How Can Credit Union Executives Maximize Field of Membership Expansion?
Nearly a decade ago, sweeping modernizations to the National Credit Union Administration (NCUA) field of membership (FOM) rules fundamentally transformed how credit unions approached growth. Today, those foundational updates continue to provide financial cooperatives with powerful pathways to scale organically, reach new communities, and compete effectively in an evolving financial landscape. How can credit unions grow, besides using mergers? Looking at how you focus on your current members and looking for other opportunities is the strongest start.
For credit union executives evaluating growth initiatives, revisiting these structural expansion strategies offers a clear roadmap for maximizing membership potential and fulfilling your cooperative mission.
1. Key Avenues for Strategic Growth
Expanding your credit union’s reach relies on leveraging modern regulatory flexibilities. Several core areas continue to offer significant potential:
- Core Area Service Flexibility: Credit unions can focus service on a portion of a statistical core without the overwhelming obligation to serve a much larger area. Institutions can segment populations within core areas—staying under population caps—and apply to serve adjacent regions through streamlined narrative submissions.
- Expanded Rural District Definitions: With rural district population thresholds expanded up to 1 million residents, rural institutions have a significantly broader base for marketing products and services, alongside clearer multi-state expansion guidelines.
- Redefined Underserved Areas: Updated concentration ratios provide greater flexibility in defining underserved regions, unlocking new opportunities to market to populations previously restricted by legacy definitions.
- Relaxed Multiple Common Bond Rules: Credit unions can pursue employees of businesses operating under contract with sponsor groups, expanding potential membership pools by hundreds or thousands of individuals.
- Broadened Trade, Industry, and Profession (TIP) Charters: Institutions can market to employees of entities sharing a strong dependent relationship within a TIP charter, opening new avenues for strategic outreach.
2. Actionable Growth Strategies for Modern Credit Unions
Unlocking these opportunities requires more than just meeting regulatory criteria; it demands a proactive, data-driven strategy tailored to your institution’s charter.
- Review Current Membership Data: Analyze existing demographic trends, membership patterns, and marketing performance. Identify which tactics successfully attract specific groups and determine where messaging can be adapted for new subsets.
- Explore New Geographic and Demographic Targets: Evaluate newly accessible regions or community segments. Assess how these targets align with your charter and core service capabilities to avoid missed growth opportunities.
- Tailor Your Marketing Messages: Different audiences require distinct approaches. Craft targeted messaging that speaks directly to the unique needs of younger generations, blue-collar workers, or executives as you introduce them to your lending and savings products.
3. Maximizing Lending Potential and Economic Tailwinds
Expanded fields of membership allow credit unions to compete at the highest level with large financial institutions. New members provide fresh opportunities for lending across auto loans, credit cards, home mortgages, and more. When paired with updated member business lending rules and shifting economic environments, a well-executed expansion strategy allows your credit union to maximize its reach and fulfill its core purpose of serving community financial needs.
4. Ensuring Compliance Across Your Documentation
As your field of membership grows, operational alignment is critical. Expanding into new markets means your membership agreements, disclosures, and regulatory addendums must scale seamlessly across digital, online, and printed mediums. Utilizing outdated or non-compliant paperwork can introduce unnecessary regulatory friction.
Evaluating your forms provider ensures that your institution remains fully compliant with federal and state regulations, protecting your credit union from costly penalties while delivering a smooth, professional onboarding experience for every new member.
At Oak Tree Business Systems, Inc., we bring over 40 years of dedicated experience to the credit union industry. We provide the precise, compliant, and reliable forms and disclosures your credit union needs to support seamless growth. Contact Oak Tree today at (800) 537-9598 or visit oaktreebiz.com
to learn how our tailored document solutions can empower your expansion strategy.
We have visited this topic in the past, including an article in American Banker written by our CEO, Richard Gallagher, when the major rules changes were made. Since then we had many blog posts that we are going to put here, so the information is easier for you to find.
Ringing in Growth
New Year’s Resolutions for Credit Union Executives
Turning the calendar page offers a natural opportunity for reflection and strategic planning. For credit union executives, this means examining past performance, identifying areas for improvement, and setting ambitious goals for the future. As we enter a new year, let’s explore some key resolutions that can empower credit unions to thrive, attract new members, and deepen existing relationships. When ringing in the new year why not also start ringing in the growth of membership?
New Year’s resolutions aren’t just personal; they’re powerful tools for organizational growth. They provide a framework for focused effort and measurable progress. For credit unions, these resolutions should center around enhancing member experience, embracing technological advancements, and solidifying their unique value proposition.
1. Elevate the Digital Experience: In today’s digital-first world, a seamless and intuitive online experience is no longer a luxury—it’s a necessity. This year, resolve to:
- Invest in cutting-edge technology: Upgrade online banking platforms, mobile apps, and digital onboarding processes. Consider features like biometric authentication, personalized financial management tools, and AI-powered chatbots for instant support.
- Prioritize user experience (UX): Conduct thorough usability testing to ensure your digital platforms are easy to navigate and understand. A clunky or confusing interface can drive potential members away.
- Enhance cybersecurity: Given the increasing number of cyber threats, robust security measures are paramount. Invest in advanced security protocols and educate members about online safety best practices.
2. Deepen Member Engagement: Credit unions are built on the principle of member ownership and community focus. This year, resolve to:
- Personalize communication: Leverage data analytics to understand member needs and preferences. Tailor communication efforts to deliver relevant information and offers.
- Foster community involvement: Partner with local organizations, sponsor community events, and offer financial literacy workshops. This strengthens community ties and raises brand awareness.
- Solicit member feedback: Regularly gather feedback through surveys, focus groups, and online forums. Use this feedback to identify areas for improvement and demonstrate that member voices are valued.
3. Strengthen Financial Wellness Initiatives: Empowering members to achieve financial stability is a core credit union value. This year, resolve to:
- Expand financial education programs: Offer workshops, webinars, and online resources on topics like budgeting, saving, debt management, and investing.
- Provide personalized financial counseling: Offer one-on-one consultations with certified financial counselors to help members develop personalized financial plans.
- Partner with local businesses and organizations: Collaborate to offer financial wellness programs to employees and community members.
4. Champion the Credit Union Difference: In a competitive financial landscape, it’s crucial to highlight what sets credit unions apart. This year, resolve to:
- Emphasize member ownership and cooperative structure: Communicate the benefits of being a member-owner, including lower fees, better rates, and a focus on member service.
- Promote community reinvestment: Showcase how credit unions reinvest profits back into the community through loans, grants, and community development initiatives.
- Strengthen brand messaging: Develop a clear and compelling brand message that resonates with target audiences and effectively communicates the credit union’s values.
5. Embrace Data-Driven Decision Making: Data is a powerful tool for understanding member behavior and identifying growth opportunities. This year, resolve to:
- Invest in data analytics tools: Implement systems that can collect, analyze, and interpret member data.
- Use data to inform strategic decisions: Leverage data insights to develop targeted marketing campaigns, personalize product offerings, and improve operational efficiency.
- Monitor key performance indicators (KPIs): Track metrics like member growth, loan volume, and member satisfaction to measure progress and identify areas for improvement.
By embracing these resolutions, credit union executives can position their institutions for continued success in the year ahead. It’s a commitment to not just maintaining the status quo, but to actively pursuing growth, innovation, and unwavering dedication to serving their members and communities.
3 Ways to Grow Your Credit Union
in a Post-covid World
Credit unions and other businesses are still on the trajectory of crisis mode from two years ago. Most likely, your credit union was forced to respond to a series of variables just to stay in business, surrounded by members and employees panicked about branch closures, job loss, and not the least of which – fears of getting infected by a virus. Today, most everyone has relaxed a little, so we can stop thinking about survival and start planning for recovery. Now is the time to consider rebuilding and in some cases, rebranding. Here are three ways your credit union can encourage growth and maintain perseverance.
SWOT ANALYSIS
A SWOT analysis is something you don’t need a lot of outside help to accomplish, and if you haven’t completed one in the last two years, it is recommended that you revisit this practice with the current economic climate in mind. As you probably already know, S.W.O.T. stands for Strengths, Weaknesses, Opportunities, and Threats. The main purpose of a SWOT analysis is to generate an understanding of all areas of your credit union so that you can devise efficient strategies for project planning or a larger venture. This should be done before any major decision – and after any big changes to the financial and retail landscape (like a pandemic). When you evaluate each area of your credit union during this effort, you will be identifying your Strengths and Opportunities and using them to combat the Weaknesses and Threats that you encounter.
The SWOT technique was framed in 1965 by a Stanford Research Institute team, via a technical report describing a method of gathering information for assessing and strategizing operational problem-solving, although it wasn’t labeled as such. In the same year, another team from the Harvard Graduate School of Business Administration published a textbook on strategic management which contained the components of what we now know as SWOT. Since that time, the acronym has become a well-known matrix for making important strategic decisions.
The process for determining these four factors starts with a brainstorming session. What are your goals? How does each of these components affect your objectives? Could the strengths apply to multiple elements, or does strength become a weakness in another area? You will want to spend some time on each area, then summarize your findings, identify overlaps, and prepare for contingencies. This may pertain to financial resources, personnel, marketing outreach, physical limitations, or any aspect of your credit union’s operations, really. It’s best to organize these thoughts in a 2-column grid (SWOT templates are available for download by any number of sources) to compare your CU’s internal strengths and external opportunities vs. internal weaknesses and external threats. Rank and prioritize your ideas using your favorite organizational system (spreadsheet, color coding, vision board, PowerPoint or Google slides, etc.).
Strengths: This is recognized as an “internally controlled” factor. You will need to determine your competitive advantages, resources, and assets, what tools you are currently using or have available, what you will need to procure if you don’t have them, and how much time and effort you are willing to put in toward these areas.
Weaknesses: This factor is also “internally controlled.” Pinpoint areas that could be improved, like equipment or software that needs updating. You could look at how easily your members can find you online, or at your physical location. Is your customer service suffering as a result of staffing issues? Also, consider how you could be a stronger competitor in your field.
Opportunities: This factor is “externally controlled,” but that doesn’t mean you can’t influence its impact on your credit union. This could mean taking advantage of trends, adjusting to regulatory or zoning changes, participating in events that may be happening in the industry, and focusing on better marketing tactics for brand relatability.
Threats: To conquer these “externally controlled” factors you must either plan around them or be prepared to receive the impact. It is important to have a contingency plan for each threat you identify. Threats could include supply chain problems, expensive technology, a shortage of materials, negative media coverage, economic downturn, certain market trends, (a pandemic!), or new competition.
As mentioned above, begin by identifying your strengths and see how many can interact with the opportunities around you, and how many can overcome the external threats. From this effort, you will be able to create an action plan. Once your goals are set, then you can start to strategize.
CONDUCT MARKET RESEARCH
Knowing how you are perceived by the outside world is essential to growth. One research tool to accomplish this goal would be to conduct a market survey for your branch(es). This could be expanded to include an employee survey as well as one you would give to members, and compare the results to see if there are any correlations. For instance, if your credit union was particularly affected by the pandemic and the member survey shows that people are unhappy with reduced hours, less-than-stellar greetings, and limited access to services; an employee survey may illuminate the reasons why.
- If staffing has been reduced, employees may feel overworked. If hours are limited, perhaps new part-time staffers haven’t had time to fully access training tools. These factors could contribute to lackluster customer-service experiences.
- Perhaps the branch is undergoing a new technology surge due to more frequent remote activity, and that is putting a strain on the system. This could account for frustrating lags or interruptions while using an online banking tool.
- If a change in lobby hours (temporary or otherwise) isn’t communicated well in signage or on the CU website, members may be caught unaware when visiting a branch, and complain about disorganization. If employees bear the responsibility of informing the public of these changes, they will also receive the backlash, which can contribute to low morale.
These are occurrences that can only be observed by someone who is actually on-premises and facing them on a daily basis. Member and employee surveys can show both sides of the situation, so appropriate steps can be taken to repair and prevent negative experiences.
On the other hand, employee and member surveys can also show you what is working, and what sets your credit union apart from your competition. This is handy knowledge for due diligence, and for continuing to provide the great service they have come to expect and enjoy.
MAKE SHORT- AND LONG-TERM PLANS
Two years after the start of a global pandemic, it is safe to assume we are operating a little differently than we were a few years ago. Yet, as we agree that some of the changes will remain, we also anticipate veering back to something a little closer to what we had before. It’s important now to make a short-term plan to continue navigating the current landscape, and a second, long-term plan for what we can expect to happen in years to come. When you start to strategize, keep in mind the issues that are ongoing. Which ones will pass? Which ones will stay?
Short-Term
Post-Covid-19 changes include remote services, work-from-home concessions, contactless transactions, enhanced home delivery options, fewer cars on the road, higher-level technology to accommodate heavier use of digital systems, vaccine and mask mandates, ever-changing laws concerning outdoor dining and recreation, and a higher staff turnover.
Long-Term
Enduring changes may include Overall pay increases and less-strict workplace rules to facilitate better employee retention, lengthier or permanent work-from-home and hybrid workplace requirements, upgrading technology to accommodate WFH or hybrid workers, and permanent contactless transaction options.
Bear in mind how you have been affected by each of these changes and how you have handled them thus far. How successful was your solution to these problems? Are your members and staff still struggling with some of the changes, or have they acclimated well? A sturdy operational structure can help build and maintain a sustainable future for your credit union. Employees will feel more secure in a stable and predictable environment, and members will appreciate a happier staff.
Chances are, you’ve already adjusted to a slightly different environment at your credit union. Over the last two years, so many changes have already been implemented, discarded, re-implemented, accepted, loathed, and celebrated. Now is the time to look ahead to what your financial institution will look like on a daily basis. You could regard it as an opportunity to shape the future! At any rate, we can be grateful for a resilient credit union community.
3 Keys to More Credit Union Members
How Enticing & Simple is Your Credit Union Membership Application Process?
Every now and then it’s important to take a look at your membership process to make sure it is easily accessible. While you might think you have all bases covered, and you most likely do, it’s always a good idea to take a few minutes and review the process. You want to make sure your credit union membership process is easy and enticing. Address the following areas to ensure a smooth, easy road to membership. Here are 3 keys to more credit union members for your institution!
Awareness.
Have you covered all the bases regarding membership awareness? Is all of your branding in place, easily identifiable, consistent, front and center? Take a moment and look around your credit union. Make sure the first impression a potential member has is that you want him to join your credit union. If you notice an area lacking, make adjustments until it is obvious to anyone who walks through the door that you want him on your team. Also, do the same evaluation of your website. Remember, people like invitations. Your web presence should give them one.
Promotions.
Potential members looking to finance an automobile loan, or obtain a first or second mortgage, will likely turn to a credit union for the low rates and attractive terms. Make sure you have any promotions regarding those services, and any other services you have to offer, in plain view. Look to make sure they have a high degree of physical visibility in your credit union, and online. Promotions can be used as a great hook to get new members. It is important that potential members are aware of anything special you have to offer like introductory rates, online banking, and automatic bill pay. This could be the very thing to entice them to leave their current banks and become members. Oak Tree also offers Marketing Services to help your credit union grow.
Forms.
The easier a credit union application process is, the better. This is why Oak Tree’s fillable forms are a good alternative option. It cuts down on the time it takes for new members to fill out the form, and gives you more time to get to know them as individuals. It makes the process a lot less formal and works to establish a rapport from the beginning. Plus, all of our forms are compliant with regard to disclosure requirements and all other state & federal guidelines. All that is required is simple and accurate data input.
Consider these three areas to be a great starting point. There are other ways to make your membership application process enticing and simple. Just get creative. Work through the process as a new member and make note of any areas you might be able to streamline or make more appealing. Of course, if you need credit union membership forms we are just a phone call away. We are happy to serve and would do anything we can do to make sure our forms contribute to making your membership process as simple and attractive as possible.
Remember, for all of your members we can help them with better credit union lending documents as well!
New Credit Union Member Acquisitions
Have you ever wondered why it takes so long to gain new members for your credit union? Well, let’s spend a few moments and take a closer look. As it turns out, there are several misconceptions surrounding the industry. The more you can understand the hesitancy of a potential member you can better suit your messaging to help convince them it is time to join your credit union. These credit union myths make it hard to get new credit union member acquisitions.
3 Common Credit Union Myths That Hinder Membership
Eligibility
A common misconception is that most people think credit unions are exclusive clubs. They feel that since credit unions exist to serve a specific group (such as college alumni or a particular industry), they don’t qualify. That used to be the case. But, since rules and regulations have been relaxed, membership eligibility is much broader than it used to be. Conveying that to a potential member could make all the difference.
Accessibility
Many people think that just because they don’t see a credit union on every corner, access is much more limited. However, most credit unions share a banking network. This network opens up access to ATMs and other independent branches, depending on how the network is structured. Communicating the shared network concept to potential members will open up their understanding a bit. Let them know that while they may not see as many physical locations, they will certainly have access to their money.
Switching is Difficult
Many banks have automatic bill pay services, which puts forth the idea that switching to a credit union would be more cumbersome than it actually is. It usually takes one bad customer service experience to encourage people to look elsewhere. When they are in those frames of mind and start looking at your credit union, make sure they understand how easy it is to switch. Most credit unions have free “switch kits” to make the process a lot smoother.
Don’t Lose Members!
That last point is double-edged, for sure. The points mentioned previously shed understanding on why it can be so difficult to gain new members. That last point cuts both ways, though. Customer service is everything. This is what sets the credit union industry apart. Rather than approaching potential members from the perspective of an informal financial institution, credit unions present an emphasis on customer service. When members feel like their needs are met, and they are really valued, they are less likely to look for other places to serve their financial needs.
Of course, our Credit Union Membership Documents package is perfect to help credit unions grow membership rosters and cement them as a part of your credit union family. If you’re not using the package currently, we invite you to give us a try. Our staff is on standby and would love to speak with you. It would be our pleasure to help you streamline the credit union membership process, and make your credit union a more attractive option to potential members. Get a quote at ClientServices@OakTreebiz.com.
