Why would credit unions want to make “People Helping People” a strategic objective?
Elevating this industry mantra to a formal objective emphasizes a strategic focus on the “What, When, How, and Why” to ensure credit unions deliver a holistic approach to service.
Starting with the “What,” it is a known truth that what gets written down usually gets done. Regarding the “When” and “How,” success involves developing a plan of action with specific dates to implement strategies and programs designed to assist members and the community. These initiatives help boost credit scores, lower monthly loan payments from other financial institutions, and potentially pay off high-interest credit card balances.
This strategic approach is vital to attract more Gen Z and Millennials, who are the biggest revenue sources for the future. These generations are highly focused on establishing good credit scores as they make first-time purchases for autos and homes. One way to reach them is by offering financial education, such as hosting a Credit Score Management Seminar as an outreach program for local businesses and their employees.
The “Why” behind this strategy is clear: the credit union will experience increased growth with high-quality loans, higher revenue through risk-based pricing, and improved payment likelihood via innovative risk mitigation. Furthermore, it drives stronger member loyalty and higher employee engagement.
Ultimately, this strategy creates a Win/Win/Win outcome. It’s a win for the credit union through more high-performing loans, increased revenue, and greater retention; it’s a win for members who receive lower interest rates, reduced payments, and the financial education needed to regain control over their finances; and it’s a win for employees, who benefit from the intangible reward of impacting lives while being recognized for boosting loan opportunities and attracting new members.
By making this a strategic objective, you give your credit union a competitive advantage and a real distinction from other financial institutions. When you help an individual improve a credit score from 482 to 702 in four months, or save a member $32,000 in interest by restructuring high-interest credit card debt, you add significant value. These real-life member experiences are meaningful and impactful to people who need financial guidance to achieve long-term freedom. This mission also boosts employee engagement, as staff feel empowered when they believe they are making a genuine difference. All in all, increased engagement through meaningful, consultative conversations leads to deeper member relationships, PFI status, and lasting loyalty.
cuStrategies‘ proven strategies and programs can help you develop a strategic action plan that ensures you achieve greater success in truly living the mantra of “People Helping People.”
Contact us today!
