How does your credit union define success when it comes to growth? For some credit unions it might be asset growth, growth in loans, or growth in membership. If one of your credit union’s key strategic objectives is growing membership, having the business intelligence to understand where new members are coming from becomes important. This blog will focus on strategic questions to consider regarding the impact of new member growth through indirect channels.
For many credit unions, a large percentage of membership growth in recent years has been driven by indirect members. The credit union demographic data noted below shows that between ages 30-70, the years when members do most of their borrowing, more than 50% of the total growth in members in 2016 came through the indirect channel (see the highlighted line in the second table). This information is noteworthy because this credit union has a strategic objective of deepening relationships with members as measured by products per member, and growth in indirect members may be at odds with that objective.continue reading »