3 Ideas to Solve Your Credit Unions Problems, by Solving Your Member’s Problems

Bo McDonald, President of Your Marketing Coby: Bo McDonald, President of Your Marketing Co

I saw this quote the other day, and though it speaks well to businesses, but I think the same can be applied to credit unions: “When you solve your customer’s problems, you solve your business’ financial problems.”

The woes of many credit unions are a lack of loans and members who don’t use the credit union as their primary financial institution. Let’s change a few words in that quote so it reads: “When you solve your member’s problems, you solve your credit union’s financial problems.” Now do you believe that? If so, you could make a lasting impact on your credit union for generations to come. And better yet, you could impact the lives of many members for generations to come.

Let’s take, for example, a $20million credit union in a rural part of your state. Unemployment is at 12%. More than half of the residents are living below the poverty level and the three remaining local factories are the main sources of employment. There’s a world of opportunity for this credit union. They can go above and beyond being a banking commodity that provides a checking account and car loan to anyone with a credit score over 680. Here’s a few examples:

  • What if this credit union changed its lending philosophy and looked at more than just a credit score? I’ve seen many credit unions turn years of red ink into black ink by consulting with Rex Johnson and using his HYLS system. Not only has HYLS turned unprofitable credit unions profitable again, but it has helped many members out of disastrous situations.
  • How many checking accounts do you turn away every month? What if your credit union offered a second chance option that had some tighter requirements and a small monthly fee in exchange for taking on that risk? I’ve seen several credit unions start offering this product. An overwhelming percentage of those members turned their financial situations around.  But they have also become model borrowers and huge advocates for the credit union that took the chance on them and helped when no one else would.
  • I recently saw a headline in our local newspaper touting the record profits of a local check cashing company. How can this be with credit unions offering record low loan rates, and check cashing companies with interest rates in the hundreds? I know not everyone can be helped, and not all risk is worth taking, But I’d be willing to bet that some members of your credit union are tied into this vicious cycle. And if given a hand out they would not only have a fresh start to their financial life, but they would be eternally grateful that someone treated them with an ounce of respect.

There’s just three examples of how a credit union can put some black ink back on the ledger by simply catering to the needs of its members. I can’t think of many issues on your credit union balance sheet that can’t be solved by following this guideline:

“When you solve your member’s problems, you solve your credit unions financial problems.”


Bo McDonald is president of Your Marketing Co, A veteran of major market media sales and programming, Bo got his start in radio working for a variety of large radio conglomerates including Clear Channel Radio and Citadel Broadcasting. After several years and requests from clients Bo went out on his own to form his own marketing firm. Today, that marketing firm has evolved into a boutique firm serving only the needs of credit unions in the form of marketing, business development, and product development. Why credit unions? Thanks to his parents who are avid credit union supporters, Bo has been a member of credit unions from a young age.

Bo McDonald

Bo McDonald

Bo McDonald is president of Your Marketing Co. A marketing firm that started serving credit unions nearly a decade ago, offering a wide range of services including web design, branding, ... Web: yourmarketing.co Details