While bank deposits have been on the decline, credit unions actually saw a 5.4% increase in deposits at the halfway point of 2018 according to the National Credit Union Administration.
Has your credit union been part of the 5.4% uptick in deposits?
Experts agree there’s a good chance that the downturn in deposits at traditional banking institutions has led directly to higher deposits in the credit union market. This comes despite the notion the flourishing economy has caused consumers to move away from deposits as a means for growing their cash reserves.
Here are five ways your credit union can take advantage and build deposits heading into 2019.
1. Leverage data you already have…but might not be using.
Your credit union’s strategy for deposits should rely heavily on knowing where your target audience is. Start by examining your data on current deposit holders to create demographic profiles. This will paint a picture of the kinds of people who like your credit union and why they like it. For example, how sensitive are your members to interest rate fluctuations? Examining data from this perspective will help steer your marketing toward the kinds of deposit products your members gravitate to.
2. Increase digital and social marketing.
Not having a digital marketing mastermind or social media guru on staff is no reason not to market in these channels! This is especially true when you’re hoping to increase memberships and deposits. Utilize a marketing firm or third-party for their expertise in digital channels, like SEO. With a localized SEO strategy, you can hyper-focus campaigns to your newly identified audience (thanks, tip No. 1!) and even create digital re-targeting ads to recapture the interest of those who express interest at any point.
3. Focus on quality storytelling.
You’ll be competing for deposits against plenty of other institutions in your market, so differentiating your brand is crucial. Every bank and credit union has something that makes them unique, but few leverage it to set themselves apart. That differentiating factor could be your extensive list of product offerings, your ties to the geographic area or local community, or your mission. Once you’ve nailed down your unique differentiating characteristics, use compelling stories that align with your brand to hook new members and remind current members why they love your credit union. Using storytelling in advertising is one of the most tried and true methods in the business.
4. Employee advocacy
Board members and employees are personally invested in the credit union’s success and have the most knowledge of it. Turning their passion and investment into advocacy seems like it should come easy then, right? Unfortunately, many employees (and even board members in some cases) never get formal teaching on tactics like cross-selling products. Resources permitting, you can incentivize tellers and loan officers to help push deposit products.
5. Create hybrid deposit products
Tip No. 1 should give you an idea of which types of deposit products your members like. You can isolate certain product features and benefits that members like and bring a few of them together into one hybrid product. Similarly with federal interest rates on the rise, many people hesitate to lock themselves into a certain deposit rate and miss out on gains down the road. With the blessing of your compliance department, consider creating a new product that lets members bump their rate once or twice over the course of the deposit duration.
An important thing to remember in a strong economy coupled with rising interest rates is that consumers will be searching for new ways to increase their money reserves. Your credit union has exactly what they’re looking for—you just need to engage them wherever and whenever you can to get your piece of the pie.