Driving Growth in the Year of the Rabbit

01/07/2023 CUToday

By John Vardallas

According to the Chinese Calendar 2023 is the Zodiac Year of the Rabbit. The Rabbit personality is focused on peace, prosperity, longevity and access. People born in this year are calm, decisive, rarely panic and cautioned to think twice before acting to be successful in their plans.

In terms of wealth, Rabbits will be careful about watching their money and entering monetary relationships with others. So do not expect a big windfall achievement in the year of the Rabbit. Bracing for trouble and being cautious and reasonable about money will help one go through the year smoothly. 

Like the rabbit, credit union leaders must monitor the changing economic conditions and impact on consumers’ (our members’) lives and invest in analytics that look for opportunities to meet new needs. 

And like Rabbits we must be wary and keep an Eye on the Two I’s-—inflation and interest rates.

2023 will be the real year of test regarding the contracting economy and the recessionary carry over from 2022. It will give our credit unions a chance to put into practice our re-imagining strategies for the future during a challenging economy.

More than ever, 2023 will be the time for our CU leadership to be bold, think more like futurists and implement recent post-COVID lessons learned that have impacted our operations and serving members.

Dangle Some Carrots

And, like getting a rabbit’s attention, your credit union should dangle some “incentive carrots” to get members to use more of your services: rewards programs, rate specials, free education seminar/webinars, credit reports and easy mobile payments.

Credit unions should value even more the contributions employees bring to the workplace, especially during the Great Resignation, and support them in embracing our business transformation while generating value from exceeding member expectations and experiences.

More than ever during an uncertain economy, credit unions must continue to tell our story more, be heroes to our members and keep demonstrating our mission/purpose and community inclusiveness. Focus on continuing to be a trusted advisor/first financial responder and life-line to our members financial needs.

Suggested Strategies

Some suggested recession-buster growth strategies to consider for 2023 include:

• Offer incentives/rewards (low-rate cards) to members for doing more business with your credit union
• Increase CU’s products/services
• Give members a strong member experience (MX)
• Provide more electronic ad remoted lending/online ordering transactions capabilities, and do its 24/7/365
• Offer retirement planning (Wills) serviced
• Increase non-interest income (credit life/disability insurance products)
• Promote home equity loans (home offices/family caves/backyard landscaping)
• Help more members needing financial assistance and counseling
• Provide loans for boats/personal watercraft, RV, camper, ATVs
• Be ready to respond to pent-up desire for new/used cars
• Provide member business loans (including to cannabis businesses and suppliers)
• Offer green loans for solar panels (for commercial and home use), as well as hybrid and EV autos
• Offer first (second vacation) and travel loans
• Pursue the those unhappy customer refugees (Wells Fargo) and demonstrate how credit union membership is a better financial value 

One Final Thing

Finally, the overall economy is likely to be weaker in the coming year. However, due to strong net worth, earnings and assets, credit unions will have the capacity to lend and grow. Credit unions have always survived challenging times and members will be looking for guidance, help and their assets preserved. 

2023 will be no time to go down rabbit holes. Credit union leaders will need to work smarter, be brave and pounce upon this opportunity for the credit union difference to shine. 

It may mean the difference between just surviving and thriving. 

That’s all, folks.

John A. Vardalas is founder/CEO of The American BoomeR Group, a Madison, Wis. based speaking/business consulting firm for credit unoins. He can be reached at jvardallas@aol.com/www.theamericanboomer.com