CREATING A CULTURE OF ENTHUSIASM

Managing a lending operation is not an easy job.  It’s made even more demanding in a small credit union, where a single individual
may be responsible not only for lending, but for many other aspects of the operation.  And because loans are the heart of the credit
union’s operation, they deserve and get attention from both the board of directors and the membership.

The first requisite for creating a successful loan program is to develop enthusiasm on the part of the staff.  If the lending staff—
whether that staff is the manager, a loan officer, or a lending manager—comes to work each morning expecting to do exciting things,
then that culture will infuse the credit union and the members who apply for the loans.

Lenders need to really believe that the credit union exists for the purpose of making loans to members.  That’s more than a job.  It’s
a mission.  A credit union lender must be a true believer in order to reach full potential on the job.

When one person is excited about doing the job, others in the operation will begin to feel the same way.  Enthusiasm is contagious. 
The credit union has a tremendous advantage in showing its employees that it is a different kind of business organization.  As a not-
for-profit, people-helping-people organization, it offers intangible benefits other financial institutions can’t match.

SELF-ASSESSMENT—
Is Enthusiasm Part of Your Culture?

Emphasize that service to members is more than a slogan—it’s a way of life.  Make sure everyone knows the history and philosophy
of credit unions.  It’s up to management to make sure employees understand the many ways in which credit unions help people, and
how they personally contribute to that effort every day.

SERVICES FOR THE SMALL

It is always difficult to offer new services that are cost effective and draw interest from your members.  Today, credit unions are
seeking new revenue sources and trying to find ways to bring value to members.   Here are a few services that may interest your
members.

Electronic Bill Payment for Credit Unions
This is a service offered by MY CU® Services LLC, a wholly owned subsidiary of Mid-Atlantic Corporate Federal Credit Union, for
those credit unions who wish to become the bill paying agent for their members. 

The program:
            1.         Is cost effective for your members.
            2.         Is convenient for your members, volunteers and staff.
            3.         Provides on-time bill payments for your members.
            4.         Is secure for bill payments.
            5.         Is an alternative to member share drafts.
            6.         Provides your volunteers and staff all the advantages of our traditional EBP program.
            7.         Makes tracking member payments easy.
            8.         Offers images of paid items online at no additional cost.

Money Orders
Trying to buy a money order to pay a bill, purchasing something on eBay or giving a gift?  Have you found that the fees are high at
local banks, convenience stores and post offices?

By offering money orders to your members, you provide a great service at any volume, whether you sell one or a hundred
money orders monthly.

The competitive advantages are:
                        1.         Auto issues with no monthly minimum.
                        2.         No long-term contracts.
                        3.         Low per item charges.

PayCard
In this electronic, needed it yesterday age, meeting your members’ needs quickly is critical.  If your credit offers ACH
(automated clearing house) services, PayCard may be your ticket to ease of 24/7 service.

The PayCard is a revolutionary product designed to transform the paycheck process by placing payroll funds on a debit card
electronically with easy access at ATMs and point of sale. 

The member benefits by using the PayCard because:
                        1.         It eliminates check cashing fees or costly checking accounts.
                        2.         There is no need to stand in line to cash checks.
                        3.         It facilitates transfers and budgeting to family members with greater security and lower costs. 
                        4.         It provides the means to conveniently access cash at ATM’s and make purchases at POS.
                        5.         It offers availability of funds 24/7. 

The credit union benefits by using the PayCard because:
            1.         It provides another service to members.
            2.         It strengthens and protects existing relationships and aids in acquiring new ones.
            3.         It provides a “bridge” to become the primary financial provider.
            4.                   It offers additional ATM volume and interchange revenue.  

Your credit union can compete today by keeping present members and attracting new ones.  Your credit union can meet the
demands of your board of directors and regulators!  It is challenging and demanding, but it is possible.  The above programs are
for those credit unions that are not open every day, may never offer their members the member share draft program or may
want to offer a service that is easy to maintain and uses little staff time, but still wants to grow, expand, and excel!   

Article by Debra Cohn, Corporate Account Manager, Mid-Atlantic Corporate FCU, 800-622-7494 ex: 3227.

Marketing Your Products
Marketing is one area in which small credit unions actually enjoy an advantage over their large counterparts.  Sure, larger credit
unions have the opportunity to hire savvy marketers and invest in sophisticated data processing to run Management Customer
Information Files (MCIF).  They need to do so because the larger the credit union, the more diverse its membership.  And that makes
it difficult to get the right product, at the right price, to the right place with the right promotion.

On the other hand, with a more cohesive membership, the smaller credit union can easily implement those “four P’s of marketing” -
product, price, place, and promotion – without the need for elaborate or expensive marketing campaigns.

That’s not to say that small credit unions have no need for marketing.  Without marketing your products in some manner, even your
most loyal members may eventually be lured away.  But it’s not necessary for you to buy a full-page ad in the Sunday paper or a
60-second spot on the nightly news in order to have an effective marketing promotion.

Let’s examine the four P’s more carefully to see how they might apply.

Product: Tailor your products to your members’ needs.  Are they in a hurry? By implementing an open-end lending program, for
example, you can easily meet their needs for speed and convenience.

Are your members’ overextended?  Consolidation loans can put them back on track.  Do they have high schoolers?  Student loans.
The close relationship a small credit union can develop with its members provides ample opportunity to find out what’s on their
minds, and what products would best serve them.

Price: Small credit unions that have successful loan programs are not always the “low cost leader.”  Their rates are fair and
competitive.  They just aren’t always the lowest in town.  They succeed because few people base their buying decisions on price
alone.  The “hassle” factor, in particular, plays a large part in their choice of lender.  The more convenient the loan process is, the
less price plays a prominent role.

Place:  An on-site location provides visibility and convenience for many small employee-based credit unions.  The World Wide Web
also offers all credit unions – large and small – virtual space in the homes of both members and potential members.

Promotion:  Small credit unions have one of the most powerful marketing tools in existence at their disposal: Word-of-mouth
advertising.  Many credit unions find that when word gets around that the credit union is a good place for products, business walks in
the door.

Active board and committee members can be especially effective in passing the word about what the credit union has to offer. 
Member-to-member communication works well because it’s trustworthy.  Large corporations spend millions of dollars to build an
image of trust and credibility.  A small credit union only needs to nurture that image by continuing to provide quality service to its
members.

 Essentials is published periodically by:
The Delaware Credit Union League
4 Quigley Boulevard
New Castle, DE  19720
(302) 322-9341 or (800) 292-7875; Fax:  (302) 322-9354
Editor:  Jane Bailey, E-Mail:  jane@dcul.org