Deposit hungry? Put a little BE on it.
Three behavioral economics concepts can boost savings during a liquidity crunch.
Credit unions have a problem. So do many members.
The problem is deposits, and it can be solved by applying a little behavioral economics (BE).
Credit unions need to buttress their lending and address a liquidity crunch that has resulted in the industry loan-to-share ratio jumping from 66.08% in the first quarter of 2013 to 80.65% as of March 31, 2018. In fact, many individual institutions have surpassed 100%.
Many members, meanwhile, need to increase their savings along with taking out all those loans. That’s for their own sake, and that’s where the cooperative financial movement can engage in some behavioral economics.
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