in lobbies at Select Employee Groups (SEG)s Step 3. Develop a Financial Literacy Program

17 3. Formulate Marketing Strategies Step 3. Distribute new members kits Develop a newsletter Step 3. Step 3. Use bulletin boards marketing promotional to SEGs Participate in sponsor activities

18 3. Formulate Marketing Strategies Step 3. Consider marketing efforts with an emphasis to the youth and young adults by using Twitter, Face Book, or other popular media Step 3. Recruit new businesses Step 3. Promote credit union membership as a benefit that can be added with little or no cost to the business

19 3. Marketing Strategy Examples Step 3. Promote Family Membership Provide gift cards for each new family member joining the credit union Attract Youth Accounts Coloring contests for kids or matching $10 deposits for youth savings are some ideas Step 3. Step 3. Financial Literacy Conduct a workshop or develop an informational pamphlet on how to improve your credit score, obtaining a mortgage loan, or balancing a checkbook for all ages Attend Sponsor Activities Have a booth at a sponsor event and give incentives to join the credit union such as $25 to open a new account, $100 if approved for an auto loan, or $150 if you bring an existing loan from another institution, etc.

20 4. Measure Performance Step 4. How do your marketing efforts compare to industry average? Step 4. Do you know for certain your marketing efforts are effective? Step 4. Are your members satisfied?

21 Keep A Record Repeat the Good Stuff!

22 Field of Membership(FOM) Expansion Why FOM Expansion? Expansion provides a viable option for credit unions seeking growth opportunities

23 Field of Membership Expansion Benefits FOM Expansion Benefits Diversifies your membership and risks Provides new markets and opportunities May mean survival of your credit union

24 Field of Membership Expansion Risks FOM Expansion Risks Lack of familiarity with new members Can damage relationship with sponsor May create additional compliance risk

25 Common Bond Expansions Your Single Current Common Field Bond of Membership Expansions How Conversion Do You from Determine Single to Members Multiple Needs? Common Bond Your Multiple Marketing Common Plan Bond & Marketing ExpansionsStrategies Field of Membership Internet Field of Membership Application (FOMIA) Expansion Opportunities

26 Single Common Bond (SCB) Expansions Occupational or Associational Common Bond Add contract employees of an occupational common bond Add churches of the same denomination

27 SCB Expansion Requirements SCB Expansion Cover letter to Regional Director Complete NCUA Form 4015 EZ

28 Multiple Common Bond (MCB) Conversion Requirements SCB to MCB Conversion Letter to Regional Director requesting conversion to MCB Complete NCUA Form 4015 or 4015EZ as applicable Submit letter from the group and bylaws if association for MCB

29 Multiple Common Bond (MCB) Expansion Requirements MCB Expansion Complete manual or Internet application. Complete NCUA Form 4015 or 4015EZ as applicable. Submit letter from the group and bylaws if association for MCB. Log onto MIA/NCUAgovLink.htm for the Internet application.

30 FOM Internet Application Criteria for Approval Group must have less than 3,000 potential members. CU must have less than a CAMEL 3. CU must have Net Worth of 6 percent or greater. Distance must be 25 miles or less.

31 Community Charter Conversion/Expansion Chapter 2, Section V, of the Chartering Manual Convert to or expand current community Cannot have SEGs & Community Charter Cannot add Underserved Areas to Community Charter

32 1. Community Conversion/Expansion Background Information Step 1. Federal Credit Union History Membership Penetration Step 1. Reason for Conversion Area Requested Step 1. Population Groups & Number of Members Outside Proposed Community

33 2. Identify Community Boundaries Step 2. Well-Defined Local Community (WDLC) is met if: within a single political jurisdiction Step 2. WDLC may be met if: Multiple contiguous if population < 500,000 or Metro Statistical Area (MSA) population < 1 million

34 3. Determine Proposed FOM Wording Example Step 3. Persons who live, work, worship or attend school in, and businesses and other legal entities located in geographic area

35 4. Community Charter Conversion/Expansion Step 4. Include at least two MAPS of the community with at least one statewide map highlighting the requested area

36 36 Map - Example 1 (Census)

37 37 Map - Example 2

38 38 Map Example 3

39 39 Map Example 4

40 5. Community Charter Package Includes Step 5. Step 5. Step 5. General Background Narrative Proving Local Community (if applicable) Proposed Field of Membership Wording Maps (Local and Statewide) Marketing Plan addressing how the community will be served Business Plan addressing how conversion fits CUs objectives and how management can support the plan. Pro forma Financial Statements for two years after conversion with assumptions Anticipated financial impact on the credit union

41 Understand your members and their financial needs. Offer the best products that meet your members needs. Make it easy for members to access your services. Consider FOM expansion for growth opportunities. 41

42 References Your Chartering Current and Field Field of of Membership Manual How FOM Do Internet You Determine Application Members User Instructions Needs? FOM Internet Application Frequently Asked Your Questions Marketing Plan & Marketing Strategies Field Letter of to Membership FCUs 03-FCU-05 Expansion Opportunities

43 Questions?