Are credit unions leaving opportunities on the table by not pursuing business deposit accounts? If I am asked the question, then the answer would be a resounding “yes”!
I recognize that not all credit unions offer business accounts for many different reasons. Maybe it hasn’t made it on the strategy plan yet? Or possibly the credit union doesn’t feel comfortable taking on a business deposit project without the knowledge and experience? Whatever the reason may be, opportunities are being left to those that make business deposit accounts a priority.
Having worked in both the banking and credit union industry, I believe credit unions have a unique opportunity when it comes to business accounts considering they live out the motto of “people of helping people”. Credit unions continue to find ways to contribute to the financial health of an individual, a business, and the overall communities they serve. So, how do credit unions go about unwrapping these opportunities and capture their local community's business deposits?
Let’s start with understanding what a business owner is looking for in a financial partner.
Connection
Business owners are looking for an authentic connection. Someone that genuinely cares about their business, not someone just looking to gain their deposits.
Credit unions can build connections by focusing on the business owners’ story:
- Tell me how you got started?
- What has been your biggest accomplishment?
- What sets your business apart from your competitors?
- What are the most important values or principles that guide your decisions?
Solutions
Many business owners struggle with wearing many hats and juggling multiple priorities which at times can impact their ability to find solutions to common problems. Here’s where credit unions can step in to offer solutions to save the day. By asking the following questions a credit union can help determine solutions to their everyday issues or even help to solve a future problem the business owner hasn’t yet anticipated:
- What kind of challenges will your business face in the next few years?
- How have you prepared for those challenges?
- What keeps you up at night in regard to your business?
- What concerns or struggles are you currently experiencing?
- What’s one thing that could make your life easier?
Alignment
Business owners can lose confidence in their financial partner when they feel as though the alignment is off. Consider how important tire alignment is on your car. How much smoother is your ride when your tires are aligned? The same concept applies for internal alignment at the credit union. As we think about the business owner, we can consider the four tires of your organization to be Lending, Branches, Treasury Services and overall Service Delivery. When all areas are in alignment a business owner benefits by being seen, heard, and valued consistently throughout your organization. The unified mission for businesses at your credit union becomes “when they succeed, we succeed”.
To ensure your credit union is aligned properly, ask yourself the following questions:
- Have we made businesses a priority throughout our organization?
- Have we communicated the service expectations and goals as it relates to our local businesses?
- When was the last time we asked our businesses how we are doing?
Community
Remember, business owners aren’t looking for just a place to put their deposits; they’re hoping to find a financial partner that is dedicated to helping them succeed. Someone who is determined to find the best solutions. Someone committed to delivering on the needs of the business and who is a community champion that connects people and resources.
Credit unions become local business community champions when they:
- Show up to support and celebrate a new business opening or existing business expansion.
- Shop or use the services of your local businesses, either for the credit union or personally.
- Recognize local businesses by creating a business resource page on your website or featuring businesses with strong ties to the community.
- Routinely checking in on business owners, even during a slow season.
- Connecting business owners with resources or vendors to help them reduce expenses or increase revenue.
Some business owners may struggle with answering a few of these questions if they’ve never taken the time to consider “thought provoking” questions such as these. The key here is to get them thinking and allow solutions to develop.
By unwrapping the opportunities of business deposits, you’ll find you're investing in something much more valuable—the economic heartbeat of your community! While there’s no doubt business deposits strengthen the credit union, the true value lies in what you give back:
- The gift of personal connections
- The gift of tailored solutions
- The gift of important alignment
- The gift of a community champion, and
- The ultimate gift of local decision-making
The best gifts a credit union can give a business owner don't come in a box, they are the relationships you build, the trust that is developed, and the solutions you provide. As an industry built on “people helping people” it’s time to expand the reach and find opportunities to deliver the gifts your businesses need!
If your credit union is looking to offer business accounts and is looking for experience, knowledge, and guidance, reach out to Innovative Business Solutions to learn more about Business Deposit Consulting Services. Or if your credit union is struggling with growing business deposits, Innovative Business Solutions provides in-depth training on how to prospect for business deposit accounts.
“Credit unions are also a gift to business owners—a financial partner who is invested in their success and makes decisions based on the needs of the business not on credit union profits”.
