Sign In To Keep Reading!
Need To Register?
Thank you for your interest in reading the fantastic content we have on CreditUnions.com! All users must log in to read, research, browse, and have fun on CreditUnions.com. It's free to create an account.
Learn What You're Missing
Upgrade Your Subscription
Back to CreditUnions.com
Read & Watch
Deposits & Payments
Operations & Technology
Search & Analyze
Find A Credit Union
Find A Credit Union Executive
Build A Peer Group
Strategy & Performance
Anatomy Of A Credit Union
Market Share Guides
Credit Union Directory
A Forward-Looking Approach To ERM
The Role Of Member Value In Credit Union S...
Biometrics Bests Old School Banking Securi...
Key Advice For A Credit Union Turnaround
A Strategy To Return Value To Members
A Check Hold System Boosts Member Service
A $10 Incentive To Move Members To Mobile
Kathy Martin On Leadership
Lessons From A 12-Month Turnaround
How To Score With HELOCs
Gauging Risk Is Key For Auto Lending
Central Strategy Supports 3X The Lending
When Is It High-Time To Legitimize Your Product?
4Q Data Uncovers Organic Growth In Montana
Juntos Avanzamos, Hitting $1B, And Loan Participations
Earn The Hispanic Seal Of Approval
Build Business With Latinos
Win The War Of The Inbox. Here’s How.
4 Alternatives To Facebook And Twitter
How To Boost Retention, Reduce Attrition, And Improve Member Engagement
12 Ratios For Marketing Managers
Leaders Credit Union Takes The Lead In Digital Innovation
Acting for the member- Who says they do it, why and if they really do
Opportunities in the Midst of Uncertainties
Restoke the Fire
Public Publicity of the Best Kind
Post-Employed Members Provide A New Challenge and Opportunity
Dec. 30, 2002
Same mentality of S&Ls in the 80's. They went for services that were out of their "niche" and look at what happened. I was a S&L executive in those days, I don't want to see it repeated in the credit union industry. The S&L's that stayed with Savings and Mortgage Loans and didn't get into the "business" activities are still with us today.
But remember -- you cannot be ALL things to ALL people. Credit unions are expanding their fields of membership all over the country. And yes, credit unions have been the best kept secret forever -- but don't confuse field of membership with your target audience. If you expand to include your entire State (for example) who within that State are you going to target? What's your niche? Figure out what you do best, crank it up, and forget about the rest!
However, Mr. Callahan should have used some qualifiers on mortgage loans. For example, credit unions should not be loading up on low rate mortgages and holding those on their books. They should be selling them and possibly retaining the servicing. I believe this might be what his credit union is doing. For him to make a blanket statement to make all the mortgages you can could be interpreted by some credit union managers incorrectly.
How about marketing to the largest growing minority group in the country...Hispanics? I translate marketing materials for credit unions. If interested in having your marketing message available in Spanish, email email@example.com.
I agree that mortgages are a core product and can help retain a member's business - however - this should not be done regardless of price/rate. In today's low rate environment, fixed rate, long-term mortgages can cause future problems if not handled appropriately. E.g., Mr. Callahan should mention a few more details such as, fixed rate or ARMs, what happens after originating the mortgage (selling w/ servicing retained, or leveraging w/ FHLB borrowings, etc.). If a credit union has 20%-30% of its assets in long-term fixed rate mortgages, its strategy probably should not be to get every mortgage of every member.
Interesting concept on Mortgages
Credit Unions also need to understand how to hire and train their people to sell these concepts to their members.
When Is It High-Time To Legitimize Your ...
Win The War Of The Inbox. Here’s How.
Acting for the member- Who says they do ...