Even as not-for-profit businesses, credit unions are aiming for growth in many areas this year — loans, net income and deposits chief among them — but CEOs say recruiting new members must come first.
Once new members are on board, the opportunity to introduce them to lending and savings products often follows, and that can lead to growth in other segments. First and foremost, the addition of members allows credit unions to justify opening more branches.
"We are expanding our footprint and are focused on new members so we can continue to grow our deposits," said George Nahodil, president and CEO of Members 1st Federal Credit Union in Enola, Pennsylvania. "We built five branches in 2022 in an effort to provide better service to our expanding membership base. We have found that new branches equate to new members."
Deposit growth is
But Brian Grytdal, senior vice president of marketing and facilities for the $2.1 billion-asset Horizon Credit Union in Spokane Valley, Washington, said membership growth is tough in today's environment in part because of new offers and new technologies constantly being rolled out by competitors.
Membership is top of mind for many credit unions today, Grytdal said during a conference session Monday on key management issues.
"So how do you get your message out there in the right channel at the right time? That's a huge challenge," Grytdal said.
Nutmeg State Financial Credit Union in Rocky Hill, Connecticut, had 41,065 members at the end of 2022, essentially flat from a year earlier.
Nutmeg President and CEO John Holt said membership growth is a "major focus" for the $553 million-asset institution this year.
"Our plan is to grow net membership by at least 5% and ramp up that number significantly over the next several years," he said in an interview. "Additionally, we are focused on growing interest income by at least 20% this year through 'loans with a purpose,' which will target underserved individuals in underserved communities."
CEOs in recent weeks have indicated they feel good about
Holt said Nutmeg State Financial will also begin measuring its members' experience to ensure they are receiving exceptional service. "A solid operation supports solid growth," he said.
Wright-Patt Credit Union in Beavercreek, Ohio, named
"For 2023, we have three new [branches] opening that will serve existing members but also allow for better opportunities to extend our reach," Mislansky said in an interview. "We are also piloting the CUNA Financial Counseling Certification Program with a number of our partner-employees to provide them with more tools and skills at helping members through life."
For Elevations Credit Union in Boulder, Colorado, its 2023 growth initiatives are focused on delivering strong member experiences through technology and service enhancements, combined with better utilization of data through predictive analytics, said Gerry Agnes, president and CEO of the $3.3 billion-asset company.
Additionally, in 2023 the credit union expects to realize the benefits of investments it has made in its team, technology, processes and branch network.
"Our capital position is exceptionally strong, even under extreme stress-testing scenarios. We are well positioned from a liquidity standpoint and are not concerned about deposit outflows," Agnes said in an interview.
He added that Elevations is the top residential lender in its market and it manages a $6 billion mortgage-servicing portfolio. Elevations' wealth management team finished 2022 with $650 million of assets under management, surpassing its goals, and Agnes said both mortgage and wealth management are areas where the company is looking for growth in 2023.
CUNA President and CEO Jim Nussle said two-thirds of Americans are financially unhealthy and living paycheck to paycheck, and getting more of them into a credit union could help.
"At the center of everything we do is our member and our membership," Nussle said.
