“GROWING YOUR CREDIT UNION”
Ideas to Increase Your Membership
in Today’s Economy
What We’ll Cover
Your Current Field of Membership
How Do You Determine Members’ Needs?
Your Marketing Plan & Marketing Strategies
Field of Membership Expansion Opportunities
Who are You Chartered to Serve?
Do you know who qualifies for your
field of membership?
Has your sponsor company been acquired?
Obtain Section 5 of your credit
union’s charter
Has your sponsor company changed its name?
1. Contact your NCUA Examiner
2. Contact your Region’s Division of
Insurance
3. Contact State Supervisory Authority
(SSA), if state chartered
Things to Consider
Current Members ~ Family Members
Potential Members
4
Don’t Forget Family Members…
Definition
Immediate Family Member Means
Siblings,
Stepsiblings
Parents, Stepparents, Grand
parents
Children, Stepchildren,
Adoptive Children,
Grandchildren
Spouse
Study Member Growth Trends
Has your credit union experienced positive or
negative growth trends?
Understand your target markets.
What target markets are growing? (Why)
What target markets are contracting? (Why)
Review Internal Membership Data
• Generate reports to identify
demographic data.
Membership
Data
• Determine if software vendor
can provide demographic
data (there may be a fee).
Methods to Identify Eligible Members
Internet/Maps
Sponsor
Company or
Associations
Census Bureau
and Labor Dept
Publications
Community
Organizations
Trade Groups
How Do You Determine Need?
Develop a membership survey and ask the following questions:
Are you using the credit union?
Why?
1. What products
and services are
you using?
2. Do your
immediate
family
members
belong?
3. Is our
location and
our hours
convenient?
Why
not?
4. What
products and
services would
you like to use
that are not
currently
offered?
5. Is our staff
professional and
knowledgeable?
6. Do you
consider this
your primary
financial
institution?
What is Marketing?
Marketing is……
Establishing, maintaining and enhancing longterm relationships with members so both the
credit union’s and members’ objectives are
met.
Credit union’s
Objectives
Members’
Objectives
10
Reasons to Market
Your
Field
Membership
WhenCurrent
you need
to of
develop
your credit union.
WhenDoyou
to reinforce
a positive
image.
How
Youneed
Determine
Members’
Needs?
WhenMarketing
you needPlan
to grow
your membership
base.
Your
& Marketing
Strategies
When there has been a change in your field of
Field
of Membership Expansion Opportunities
membership.
Develop a Marketing Plan to Reach Existing
and/or Eligible Members
Step 1.
Step 2.
Select Your
Target
Markets
Set
Marketing
Goals
Step 3.
Step 4.
Formulate
Marketing
Strategies
Measure
Results
12
1. Select Your Target Market
Step 1.
• Determine what demographic (s) your
marketing effort will focus.
2. Set Marketing Goals
Step 2.
• Determine what goals credit union
management wants to achieve such
as increasing members, loans
and/or shares.
Step 2.
• Make the goals realistic,
achievable and measurable.
Great Member Service
Good Products and Services
Convenience
On to Winning Strategies…
3. Formulate Marketing Strategies
Step 3.
Step 3.
Step 3.
• Run newspaper or radio ads
• Promote excellent member service
• Develop a website
• Distribute brochures in lobbies at Select
Employee Groups (SEG)s
• Develop a Financial Literacy Program
3. Formulate Marketing Strategies
• Distribute new members’ kits
Step 3. • Develop a newsletter
Step 3.
• Use bulletin boards
• Email marketing promotional to SEGs
Step 3. • Participate in sponsor activities
3. Formulate Marketing Strategies
• Consider marketing efforts with an emphasis to
the youth and young adults by using Twitter,
Step 3. Face Book, Email or other popular media
Step 3.
• Recruit new businesses
• Promote credit union membership as a
Step 3. benefit that can be added with little or no
cost to the business
3. Marketing Strategy
Examples
Step 3.
Step 3.
Step 3.
• Promote Family Membership – Provide gift cards for each new
family member joining the credit union
• Attract Youth Accounts – Coloring contests for kids or matching
$10 deposits for youth savings are some ideas
• Financial Literacy – Conduct a workshop or develop an
informational pamphlet on how to improve your credit score,
obtaining a mortgage loan, or balancing a checkbook for all ages
• Attend Sponsor Activities – Have a booth at a sponsor event and
give incentives to join the credit union such as $25 to open a new
account, $100 if approved for an auto loan, or $150 if you bring
an existing loan from another institution, etc.
4. Measure Performance
Step 4.
Step 4.
Step 4.
• How do your marketing efforts compare to industry
average?
• Do you know for certain your marketing efforts are
effective?
• Are your members satisfied?
Keep A Record
Repeat the Good Stuff!
Field of Membership(FOM)
Expansion
Why FOM
Expansion?
• Expansion provides a
viable option for
credit unions seeking
growth opportunities
Field of Membership Expansion
Benefits
• Diversifies your
membership and risks
FOM Expansion • Provides new markets
and opportunities
Benefits
• May mean survival of
your credit union
Field of Membership Expansion
Risks
FOM Expansion
Risks
• Lack of familiarity with
new members
• Can damage relationship
with sponsor
• May create additional
compliance risk
Common Bond Expansions
Your
Field
of Membership
SingleCurrent
Common
Bond
Expansions
Conversion
Single to
MultipleNeeds?
Common Bond
How
Do Youfrom
Determine
Members’
Multiple
CommonPlan
Bond
ExpansionsStrategies
Your
Marketing
& Marketing
Field of Membership Internet
Field of Membership
Expansion Opportunities
Application (FOMIA)
Single Common Bond (SCB)
Expansions
Occupational
or
Associational
Common Bond
• Add contract employees
of an occupational
common bond
• Add churches of the
same denomination
SCB Expansion
Requirements
• Cover letter to
Regional Director
SCB Expansion
• Complete NCUA Form
4015 EZ
Multiple Common Bond (MCB)
Conversion Requirements
SCB to MCB
Conversion
• Letter to Regional Director
requesting conversion to MCB
• Complete NCUA Form 4015
or 4015EZ as applicable
• Submit letter from the group
and bylaws if association for
MCB
Multiple Common Bond (MCB)
Expansion Requirements
MCB
Expansion
• Complete manual or Internet
application.
• Complete NCUA Form 4015 or
4015EZ as applicable.
• Submit letter from the group and
bylaws if association for MCB.
• Log onto
http://www.ncua.gov/data/FO
MIA/NCUAgovLink.htm for the
Internet application.
FOM Internet Application
Criteria for Approval
Group must have less than 3,000 potential members.
CU must have less than a CAMEL 3.
CU must have Net Worth of 6 percent or greater.
Distance must be 25 miles or less.
Community Charter
Conversion/Expansion
Chapter 2, Section V, of the Chartering Manual
Convert to or expand current community
Cannot have SEGs & Community Charter
Cannot add Underserved Areas to Community Charter
1. Community Conversion/Expansion
Background Information
• Federal Credit Union History
Step 1. • Membership Penetration
• Reason for Conversion
Step 1. • Area Requested
• Population
Step 1. • Groups & Number of Members Outside
Proposed Community
2. Identify Community Boundaries
Step 2.
Step 2.
• Well-Defined Local Community
(WDLC) is met if:
• within a single political jurisdiction
• WDLC may be met if:
• Multiple contiguous if population < 500,000 or
• Metro Statistical Area (MSA) population < 1 million
3. Determine Proposed FOM Wording
Example
Step 3.
• Persons who live, work, worship or attend
school in, and businesses and other legal
entities located in geographic area
4. Community Charter
Conversion/Expansion
Step 4.
• Include at least two MAPS of the community
with at least one statewide map highlighting
the requested area
Map - Example 1 (Census)
36
Map - Example 2
37
Map – Example 3
38
Map – Example 4
39
5. Community Charter Package
Includes
Step 5.
• General Background
• Narrative Proving Local Community (if applicable)
• Proposed Field of Membership Wording
Step 5.
• Maps (Local and Statewide)
• Marketing Plan addressing how the community will be
served
Step 5.
• Business Plan addressing how conversion fits CUs objectives
and how management can support the plan.
• Pro forma Financial Statements for two years after
conversion with assumptions
• Anticipated financial impact on the credit union
Understand your members and their financial needs.
Offer the best products that meet your members’ needs.
Make it easy for members to access your services.
Consider FOM expansion for growth opportunities.
41
References
Your
Currentand
Field
of Membership
Chartering
Field
of Membership Manual
FOMDo
Internet
Application
– User Instructions
How
You Determine
Members’
Needs?
FOM Internet Application – Frequently Asked
Your
Marketing Plan & Marketing Strategies
Questions
LetteroftoMembership
FCUs 03-FCU-05
Field
Expansion Opportunities
Questions
?