Interview with Corporate America Family CU: SEG Development Success

Learn how one credit union achieved a record year in sponsor company growth.

With credit union membership at an average 1.6 percent, credit unions are searching for successful strategies to reach new members. Corporate America Family Credit Union ($618M, IL) experienced success with a strategic focus on SEG development. Its efforts resulted in a record year for sponsor growth.

Recently we had the privilege of talking with Lisa Carr, V.P. of Sales & Marketing. Below she shares her insights and advice regarding the credit union’s success.

Why do you choose to focus on SEG development when you have a community charter and other avenues for growth?
The relationship we see with our sponsor companies is invaluable. It provides us with the opportunity of face-to-faceinteraction with potential members. We can reach them at a much lower cost than if we went out into the community. It also makes sense given our structure of 30 branches in 12 states. We are not in one single community, but spread across the nation.

Why should a sponsor company choose CAFCU?
We offer products and services for every individual, regardless of credit score or financial history. Education is the other key benefit. It is integrated into every program, productand service available at the credit union.

How do you reach out to SEGs?
We reach them in four main ways:

  • Products & Services. We offer products for everyone, including a payday lending alternative and Fresh Start Checking, a product designed for members who do not qualify for traditional checking accounts.
  • Marketing. We reach out primarily through direct marketing and Sponsor education and events.
  • Business Development Structure. The team is comprised of 18 officers trained to become true financial experts, four managers, and one director. We just added a new layer of management that is dedicated to the continuous developmentof staff and consistent service to our national companies. Ninety percent of our officers’ time is focused on serving and acquiring sponsor companies.
  • Outbound Call Center. Our branches and business development team is supported by our outbound call center. When new members join, the center focuses on building the relationship. They welcome members to the credit union, ensure theyreceived their materials, ask about their financial goals and educate them on how to access their accounts.

What are the key success factors?
There are three: a complete array of products and services, education integrated throughout our product offerings and our business development team.

What are your results?
We experienced a record year in sponsor growth with 195 new sponsor companies for a total potential of about 75,000 members. Our participation rate among our 500 active sponsor companies is 35 percent.

Our latest effort, the required educational courses for ineligible members, was launched in late September. In just two months, there have been over 200 participants. It’s too early to report, but my hunch is that these participants are mainly membersfrom sponsor companies. The high level of attendance tells us that we are providing a service for members who want to improve their financial lives.

Any advice?
Turn to other credit unions that have done similar things. They are a great resource. If you are considering a business development program, draw a line in the sand and launch it. It may or may not be perfect. Just putit out there, evaluate it, and make tweaks. But don’t make changes too quickly. Give the program a chance.

April 28, 2016

Keep Reading

View all posts in:
More on:
Scroll to Top
Verified by MonsterInsights