Skip to main content

Driving Growth in the Year of the Rabbit

01/07/2023 CUToday

By John Vardallas

Screen Shot 2023-01-06 at 1.09.15 PM

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

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Unlocking the Power of Emeritus Board Positions in Credit Unions

  Explore how the Emeritus Board Position in credit unions honors long-serving members, offering them a chance to mentor new leaders while maintaining strategic influence without the responsibilities of active board roles.
Post a Comment
Read Complete Article HERE>»

Both Sides of The Desk!

With over 50 years of experience in the credit union sector, I have had the privilege of observing and participating in its evolution from various vantage points. My journey has taken me from serving as a dedicated volunteer holding critical leadership roles, including serving on the supervisory committee, as director, and as board chairman, culminating in my tenure as CEO for 12 years and now founder and President/CEO of the National Council of Firefighter Credit Unions . This extensive background has enabled me to " Sit On Both Sides Of The Desk ," blending operational expertise with strategic oversight. In this blog post, I want to share how this dual perspective has enriched my understanding of credit union dynamics and fostered more effective governance. By leveraging the insights gained from years spent navigating both the intricacies of daily operations and the broader strategic objectives, I have witnessed firsthand the transformative power of collaboration, communi...
Post a Comment
Read Complete Article HERE>»

How To Make Decisions With Conviction—Even Under Pressure

Why strong leaders act when others hesitate — and how to develop that confidence without needing every answer. I’ve watched smart, experienced leaders freeze. And I’ve been in that same position myself. It’s not because we lack information, but because we don’t feel ready to choose. Leaders often get stuck because they’re waiting for the perfect moment to act. They’re thinking through the consequences, weighing the trade-offs, trying to get it right. But the longer they wait, the harder it becomes to move at all. The truth is that the worst decision isn’t always the wrong one. It’s the one you never make. If you’re in a leadership role, you don’t always get the luxury of knowing. You have to move anyway. Not recklessly, not blindly, but with clarity, purpose and conviction. In high-pressure moments, the gap between average leaders and great ones gets exposed. It’s not a gap in intelligence or experience. It’s a gap in decisiveness. Because conviction doesn’t mean certainty—it means mak...
Post a Comment
Read Complete Article HERE>»

Live - Podcast Understanding The Importance P&L Statements

A Weekly Dose of Innovation for Credit Unions Serving First Responders Welcome to the NCOFCU Podcast: Your Weekly Dose of Innovation. Hosted by Grant Sheehan CCUE | CCUP | CEO, NCOFCU, this podcast is your definitive source for the latest news, insights, and trends in the first responder credit union world.
Post a Comment
Read Complete Article HERE>»

Fed Kicks Off Two-Days of Meetings Today as Critics, Proponents Respond to Rate Increases; Plus, What CUs Should Expect

CUToday WASHINGTON–The Federal Reserve’s Open Market Committee (FOMC) will kick off two days of meetings today and the decision they announce tomorrow will affect everything from the major U.S. markets to credit unions that are seeing strong loan growth to individual credit union members struggling with monthly bills. The FOMC is widely expected to again raise its benchmark rate as it seeks to cool raging inflation. Among those expecting rates to be higher by Wednesday afternoon is CUNA’s chief economist, Mike Schenk, who expects the Fed will push up rates by 75 basis points. That follows the full one percentage point increase made during the Fed’s July meeting. “That’s pretty substantial, but inflation is over 9%,” said Schenk...
Post a Comment
Read Complete Article HERE>»