“It’s time to hire another loan officer.” That’s exactly what one of our longtime clients recently told us. With $41 million in assets, they’ve averaged over 6% membership growth and 12% loan growth so far this year. What makes this accomplishment remarkable is the fact that they’ve been consistently achieving results like these over the six years we’ve been working with them.
You may be wondering, are those results normal? Consider this:
- In Q2 2018, YMC clients averaged 13.56% loan growth—well above the national average
- In Q2 2018, YMC clients averaged a steady 4.14% membership growth
I wish we could take all of the credit for these success stories. But while #teamymc plays an important role, each of our top performing credit unions creates their own success by valuing strategy, creating a positive mission-based culture, and holding their team (which includes us) accountable.
Every quarter, there are a few superstar credit unions who have worked their asses off to serve their members, and as a result, their numbers confirm their dedication. Here are a few examples:
After helping a $36 million credit union rebrand earlier this year, we developed and executed a strategic marketing plan that allowed them to generate a 48% spike in loan growth in Q2. Rebranding isn’t just about a fresh look or new logo; it’s about reintroducing yourself to your members and becoming relevant to a new generation of members who need you. By combining an updated aesthetic and a strong value proposition, this credit union gave legacy members a fresh perspective and helped new members view them as a viable lending option for the very first time.
Small is the New Big
Are you a small credit union that thinks you can’t grow? Stop listening to the industry trades put you down and tell you that you’re obsolete. Most of our successful clients are small credit unions with under $50 million in assets. One YMC client ($33 million in assets) saw loan growth of over 13% in Q2 this year. On average, they’ve grown members in the double digits for the past 12 months! How are they doing it? For starters, they have a CEO who isn’t afraid to take calculated risks and do things most credit unions that size would never consider. Beyond that, they have developed a home equity program that has become one of the primary drivers of their consistent (and impressive) growth. By listening to the specific needs of their community, they have been able to build out several home equity products that members cannot find anywhere else.
A New Look
After several years of negative member growth, one of the newest YMC clients ($85 million in assets) is turning things around. At the beginning of 2018, we helped them write and launch a strategic marketing plan, and for the first time in several years, they’re seeing positive returns on their investment—not only in marketing but also in the front-line education of their team. Since January, they have averaged 4% membership growth each quarter. While this may be a smaller number than our other credit unions, it’s just the beginning of a new era for this client. Another of our clients of almost five years ($50 million in assets) has averaged 22% loan growth over the first half of 2018! Growing your credit union is a marathon, not a sprint. Be strategic. Work the plan. Hold your team accountable. And most importantly, be patient!
Can You Turn This Thing Around?
We are passionate about working with credit unions who are in a bad spot. “Can you help us turn this ship around?” is a question we’re often asked. Our answer? Yes, we can. After just six months, we helped one credit union ($35 million in assets) increase their net worth to meet the goals regulators gave them last year. Now that they are in a healthier spot, we are working to increase their income in order to fund the growth they want to achieve over the next five years. At this time last year, thinking ahead five years wasn’t even possible. The focus was on the day-to-day tasks required to keep the credit union alive for another day. Don’t give up hope. Success is achievable as long as you’re willing to work hard.
How do you contend with larger credit unions and competitive markets? No matter your asset size or current market, you should be asking yourself, “How can we compete?” But before asking that, you should consider a different question. “Are we relevant?” To thrive in your market, you have to differentiate yourself from the competition. This simple, yet essential step is how we helped one credit union ($674 million in assets) achieve steady 7% loan growth for the first half of 2018 even though they are located in one of the largest cities in the United States and face competition from within and outside the industry. With YMC’s help, they’ve learned to understand their competitive advantage, arm their staff with the knowledge to win on the front line, and execute a strategic marketing plan on a consistent basis.