by Rob Comfort, CUNA Mutual Group
For more than a decade, the need for retirement savings and the level of focus needed on an individual’s investment plans has changed dramatically. The world around us has pivoted away from providing traditional retirement programs and pensions – putting the onus on the individual. This has become even more important during this time of global pandemic and economic uncertainty.
We’ve known for some time that credit union members would prefer accessing financial services at a credit union – more than half of members state that. However, only 3% of members utilize their credit unions for investment services according to research from Kehrer Behlen. With many members struggling financially and facing uncertain futures, this is a time when future planning on retirement goals might be put off. However, now more than ever is when credit unions should be the trusted, go-to source to help members through this crisis.
Credit unions will benefit from increasing their focus on helping more members become educated and ensuring they have plans in place to help provide peace of mind that their future needs are being covered. This delivers on member needs and builds the credit union business overall. As research shows, members who enter into an engagement with a credit union do more business with them in the long term. In fact, credit unions see an increase in loyalty – with members 5.4 times more likely to stay with a credit union – and have more loan and deposit products per member when they have an investment account. Successful credit unions do this by ensuring that investment services are seen as equally important as their savings, lending and insurance businesses and defining a clear vision for their wealth management program.
Making investment services core requires more than a vision. It involves deep thought, a different strategy and incorporation of these best practices:
Having a disciplined plan in place and planning for success, while being able to adapt to the changing world we live in and adjust as needed, works. It starts by treating the program as core. When you adopt a thoughtful, disciplined approach to growth, it pays dividends in terms of helping members achieve their goals while helping you deliver on your mission.
CUNA Mutual Group (DakCU System Partner) is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Corporate headquarters are located in Madison, Wisconsin. We are a financially strong insurance and investment company. For generations, we have partnered with credit union leaders to protect and grow their businesses; and help people plan, protect and invest for their future. We offer commercial and personal insurance products; lending and payment security solutions; and retirement, investment, data and analytics, and marketing services. Please contact George McDonald, DakCU Chief Officer of Strategic Services for more information.
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