For more than a decade, the need for retirement savings and the level of focus needed on an individual’s investment plans has changed dramatically. The world around us has pivoted from providing traditional retirement programs and pensions, putting the onus on the individual. This has become even more important during this time of global pandemic and economic uncertainty.
We’ve known for some time that credit union members would prefer accessing financial services at a credit union—more than half of members state that. However, only 3% of members utilize their credit unions for investment services according to research from Kehrer Behlen.1 With many members struggling financially and facing uncertain futures, this is a time when future planning on retirement goals might be put off. However, now more than ever is when credit unions should be the trusted, go-to source to help members through this crisis.
Credit unions will benefit from increasing their focus on helping more members become educated and ensuring they have plans in pace to help provide peace of mind that their future needs are being covered. This delivers on member needs and builds the credit union business overall. As research shows, members who engage with a credit union do more business with them in the long term and are more loyal. In fact, households that own an investment or insurance product from their credit union are 13% more likely to not consider switching from their credit union when compared to all households who consider their credit union their primary financial institution.1 Successful credit unions do this by ensuring that investment services are seen as equally important as their savings, lending, and insurance businesses and defining a clear vision for their wealth management program.
Making investment services core requires more than a vision. It involves deep thought, a different strategy, and incorporation of these best practices:
Having a disciplined plan in place and planning for success, while being able to adapt to the changing world we live in and adjust as needed, works. It starts by treating the program as core. When you adopt a thoughtful, disciplined approach to growth, it pays dividends in terms of helping members achieve their goals while helping you deliver on your mission.
Read more about financial advising in credit unions.
1 Kehrer Bielan Consulting, “Making Wealth Management Core in Credit Unions”, Feb. 2019
2 JD Power, “Technology, Social Media Critical to Bridging Financial Advisor Age Gap, J.D. Power Finds” July 2019
https://www.jdpower.com/business/press-releases/2019-us-financial-advisor-satisfaction-study
3 Cerulli Associates, “The Great Wealth Transfer”, November 2020
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Corporate headquarters are located at 5910 Mineral Point Road, Madison WI 53705. © CUNA Mutual Group, 2021. All Rights Reserved. CORP-3462059.1-0221-0323
CUNA Mutual Group is a five-star business partner of Cornerstone Resources.
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