Retaining your most important asset – your members – can become challenging when member needs change. Credit unions changing to a community base must be especially sensitive to these changes, although other credit unions are not exempt. An evolving marketplace demands a continuous review of products to ensure that member needs are being met.
Improve member retention through better lending practices:
- Market Research: A community charter conversion requires extensive planning. All credit unions, however, should frequently review their membership base to stay ahead of demographic trends. Keeping a close watch on average incomes, local economic forecasts, and especially new real estate development can point to new lending opportunities.
- Efficiency: Consider expanding your lending guidelines or eliminating appraisal/title work for loans that are under a certain threshold. Expanding lending options for members who meet qualified criteria can help improve turnaround time and streamline processes. Increasing the maximum loan amount or decreasing the ownership/employment requirements may expedite loan approval for long-standing members without increasing the risk of delinquency.
- Cross-selling: Members who show interest in CD’s or other saving options may also benefit from the liquidity provided by a home equity loan, especially if they have a particular purchase or future event in mind. Promotions with rewards related to other services may strengthen your member relationships more than providing gift certificates or retail items.
Old Republic Insured Credit Services, Inc. (ORICS) can help put these ideas in motion to better meet your member lending needs. ORICS offers a variety of solutions for home equity and homeowner lending. ORICS has specialized in marketing credit indemnity loss protection* for over fifty years and has helped over 3,000 financial institutions increase loan volume. For more information, call 800.621.7873 or visit the ORICS website at www.oldrepublicics.com.
* Loss protection programs are underwritten by Old Republic Insurance Company