United Federal Credit Union builds better member experience through deposit product innovation
HOLLAND, MI (April 9, 2019) — In 2018, United Federal Credit Union (United) grew deposits by 10.4%, doubling the credit union industry average of 5.3% growth.
United attributes part of its deposit growth success to an intentional shift in its deposit strategy to build better member experiences through the innovation of its relational products—like checking accounts.
In 2017, United simplified and relaunched its checking suite to include two account types: a high-yield option called Ultra Checking with a 3% APY on balances up to $15,000, and an option called Rewards Checking which gives members the ability to earn 1 point on every $3 spent for qualified purchases.
“We simplified the checking account offerings so members could choose what they want based on how they use their account,” said United’s Chief Innovation and Marketing Officer, Erin Hennessy. “Not only did simplifying the checking suiteprovide better solutions and options for a higher percentage of our membership, it also allowed us to use checking as the focus of future deposit product innovation.”
New deposit products were added to the product lineup in 2018 as part of the larger strategy, designed to benefit United members and acquire new, sticky deposits. The Liquid Share Certificate account, relaunched in July 2018, allows members to make up to two withdrawals per month during the 12-month term of the certificate. The Bonus Builder Money Market account, launched in September 2018, allows members to add 0.50% APY to their money market rate if they have a United checking account.
In addition to the new products, members with an Ultra Checking account were offered a 0.10% APY rate bonus on monthly share certificate specials.
“This strategy creates a more holistic relationship with our members and deepens their relationship with United, versus relying on one product—like share certificates,” said Hennessy. “We still are priced competitively, but with a variety of products that work together, we can create a plan for a member no matter what their needs are, or what their liquidity preference might be. It’s all about being proactive to meet members’ needs versus being reactive to industry trends.”
Members are responding to the strategy positively. According to a third party survey distributed to members of United and 233other credit unions, United ranked in the 95th percentile in its peer group for controlling its members’ deposit balances. That is a 16.2% increase for United when compared to the 2017 member survey.
According to the same 2018 fourth quarter member survey, 78% of United members said they held their primary checking account at the credit union, earning it a high performer designation.
The data backs up the results from the member survey. Throughout 2018, total open checking accounts grew at a consistent pace, netting an average of 490 new accounts per month while total checking balances increased by 4.8% in 2018.
Also, since offering the rate bonus, United’s Bonus Builder Money Market product averaged $6.3 million per month in new money deposits from September to December and averaged 132 new account openings per month over the same time period.
“United believes strongly that our success as a credit union is rooted in building lasting relationships with members,” said Hennessy. “Future product innovation will key on insights learned from a variety of data points, so that we know our members better than anyone as we continue to meet them when and how they need us.”
About United Federal Credit Union
United Federal Credit Union has served its Members since 1949 by helping them to build a sound financial future. United consists of more than 194,000 Member/owners worldwide and manages assets in excess of $4 billion. Its corporate office and main branch are in St. Joseph, Mich., with additional branches in Arkansas, Indiana, Michigan, Nevada, North Carolina, Ohio, and Pennsylvania. Federally insured by NCUA. Equal opportunity lender. Equal housing lender. For more information visit UnitedFCU.com