Centuries ago, countries used to go to war over access to waterways. For credit unions, those waters are their deposit accounts, says David Koch, president/CEO of Farin & Associates.
Koch provided an overview of how credit unions can win the “battle” for deposits at the 2018 CUNA CFO Council Conference in Austin, Texas on Monday. “You need a way to have water continually flowing into your credit union,” Koch said.
Koch said the “war” is both short-term (liquidity) and long-term (funding). “How you fund your credit union needs to be very specific in terms of the deposit products you offer and the markets you serve,” said he says.
Credit unions must design different products for different demographic segments. “If you can say, ‘Here are all my products and here’s what they’re designed to do,’ you can take them to your front-line staff and tell them what to sell in each situation, because right now they’re probably just trying to give members the best rate,” Koch says.
Koch offers a “battle plan” for attracting more funding:
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