MADISON, Wis.–Membership growth, and in particular young adult membership growth, is a central theme that comes up repeatedly from members around the world, according to Brian Branch, president and CEO of the World Council of Credit Unions.
Brian Branch
And that challenge, wrote Branch in a blog post, ties in to the other four key challenges reported by World Council members:
- Regulatory burden
- Payments innovation
- Membership growth
- Small credit union sustainability
- Competition from non-traditional entrants
“Credit unions systems need empowering / less restrictive legislative and regulatory frameworks to grow,” wrote Branch. “Regulatory advocacy helps remove the regulatory barriers to growth or to the ability of credit unions to provide the services that enable them to grow. Credit unions need mobile, online and payments technology in place to respond to consumer demands. Analysis across many countries shows that the credit unions achieving the highest member growth rates are those who provide the full array of products and the omni-channel convenience of branch, online and mobile access. These are the same characteristics that attract young adults.”
The credit union community, said Branch, needs to document and share young adult membership growth best practices and tools. For small credit unions to be sustainable, they need not only greater efficiency and regulatory relief, but also the ability to offer the complete range of products including mortgage and vehicle financing, as well as the convenience channels that members demand, he added.
“Young adults are flocking to the new entrant market disruptors, which are often global in nature,” Branch said. “We need to understand their market advantage and develop competitive strategies that learn from their attraction. In addition, credit unions can explore how they can partner with new market disruptors, as these mobile banking services are already so mainstream among young adults.”
In the blog, Branch reiterated the World Council’s Vision 2020, which was introduced in 2014 with an objective of increasing credit union membership by at least 50-million from 208 million at year end 2013 to 260 million in 2020.
“The Vision 2020 campaign will provide the worldwide credit union movement with actionable items, resources and steps to participate in reaching Vision 2020,” said Branch. “Through online platforms and offline empowerment, credit unions around the world will pledge to expand financial inclusion with their cooperative nature…Many credit union systems set goals for their membership for 2020. Many have written or connected to ask for lessons, best practices, and advice on how to increase membership from their international colleagues.”
Branch said that as part of WOCCU’s “Build the Brand Program,” it will identify credit unions with successful membership growth strategies and products and develop tools for assisting credit unions with membership growth.