BY BOB SCHROEDER
Is your credit union giving the people who walk through your doors what they want or what they need? Leveraging the opportunity for want into both want and need could see your member participation, loan yields and ROAs soar. Welcome to the financial version of TV’s “Extreme Makeover.”
Have you seen the “Extreme Makeover: Home Edition”?It is an American reality television series providing home improvements for less fortunate families.The show’s team takes a family home and makes substantial improvements to it, which also improves the quality of life for the family.At times we do a similar thing with an Extreme Makeover: Financial Edition!But are we consistently offering our members the best financial solutions?
Our members are the backbone of America.They build cars, roads and buildings, teach our children, work at the steel mill, repair our cars, work at the airline, work for the federal or state government, are employed by telephone companies and more.While they are experts in their field, that does not make them financial experts.
Many stumble through their financial life.The get a credit card because a lender, such as Capital One, mailed them numerous solicitations.They received their car loan from the finance manager at the dealership who is trained to close90 percent of loans.They purchased a home with a mortgage from their Realtor friend.They maxed out their credit card improving their home,and when the dishwasher unexpectedly went out, they applied for a Lowes card to finance the replacement.Not exactly a master financial plan.
Somewhere along the line they get to your credit union.They ask for and receive a vacation loan.Congratulations you did an excellent job filling the order!You had a great chance to make a big impact on their life and you gave them what they asked for, not what they need.