Credit unions today are seeking new and inventive ways to assist their business members.
This represents a fundamental shift in the perspectives of management as well as the business members requiring services tailored to their needs. During a survey conducted by a Michigan credit union, data was gathered on what is keeping business members from expanding their relationship with credit unions. The overwhelming reason was a lack of products and services.
These results present a two-fold opportunity for credit unions. First, the ability to better serve their communities by expanding business membership services. Second, the creation of an additional revenue stream for the credit union. This second opportunity can be an unfamiliar concept to many credit unions.
As providers and proponents of business services, we are often asked: Why would you want to charge more than the cost of the service?
We know it is typical for a credit union to take a product cost and either absorb it or pass it through without any markup. This philosophy should be examined and refocused. A credit union’s strength, continuity, and ability to continue to provide value to its membership depends on a strong and perpetual revenue stream. Enhanced business services can be provided to the business member, at a fair and competitive price. This not only provides value to the business member but also a return to the credit union allowing it to re-invest and further expand its member offerings.
Expanding business services offers a significant opportunity for creditunions to both add value to their members and support its strength and continuity. Credit unions must be willing to reassess their perspective on business member services as they seek to continue to create value in the credit union space.
According to Industry Tracker Coalition, “banks globally generated $209 billion in revenue from transaction banking, (in one year alone) which encompasses both cash management and trade finance, compared with the $172 billion brought in by their trading units.”
It’s credit unions’ turn…