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CUNA Mutual Group’s lender development program marks 10-year anniversary

Early Adopters Have Reaped Benefits for Members and Credit Union Bottom Line

MADISON, WI (November 18, 2013) — Sixty-one credit unions have achieved remarkable results for their members and their bottom lines on the 10-year anniversary of CUNA Mutual Group’s Lender Development Program® (LDP). Since the program’s inception in 2003, the 61 charter credit unions have experienced an average payment protection participation lift of 20 percentage points.

“Before LDP, we’d just throw out a payment protection goal and try to figure out how to meet it,” recalled Chris Loseth, CEO of Potlatch No. 1 Federal Credit Union (P1FCU), in Lewiston, Idaho. “LDP brought focus to the credit union. It helped us build an understanding of how the protection products benefit our members and why they are good for the credit union.”

It’s difficult for Loseth to remember what it was like before his credit union joined LDP because P1FCU was the first credit union to serve as a pilot LDP credit union in 2003.

“At first, staff members were uncomfortable offering payment protection because they didn’t really understand it,” said Loseth. “Now, they have personal stories to share with members and know how to educate and answer member questions because they’ve witnessed how payment protection really does pay off.”

Early on, P1FCU’s goal for participation was 30 percent. Today, the credit union is consistently running between 42 to 45 percent, slightly above P1FCU’s peer group, Loseth remarked.

“LDP has helped us understand the role the protection products play in our member’s financial life,” said Loseth. “We don’t offer them to make money; we offer them because we know they help our members. We know claims are paid. The more we educate, offer and protect, the more we are doing to protect our members’ future financial well-being.”

Over the years, P1FCU has increased its non-interest income for insurance products by 344 percent, which directly correlates with more members having coverage, Loseth said. “Our level of non-interest income for CUNA Mutual Group debt protection and other related insurance products, at the 42 to 45 percentage rates, has resulted in an increase from approximately $238,000 to $1,055,000 annually,” said Loseth.

“At the end of the day, we’re all working together so our credit union members have that good, old peace of mind that everybody talks about,” said Loseth.

Collectively, the 61 credit unions that began utilizing LDP in 2003 have achieved incredible results, including:

  • Experiencing an average payment protection participation lift of 20 percentage points after joining the program;
  • Helping protect more members, resulting in more than $250 million in claims payments; and
  • Earning an average of seven times more revenue from CUNA Mutual Group’s payment protection products in 2012 compared with credit unions not on the program.

“LDP was developed on the best practices of high-performing, results-driven credit unions,” said Karim Habib, director of lending, CUNA Mutual Group. “As changing needs arise, the program’s multi-discipline approach continues to evolve to help enhance credit unions’ financial results through deeper member relationships that uncover and meet more member needs.”

Today, more than 900 credit unions use LDP techniques and resources to grow their financial results and enhance their member experience. As a group, these 900 LDP credit unions:

  • Earn five and a half times more revenue from CUNA Mutual Group’s payment protection products than credit unions not on the program;
  • Experience a 19.4 percent increase on their entire credit insurance book of business within the first three years of the program; and
  • Earn 40 more basis points in fee and other income than credit unions not on the program.

“We’re incredibly thankful for our LDP credit unions, and recognize their continued ownership of the program has paved the way for other credit union successes, too,” said Habib. “Their enthusiasm and participation in the program helps us evolve the program, and better educate other credit unions on how to make more profitable loans, and maximize every lending opportunity to meet more member needs.”

To learn more about LDP, visit www.cunamutual.com/LenderDevelopmentProgram.

CUNA Mutual Group insurance, retirement and investment products provide financial security and protection to credit unions and their members worldwide. With more than 75 years of true market commitment, CUNA Mutual Group’s vision is unwavering: To be a trusted business partner who delivers service excellence through customer-focused products and market-driven insight. More information on the company is available on the company’s website at www.cunamutual.com.

CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Life, accident, health and annuity insurance products are issued by CMFG Life Insurance Company. Property and casualty insurance products are issued by CUMIS Insurance Society, Inc. Each insurer is solely responsible for the financial obligations under the policies and contracts it issues. Corporate headquarters are located in Madison, Wis.

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