Through ups and downs, thick and thin, traditional and emerging schemes, one thing remains constant for credit unions: budgeting season. As we all know, October is the month credit unions start to strategically plan and budget for the coming year and beyond. The season typically begins with big ideas for growth and improving customer relationships, but sadly ends with a tight budget that reflects must-do tasks driven by government regulations.
Members are the driving force behind all your credit union’s activities, and that’s understandable. Not only does your business strategy focus foremost on fulfilling their needs, but with directors who are members it’s a given that member interests will be top of the priority list. That makes your credit union budget strategy different from that of a for-profit bank, in the following ways:
The future of your Credit Union depends upon how you adapt to the changing landscape of the financial industry. One aspect of the change is leveraging your greatest tool for fee income—debit and credit card interchange revenue. Take a look at some of the emerging strategies, then compare them to your CU's current approach.
As consumers increasingly shop online and pay bills with debit and credit cards, it’s more important than ever for credit unions to improve cardholder experience, providing them swift, easy access to accounts and data anytime, anywhere. For the credit union itself, it’s vital to maintain up-to-date cardholder information in order to ensure members consistently use the credit union’s card for all their payments. It’s a challenge, particularly when competing with institutions that have a far greater marketing reach.