How your credit union can win the battle for deposits

For the first time in years, the economic environment is forcing credit unions to aggressively compete to attract deposits. Add to this economic backdrop the recent bank failures triggering a “flight to quality,” and you have an all-out battle for deposits underway.

Let’s consider what credit unions can do to both retain and attract deposits in this hyper-competitive environment.

The old tactics for attracting deposits don’t drive impact

While not a completely unfamiliar situation for the industry, current times do call for very different tactics to be successful. The traditional tactics of promotional rates and bonuses don’t deliver sustainable gains. They can deliver a bump in new member acquisition, but don’t attract the kinds of relationships that credit unions desire. Also, members expect more from their credit union than simply incentives to open new accounts.

 

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