OVERLAND PARK, Kan.–Ten credit unions have invested in MEMBERS Development Company over the past year.
The CUSO allows its owner CUs to jointly research and implement new initiatives, streamline operations, and save money. Among MDC’s latest initiatives are studies on member experience, onboarding and engagement, and personalization.
Over the past year MDC has welcomed Bethpage Federal Credit Union ($6.1 billion, Bethpage, N.Y.), Evansville Teachers Credit Union ($1.1 billion, Evansville, Ind.); Five Star Credit Union ($330 million, Dothan, Ala.); GECU ($2.1 billion, El Paso, Texas); Meritrust Credit Union ($989 million, Wichita, Kan.); NASA Federal Credit Union ($1.5 billion, Upper Marlboro, Md.); Public Service Credit Union ($1.6 billion, Denver, Colo.); Tower Federal Credit Union ($2.7 billion, Laurel, Md.); and United Federal Credit Union ($1.8 billion, St. Joseph, Mich.); bringing the total to 43 credit union owners.
“Cooperation is a basic credit union tenet, but it’s one our industry doesn’t always practice – often out of fear of giving away a competitive edge, when in fact it is fairly rare when another credit union is a key competitor” said MDC CEO Jeff Kline. “Yet, the truth is that everyone benefits when we work together. It’s exciting to be part of an organization whose owners actively practice that premise.”
For Denver-based Public Service Credit Union, the key attraction in joining MDC was its ability to add value to the industry, the credit union and, ultimately, its members.
“Partnering with MDC gives us scale, not only to help us compete with the deep pockets of large, traditional, financial services competitors, but also with those who are taking aim from outside the industry,” said Todd Marksberry, president/CEO of Public Service CU.
MDC has recently published research showing that while consumers respond to personalized experiences, it can be challenging for credit unions to keep up with this demanding task. MDC is performing research on the use of messages individually tailored to members to determine its effect on member satisfaction, engagement, and loyalty. This includes identifying the people, process and technology needed to optimize personalization strategies.
MDC also has been researching members’ onboarding experience and engagement.
“Credit unions only have a short window in which to convert new members into engaged members, so it’s vital to understand the factors that drive engagement, how various models are designed and what is the bottom-line benefit,” Kline said. “Also, how can we reengage long-standing members who are largely inactive? Our research affirms that older generations tend to be the most engaged, while Millennials are least engaged, indicating a key area for improvement.”
Kline cautions that inactive members tend to be less loyal and more likely to switch institutions. In contrast, engaged members typically take pride in their credit union, trust it to “do right” by them, and are more likely to give word-of-mouth recommendations.