How valuable are member rebates?

Credit unions might be better off investing this money in other ways.

Now is the time of year that member givebacks, dividends, and rebates are all the rage.

As a result, some credit unions are giving back millions of dollars to their members.

While this may sound wonderful, is it truly an investment that is beneficial? Is it possible that offering up a short-term benefit at the expense of long-term membership growth, value, and service experience isn’t worth it after all?

The short answer: Unless your credit union has maximized its value and experience for members, this giveback is nothing more than a misguided attempt to buy loyalty.

Here’s what you should ask before considering a member giveback:

  1. Does our core system deliver on our internal needs and the ability to provide value to members?
  2. Is our credit union easy to work with? Do we force our members to work with a five-year-old online banking system? Is our banking app something out of 2010?


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