Digitize your credit union’s core deposit acquisition strategy
While the growth and stability of a credit union is dependent upon many factors, perhaps one of the most pressing concerns currently is the quest to obtain core deposits. As 2019 wrapped up, the credit union industry showed modest growth in membership numbers and loan portfolios but struggled to maintain regular share account balances. CUNA reported regular share accounts decreased by 3.15% in Q3 2019.
Core deposit accounts, generally understood to consist of regular share, draft share and club accounts, directly impact credit unions’ ability to continue making loans and ensuring an appropriate net worth ratio. A higher proportion of core deposits means lower liquidity risk, leaving credit unions less sensitive to market fluctuations. To ensure stability and reduce risk, credit unions must adopt a proactive strategic plan that emphasizes the use of data-driven marketing and technology to drive core deposits within each field of membership.
Data are tools to define and shape strategy, by creating profiles of current members, credit unions can identify the demographics, characteristics and banking habits of their members. Data can be used to define who members are, why they come to the credit union, what services they use, and how much they deposit, withdraw, invest or request in a loan. By creating data driven member profiles or personas, credit union can create highly customized marketing collateral and campaigns targeting key segments of their current and prospective membership.
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