Mastering the liquidity challenge: Strategies to attract more deposits

by Amanda Glincher, CNote, a CUNA Strategic Services alliance provider

In today’s ever-shifting economic landscape, credit unions continue to play a pivotal role in providing affordable financing options for individuals and businesses, remaining resilient in the pandemic’s wake. With the liquidity challenge now taking center stage, this is a great time to take a fresh look at ways to fill the coffers: Agility and an openness to new approaches will ensure that credit unions maintain their lending capacity and support their members in achieving financial success.

Digital transformation: A proven profit driver

In this age of digital advancements, adopting technology can play a significant role in credit unions’ success. A recent Fiserv study showed net profit for digitally engaged credit union members was 29% higher than for non-digitally engaged members. By implementing user-friendly digital platforms and online banking services, credit unions can attract tech-savvy younger generations. Moreover, mobile banking and remote deposit capture features can help retain existing members while encouraging more frequent deposits.

Targeted marketing campaigns: The golden ticket

Crafting marketing campaigns tailored to specific community demographics is the golden ticket to new and increased deposits. This approach involves customizing products and services to cater to different age groups, income levels and lifestyles. For instance, competitive student loan rates and refinancing options can entice younger members, while financial planning services and retirement accounts may resonate with older members.

Community relationships: An essential piece of the puzzle

Credit unions know that nurturing strong community relationships enhances their reputation and brings in new members. And because it’s long been so central, it can seem ho-hum as a strategy. But it’s not: By partnering with local businesses, nonprofits and schools to sponsor events, credit unions can build trust and showcase their commitment to the community. Financial education workshops are particularly valuable to potential members, while collaborations with other community leaders can increase visibility and expand networks.

Impact deposits: Unlocking a new stream of patient capital

Collaborating with partners like CNote, which specializes in providing impact deposits at scale, is a strategic power move for credit unions that opens up a new stream of patient capital. CNote’s platform connects credit unions with impact-minded investors keen on supporting positive, community-based outcomes, such as affordable housing, renewable energy projects and small business lending. Opening a channel for impact deposits not only increases deposits, but also reinforces a credit union’s reputation as a socially responsible financial institution.

Although today’s liquidity challenge poses unique obstacles, credit unions have the opportunity to innovate, evolve and ultimately triumph. By embracing digital transformation, developing targeted marketing campaigns, fostering community relationships and leveraging the power of impact deposits, credit unions can successfully navigate these challenges and continue to empower the communities they serve.

Amanda Glincher

Amanda Glincher

Amanda Glincher is head of marketing at CNote, an impact investing technology platform that provides a reliable, diversified, low-cost deposit base to CDFIs, MDIs, LIDs, and other institutions that advance ... Web: Details