With 2018 now in the past, it’s time to hit the restart button and look forward to the year ahead. According to John M. Floyd & Associates, there are five things credit unions can do to ensure they are providing reliable advice and resources that account holders need to maintain their financial well-being – and in the process, increasing member loyalty.
Focus on building relationships
By utilizing the services and financial guidance that are part and parcel to an affiliation with a credit union, consumers to can connect to professional financial advice, along with more affordable, less risky services that will set account holders on a more stable financial path.
Make a good first impression
Engaging with consumers when they make initial contact with an institution is a first important step toward establishing a long-term connection. It is important to learn if the account holder is planning a major life event that requires financial assistance, of if they are looking for advice or services that will provide more peace of mind when it comes to managing their finances better.
Know your stuff
Employees should be able to accurately explain how all products and services address account holder needs, using terms they understand. Showing empathy to someone’s financial situation can go a long way in determining the quality of an account holder’s experience, and help an institution as a trusted resource.
Maintain transparent fees
Recent holiday spending estimates are evidence that consumers are willing to pay for things that are most important to them. However, when they find themselves up against a wall due to an occasional shortfall or account oversight, the high fees and short payment terms of a pay day loan or quick-cash solution can lead to a cycle of debt. On the other hand, a fully-disclosed, reasonably priced overdraft program provides account holders with a long-term solution that they can access, and help with the knowledge of their costs and responsibilities when they have a short-term financial need.
Offer more than transactional service
Effective account monitoring lets staff see when someone is experiencing financial difficulties. Offering more than transactional service, such as counseling and helping manage their account more effectively, and perhaps setting aside funds in a savings account for future emergencies, is a good way to build loyalty with the member.
About John M. Floyd & Associates
For the past 38 years JMFA has been considered one of the most trusted names in the industry helping community banks and credit unions improve their performance and profitability. Whether it’s recovering lost revenue, uncovering savings opportunities, serving your account holders better or delivering a 100% compliant overdraft program, JMFA has the right solutions to help you not only meet, but exceed, your goals. We are proud to be a preferred provider among many industry groups, including CUNA Strategic Services. To learn more please contact your local representative or call us at (800) 809-2307.