Consumers are ready to spend. How can you make sure your credit union is their financial institution of choice?
On Friday, the Wall Street Journal reported on the rise in consumer spending, which increased 0.4% for the second consecutive month. The business news daily calls the economic recovery “sluggish,” but even modest gains reflect the growing stimulation of economic activity.
For consumers that want to spend, credit unions are helping them do so in a more responsible manner. Interest rates are at historically low levels, yet banks have increased their average credit card rate over the past 12 months to 14.7%. Conversely, credit unions lowered their average rates to 10.9% over the same period. Revolving credit is an important growth opportunity; read more about the 10 credit unions that are making major inroads in credit card growth.
Of course, before you can grow your credit card portfolio, your members need to have your credit card. The first 90 days of credit union membership is crucial. To create the most profitable members, you need to build solid relationships and engage your new members within the first three months. Several credit unions have notable member onboarding programs. Read about Hudson Valley’s strategy for inspiration on how your credit union can create memorable member experiences and build value that lasts a lifetime.
If you've already solidified a strong relationship with your credit union’s membership, take a look at this week’s featured CUtv Clip for ideas on market and demographic expansion. University Federal Credit Union launched its social media campaign as an outreach to Gen Y membership, but as Lyndee Bennett explains, the credit union is pleased by the range of demographics it engaged as a result.