How to Grow Core Deposits for Your Credit Union

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Past financial trends shape how credit unions grow in the present and future and the tumultuous ups and downs of the economy, world events, and interest rates over the past 20+ years has created an environment today where it’s crucial for many institutions to reexamine their strategy to ensure long-term stability through growing core deposits.

It’s too early to say exactly what the “new normal” will look like for local credit unions, but we can project some trends with confidence.

Rising rates will put a spotlight on core deposits and other low-cost funding sources.
Higher rates may dampen loan demand in the short to intermediate term.
There will always be demand for loans for essential purchases like cars and homes.
Local financial institutions may need to refocus their strategies in light of diminished loan demand.

So where do you start? We’ve helped credit unions meet their loan-to-deposit ratio goals for over 20 years, so we’ll begin with some tried-and-true methodS.

Three Critical Core Deposit Growth Strategies

Utilize these strategies in day-to-day interactions and for your long-term institutional strategy to bolster core deposit growth for your credit union.

1 – Outstanding Customer Service

As a credit union, outstanding customer service helps you stand out from competition. Great customer service is about treating members with respect, foreseeing member questions and concerns, providing knowledgeable solutions, and clear communication.

Whether it’s a representative from the call center or in-branch visit, members rely on credit union staff to guide them through financial challenges and connect them efficiently with services that properly meet their needs so make it paramount to train your staff on delivering the best member experience possible.

view inside a credit union designed for great customer experience

2 – Focus Locally

Unlike big national banks, credit unions are often more community-based and integrated and that can be quite an advantage! Having a real connection to the community that you serve helps establish a more personal working ecosystem, custom-tailored to the markets you serve. Strategically focus on meeting your local member’s needs and showcase your commitment to those around you. This will work wonders in helping generate your deposits.

3 – Personalize In-Branch Experiences

As effective as modern credit union technology is, nothing compares to a personal human-to-human connection, which is one reason why the branch will never go away. Members will always appreciate personalized financial guidance from staff in a warm, welcoming, professional environment.

Do you staff greet members upon their entrance?
Do you have comfortable furniture in the lobby space for folks to wait on?
Is your branch design well-lit and spacious?

Being able to provide friendly, in-person retail banking experiences improves member participation, trust and long-term loyalty to your institution, so make sure your branches reflect the personal attention your institution prides itself on providing.

Growth Strategy & Consulting for Credit Unions

The financial landscape is constantly changing and it’s essential that growth-minded credit unions continue to evolve whilst also relying on time-tested strategies.

Putting members first by maintaining accessibility, providing a personal connection, and enhancing member services will help you grow core-deposits and long-lasting members.

Here at LEVEL5 we can assist you in creating a credit union growth strategy that sets your institution up for reliable growth for years to come.

For over two decades, we have created solutions for credit unions that cater to each organization’s unique needs, that’s why our clients grow 38% faster than their peers on average!