Skip to main content

What percentage of your members consider you their primary financial institution (PFI)?

To determine your definition of PFI, think about what product usage matters most to your credit union’s success: products that generate income or technology that reduces expenses and engages ongoing activity.

  • Loans: Generate interest income and offer opportunities for non-interest income with GAP, warranty and other upsell options

  • Checking: Ties members to the CU on a day-to-day basis, as well as produces interchange income (and potentially other fee income)

  • E-services: Indicates high propensity toward PFI because the member has incorporated your CU into their daily life (direct deposit, mobile banking, bill payment). ‍

  • Deposits: Large deposit accounts (other than checking) can be “hot money” that will leave your credit union the moment rates go up. Deposit-only members do not consider you their PFI.

How to Get Started

To get started, determine a baseline of members who solidly consider you their PFI.

Here’s a formula: Find the number of members who meet the following criteria: Checking account + Mobile enrollment + 10 debit/ACH transactions per month + 1 or more loans. Then divide that total number by your membership to get your PFI %.

This number may be very low right now, but it’s a baseline. Track it over the next six-12 months. Is the percentage going up or down? A down trend could be a warning sign and should set off alarm bells. A growing trend upwards means your members are very satisfied with your offerings. No matter what your score is currently, the good news is that the members in this category are likely to stick with you. Value this group and leverage their loyalty and insights.

Get a Handle

In summary, before you make major decisions about rebranding or expanding to new markets, get a handle on your current loyalists. Figure out how to convert additional current members into that group and attract more from your market.

Samantha “Sam” Strickland knows credit unions. After leading marketing for 12 years at First Commerce CU, Sam started The Pod, a creative services firm with expertise in the credit union industry, in 2011. Sam’s Emmy- Award-winning team provides services like branding, website development, video production, and more for credit unions of all sizes.
CUToday

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

'Tis the season for fraud! Teller questions if member fraud is suspected.

  When a credit union employee suspects a member may be subject to fraud, they should initiate a careful conversation focusing on the nature of the transaction and external influences. The goal is to help the member identify red flags without the employee asking for sensitive personal information that the credit union should already have on file.  Initial Verification Questions    .pdf Before discussing the specifics of the suspicious activity, the employee should confirm the member's identity in accordance with established internal protocols.  Questions About the Transaction/Activity If the member confirms they are conducting a suspicious transaction (e.g., a large wire transfer or purchase of gift cards ), the employee should ask questions to help the member pause and think critically:  "What is the purpose of this transaction?" "Do you personally know the person or business you are sending money to?" "Have you ever met the...
Post a Comment
Read Complete Article HERE>»

Have a Safe and Happy Thanksgiving!

    Thanksgiving, is a day when we pause to give thanks for what we have! www. NCOFCU .org   Have a Safe a...
Post a Comment
Read Complete Article HERE>»

Loan Growth Part 3

MADISON, Wis.–Credit union loan balances rose 1.1% in February, faster than the 0.2% reported in February 2021, even as membership growth slowed significantly during the first two months of 2022, according to data released as part of CUNA Mutual’s April Trends Report. The Report, which is based on data through February, showed overall loan growth was 9.6% during the last 12 months. What is actually happening below the surface? According to the Trends Report, consistent with the trend line the analysis shows large credit unions reported significantly faster loan growth in 2021 as compared to smaller credit unions. Credit unions with assets greater than $1 billion reported loan growth of 8.4% compared to credit unions with assets less than $20 million, reporting loan growth of 0.9%. Here's a look at how credit unions performed by category, according to the newest Trends Report” ...
Post a Comment
Read Complete Article HERE>»

Fed cuts interest rates for the second time this year

The Federal Reserve on Wednesday lowered interest rates for the second time this year in a continued bid to prevent unemployment from surging. Fed officials voted for another quarter-point rate cut, lowering their benchmark lending rate to a range between 3.75% and 4%, the lowest in three years. It is the first time since the Fed’s rate-setting committee was established in the 1930s that officials have set monetary policy while lacking an entire month of crucial government employment data due to a government shutdown. ____________________________________ Check out NCOFCU's additional features: First Responder Credit Union Academy Podcasts YouTube Mini's Blog Job Board
Post a Comment
Read Complete Article HERE>»

Banking During and After COVID-19

Before COVID-19, the banking industry was experiencing an unprecedented period of growth and prosperity. Despite increasing consumer expectations and increased competition from non-traditional financial institutions, most banks and credit unions were stronger than at any period since the financial crisis of 2008. In a matter of only a few weeks, the world of banking has experienced a level of disruption that will change everything that had been the norm in financial services. There has not only been a major change in the way financial institutions conduct business but in the way, employees do their work and the way consumers manage their finances. Banks and credit unions must use this time of disruption to consider reinventing themselves from the inside out. It is a time when we need to better understand the way consumers expect their financial institution to support their financial needs. This includes the way banks and credit unions use data, AI, technology and human resources t...
Post a Comment
Read Complete Article HERE>»

Two Members of FOMC Indicate December Rate Cut Not a Sure Thing

  WASHINGTON–Two members of the Fed’s Open Market Committee have indicated they are in no hurry to further cut rates, despite market expectations. “I’m not decided going into the December meeting” and “my threshold for cutting is a little bit higher than it was at the last two meetings,” Federal Reserve Bank of Chicago President Austan Goolsbee said in a Yahoo Finance interview. “I am nervous about the inflation side of the ledger, where you’ve seen inflation above the target for four and a half years, and it’s trending the wrong way.” Goolsbee was interviewed after last week’s Federal Open Market Committee meeting that saw policymakers cut their interest rate target by a quarter percentage point, to between 3.75% and 4%, as officials sought to offset rising risks to the job market while still keeping interest rates in a position where they’ll help lower inflation pressures, noted Yahoo Finance. As the report also noted, Fed Chair Jerome Powell cautioned last week that “a further r...
Post a Comment
Read Complete Article HERE>»

Not Your Mother’s Credit Union

“Stablecoins aren’t a speculative play. They’re the next evolution of payments — and a chance for credit unions to lead, not lag. It starts with connecting members to DLT rails - the digital wallet. Without that, nothing else can happen. It’s just a new payment rail - embrace it or lose the relationship. It’s that simple.” While ‘ stablecoins ’ were the prevailing buzzword across Money20/20 this year, the credit union industry had a significant presence. Small financial institutions have staked a place in the future of payments. Credit unions  received a significant boost this summer with the enactment of the stablecoin bill into law. The Guiding and Establishing National Innovation for U.S. Stablecoins Act authorizes subsidiaries of federally insured credit unions, such as credit union service organizations, to become issuers. Not Your Mother’s Credit Union A Money20/20  fireside chat  with the regulator for credit unions that I moderated focused on the rulemaking task a...
Post a Comment
Read Complete Article HERE>»

CUs Encouraged to Promote Automatic Savings Plans

America Saves Week and Military Saves Week kick off this weekend. The week-long, national campaigns will begin Feb. 19 with events that aim to unite government, nonprofit and corporate groups to encourage individuals and families to save and build personal wealth. This year’s campaign theme – “Set Goals, Make a Plan, Save Automatically” – promotes the need for families to get aggressive with automatic savings.****READ MORE: CUs Encouraged to Promote Automatic Savings Plans :
Post a Comment
Read Complete Article HERE>»

Zelle Says It Will Allow Users to Make International Payments Using Stablecoins

SCOTTSDALE, Ariz .–   Zelle  has announced plans to allow users to start making international payments using stablecoins. The move by Early Warning Services, which operates the P2P payments network Zelle and which is owned by a consortium of large banks, comes in the wake of the passage of the GENIUS Act, which is designed to usher stablecoins into the regulated financial system. Stablecoins are a digital currency that is pegged to a fiat currency such as the U.S. dollar. As the CU Daily reported  here , credit unions were strongly urged during an event last week to not just start paying attention to stablecoins but to begin taking action as interchange income is threatened. Similarly, analysts said the move by Zelle to help users move money across borders is a defensive move in response to what is expected to be the growing use of stablecoins by consumers and businesses. Early Warning Services did not indicate how it would work or when it would launch, according to sever...
Post a Comment
Read Complete Article HERE>»