How An Investment Program Can Benefit Your Credit Union

Large and Small, Successful and Struggling Credit Unions Alike Have Experienced Measurable Success From Providing An Investment Services Program.


Success stories about investment services programs in credit unions are popping up everywhere, and they’re not just from the biggest players in the industry. Credit unions of every size and stature can speak to the broad range of contributions an investment program has made to their members and corporate objectives. Their experience shows that an investment program can help a credit union:

  • Better retain existing members
  • Grow membership
  • Grow deposit and loan balances
  • Motivate and excite employees

The case study of a marketing campaign by Addison Avenue Federal Credit Union (AAFCU) is a good example of these benefits. While preparing a checking account marketing campaign, AAFCU partnered with their investment services division, Addison Avenue Financial Partners, to offer investment options to their members. AAFCU’s approach was to offer a link between member checking accounts and their investments. Their campaign led with the investment service initiative supported by the checking account option, instead of vice versa, and checking accounts increased by 350% as a result. Because staff in the credit union saw real gains, rather than cannibalization, from the investment program, they began to communicate and work more effectively with the staff on the investment side.

Based on studies done by the Raddon Financial Group, approximately 2% of credit union households have investment accounts through their credit union. The top performing investment programs have been able to penetrate as much as 13% of their households, with those loan and deposit balances up to 40% higher than non-participant accounts. This further demonstrates how investment programs encourage members to ‘grow roots’ in their financial institution.

A concern often heard throughout the credit union community is that assets from basic services such as checking and savings will only be transferred to the investment program. It has been found that approximately 80% of the investment contributions originated from external sources and not from their credit union depository accounts. Credit Union Times recently reported that Orange County California’s credit union brought its investments division in-house resulting in increases in assets under management (+ $11.5 million) and program participation (+540 members). Additionally, opportunities for cross-selling of products and services flourished, generating $3.6 million in new business in one month and encouraged interaction across departments within the credit union.

To learn more about how an investment services program may benefit your credit union, join us for the webinar, “ Performance, Productivity & Profitability Metrics for Investment Services Programs” .




May 15, 2006


  • Timely and important. If we don't provide investment services to our members we send them down the street. In 2006, convenience trumps loyalty. Patti Branco 903-451-9800