Having a strategy is critical to the success of any credit union. It allows them to set long-term goals and make short-term decisions about what to do. The concept of a business strategy is not simply about making plans; more accurately, a strategy is about making good choices. A credit union can use strategy to decide which opportunities to act on and which ones to ignore. This article will discuss key areas of business that all credit unions should take advantage of.
Credit unions should take advantage of certain technologies to remain competitive and relevant. A large number of credit unions are now leveraging technologies such as mobile banking, easy-to-use websites, and remote depositing. You should not feel pressured to create new software or apps, though; the key is to take advantage of existing, proven technologies that can benefit your business. This can demonstrate to your members that your credit union is taking leaps forward and can compete with banks.
Plan for Growth
As with any business, it is very important for credit unions to plan for growth. This is because the ultimate goal for any credit union is to expand its customer base. A credit union that is not prepared for growth can lose plenty of potential members, leading to a loss in revenue. Credit unions continue to face fierce competition from banks and other financial institutions that do an excellent job at managing growth. For this reason, credit unions have to make planning for growth a top priority. This always includes a continued focus on great loan rates and outstanding customer service.
In today's market, reviews are crucial to the growth of any business, including credit unions. Managing reviews could be vital to the health of your business as well. You will need to manage your Facebook business reviews as well as reviews on your other business social media accounts. People trust the opinion of other people and the vast majority of them will make a decision on a product or service based on reviews they read, whether they are positive or negative. This means that bad reviews can be detrimental to your credit union and should be confronted immediately to minimize any negative impact. It may even be possible to turn a negative review into a positive one.
A major misconception about credit unions is that they do not offer products and services that are competitive with big banks. This perception could be driving plenty of potential customers away and is a problem that credit unions must confront aggressively. Credit cards are sought after by a large number of consumers, and yet approximately 60% of credit unions offer credit cards. In contrast, nearly every bank offers a credit card. Credit cards are a product that all credit unions need to find ways to offer.
Wealth Management Services
It is no secret that millennials are the largest consumer group. They are also the fastest-growing consumer group and are expected to inherit tremendous amounts of wealth, to the tune of more than $30 trillion. Millennials will be seeking out financial institutions to help them manage and invest these assets. It is very important for credit unions to be properly positioned to take advantage of this opportunity.
In closing, it is of crucial importance for credit unions to take advantage of the areas of business above to remain relevant and to expand. Planning for growth well in advance, making use of new but proven technologies, managing positive and negative reviews, offering competitive products, and having wealth management services can all help you stay ahead of the game as well.