CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact

News

Home » 6 keys to effective funding
Operations

6 keys to effective funding

Create a plan for deposits, consultant advises.

May 20, 2019
Bill Merrick
No Comments
Dave Koch

Dave Koch likens gaining deposit share to running a “Tough Mudder,” complete with metaphorical mud and razor wire.

“But it’s fun, right?” Koch asks attendees at the 2019 CUNA Finance Council Conference in New York City.

The credit union movement faces tightening liquidity due to higher loan-to-share ratios and lagging deposit growth, says Koch, managing director, advisory services at Abrigo.

“We became complacent on deposits after the Great Recession,” he says. “We ate up deposits in a heartbeat after the last recession.”

While many predict a recession to occur during the next two years, he’s not convinced that will bring the related “flight to quality” surge in deposit growth previous recessions have brought.

“Who will supply this money?” he asks. “The only way to get money right away is with rate. We haven’t had price increases that get members excited.”

Koch offers six keys to effective funding:

1. Develop a plan for deposits. Determine how you’ll grow deposits on a continuous basis.

Most credit unions lack such a plan, he says. “How can we not have a plan for our supply chain? This should be a focus for your strategic plan this year.”

2. Build the strategy. Successful financial institutions compete for deposits via scale or strategy. Credit unions can’t compete with large banks on scale, so they should focus on strategy.

He suggests focusing on “early savers,” or those under age 40.

3. Be flexible to changing conditions.

4. Assign accountability. “Whose job is this? Who manages deposits in your shop? You need someone to be accountable for this,” Koch says. “We all have loan departments with processes. That’s the output. Who handles the input?”

5. Implement the right measurements. “It’s better to have poor measurements and try than to not try at all,” he says.

6. Act now. “You need a plan for deposits.”

►Visit CUNA News for more conference coverage, and get live updates on Twitter via @CUNA_News, @cumagazine, and @CUNACouncils, and by using the #FinanceCouncil hashtag. Learn more about the CUNA Finance Council, a member-led professional society for credit union finance executives, at cunacouncils.org.

KEYWORDS CUNA Finance Council deposits

Post a comment to this article

Report Abusive Comment

Credit Union Magazine: Spring 2022

Spring 2022

Credit Union Magazine’s Spring 2022 edition profiles four Credit Union Heroes and examines CUNA's advocacy priorities, the advocacy army, and financial well-being for all.
Digital Edition •  Subscribe

Trending

  • FOM modernization bill passes House Financial Services Committee

  • FOM modernization bill is free-market solution to address financial access

  • Payment services hub explained

Tweets by CUNA_News

Polls

Are you ready for CECL?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2022 Credit Union National Association | ADA Compliance Notice & Legal
Email Us