This week, CreditUnions.com takes stock of the credit union industry, profiles one credit unions new branch concept, and asks: what does a strategic analytics and member insights manager do?
Here are five cant-miss data points:
Citadel Federal Credit Union brought in expert advice when it sought ways to improve the member experience. It asked branch staff to name one thing they would change about the branch to make a better member experience. Those conversations in 2014 kick-started an effort to introduce a new branch concept. Across the following 12 months, a Citadel project manager and a third-party architect consolidated notes from employee conversations, considered technology needs, and conducted vendor due diligence before rolling out a new concept in 2015 that the credit union hoped would encourage member interaction and deepen relationships.
Read: 3 Years. 8 Branches. 1 New Concept
Mike Lindberg knows what data analytics is really about at today’s credit union: building strategies based on member insights. That’s why when Wings Financial Credit Union created its strategic analytics and member insights team in 2016, it put Lindberg in charge. Today, his job includes not only helping the organization better understand its stores of member data but also helping the business units leverage that intelligence to innovate and improve products and services. In his own estimation, Lindberg spends 40% of his time working on business collaboration.
Read: Whats In A Name: Strategic Analytics & Member Insights Manager
Credit union membership reached 114.1 million in the first quarter of 2018. That’s nearly 4.7 million more members than this time last year. At 4.7%, first quarter member growth this year was the highest since 2003. Learn more about credit union members.
Read: Members By The Numbers
The number of credit unions declined from 5,859 to 5,646 in the first quarter of 2018. As of March 31, there were 3,477 federally chartered credit unions and 2,169 state-chartered ones. The year-over-year decline of 213 credit unions is consistent with long-running consolidation trends. For example, the number of credit unions declined by 221 between the first quarters of 2016 and 2017. Despite a drop in numbers, total assets increased $78.2 billion annually, or 5.8%, to end the first quarter at $1.4 trillion. What else happened in the first quarter?
Read: Credit Union Industry At-A-Glance
Credit unions have a problem. So do many members. The problem is deposits, and it can be solved by applying a little behavioral economics (BE). Credit unions need to buttress their lending and address a liquidity crunch that has resulted in the industry loan-to-share ratio jumping from 66.08% in the first quarter of 2013 to 80.65% as of March 31, 2018. In fact, many individual institutions have surpassed 100%. Many members, meanwhile, need to increase their savings along with taking out all those loans. That’s for their own sake, and that’s where the cooperative financial movement can engage in some behavioral economics.
Read: Deposit Hungry? Put A Little BE On It.