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Targeting Gen Z for Credit Union Growth

Gen Z person holding phone and debit card from a credit union

Generation Z has grown up in times of financial uncertainty and especially these days, they are still feeling the impact of Covid-19 on their income. How can you serve Gen Z well in order to help your credit union growth strategy?

Now more than ever, Gen Z prioritizes becoming financially savvy and your credit union should be equipped to provide them with the solutions they’re looking for, helping you create loyal members for a lifetime.  

Here are our expert tips on targeting engagement with Gen Z for credit union growth.

Centering Accessibility

Thanks to exponential tech advancements, Gen Z grew up in an “on-demand” environment and they’re used to being able to access anyone through phone, email, text, and chat. 

Your credit union must not only have the technology in place to address these needs, but must also clearly convey the “on the go” convenience of this accessibility to your Gen Z customers via your marketing strategy to help differentiate yourself from competitors.  

Providing Gen Z the flexibility to access your products and services when they want and how they want to across various platforms goes a long way in building loyalty among this generation. 

Delivering Cutting-Edge Technology

On top of accessibility via tech, Gen Z also expects the latest-and-greatest retail banking technology hardware itself. 

Having grown up with some of the best technology on the market such as smartphones, laptops, and iPads, Gen Z often expects the world around them, including their banking institution, to provide modern technology for speed and seamlessness in their interactions.  

For financial institutions, a retail branch experience complete with modern displays, tablets, or self-service kiosks positions you as an up-to-date institution that’s ready to meet the fast-paced needs of modern members. 

It may go without saying, but we’re going to say it anyway. Connect with Gen Z by creating a smartphone app. Creating an app for your credit union will make your services available even when you’re closed. When many credit unions were closed during the pandemic, members relied on their app for information and access to banking services. 

A modern, user-friendly app guarantees a good experience for members outside of the branch. 

Gen Z woman holding debit card using a computer for banking with her credit union

Promoting Your Debit Card

Many consumers seek sound financial advice from a trusted source, their banking institution. Most people that are a part of Generation Z are now directly affected by these unfamiliar times—which makes them want to become more financially educated to achieve their goals. They will look to their credit union to educate them.  

Promoting your debit card with Gen Z members will help them understand how to budget their money for their future. As a credit union, it’s not only important to encourage debit card use among this generation, but also budgeting to ensure that they’re on the right track to being financially responsible. 

By providing relevant financial advice, you form a connection that will continue to grow over time. And that’s a great way to leverage engagement with Gen Z for your credit union growth strategy. 

Contact Us for Credit Union Growth Strategy

Reach out to our expert credit union consulting and branch optimization team today for help with targeting and reaching new members – we’ve guided credit unions for more than 20 years with a reliable data-driven approach to identify member demographics and optimal ways to foster their engagement.

How to Grow Core Deposits for Your Credit Union

graph showing core deposit tracking

Past financial trends shape how credit unions grow in the present and future and the tumultuous ups and downs of the economy, world events, and interest rates over the past 20+ years has created an environment today where it’s crucial for many institutions to reexamine their strategy to ensure long-term stability through growing core deposits.

It’s too early to say exactly what the “new normal” will look like for local credit unions, but we can project some trends with confidence.

  • Rising rates will put a spotlight on core deposits and other low-cost funding sources.
  • Higher rates may dampen loan demand in the short to intermediate term.
  • There will always be demand for loans for essential purchases like cars and homes.
  • Local financial institutions may need to refocus their strategies in light of diminished loan demand.

So where do you start? We’ve helped credit unions meet their loan-to-deposit ratio goals for over 20 years, so we’ll begin with some tried-and-true methodS.

Three Critical Core Deposit Growth Strategies

Utilize these strategies in day-to-day interactions and for your long-term institutional strategy to bolster core deposit growth for your credit union. 

1 – Outstanding Customer Service

As a credit union, outstanding customer service helps you stand out from competition. Great customer service is about treating members with respect, foreseeing member questions and concerns, providing knowledgeable solutions, and clear communication.

Whether it’s a representative from the call center or in-branch visit, members rely on credit union staff to guide them through financial challenges and connect them efficiently with services that properly meet their needs so make it paramount to train your staff on delivering the best member experience possible.   

view inside a credit union designed for great customer experience

2 – Focus Locally

Unlike big national banks, credit unions are often more community-based and integrated and that can be quite an advantage! Having a real connection to the community that you serve helps establish a more personal working ecosystem, custom-tailored to the markets you serve. Strategically focus on meeting your local member’s needs and showcase your commitment to those around you. This will work wonders in helping generate your deposits.   

3 – Personalize In-Branch Experiences

As effective as modern credit union technology is, nothing compares to a personal human-to-human connection, which is one reason why the branch will never go away. Members will always appreciate personalized financial guidance from staff in a warm, welcoming, professional environment.

  • Do you staff greet members upon their entrance?
  • Do you have comfortable furniture in the lobby space for folks to wait on?
  • Is your branch design well-lit and spacious?

Being able to provide friendly, in-person retail banking experiences improves member participation, trust and long-term loyalty to your institution, so make sure your branches reflect the personal attention your institution prides itself on providing. 

Growth Strategy & Consulting for Credit Unions

The financial landscape is constantly changing and it’s essential that growth-minded credit unions continue to evolve whilst also relying on time-tested strategies.

Putting members first by maintaining accessibility, providing a personal connection, and enhancing member services will help you grow core-deposits and long-lasting members. 

Here at LEVEL5 we can assist you in creating a credit union growth strategy that sets your institution up for reliable growth for years to come.

For over two decades, we have created solutions for credit unions that cater to each organization’s unique needs, that’s why our clients grow 38% faster than their peers on average!

Enhanced Credit Union Retail Banking: Remodel Your Branch for Optimal Member Growth 

Exterior of Champion Credit Union remodel completed by Level 5

Embracing Evolution to remodel your credit union

Remodeling credit union branches is essential to competing in an evolving market. In the rapidly evolving landscape of credit union retail banking, adaptation to technological advancements is paramount for institutions to remain relevant and competitive. 

However, embracing change should always be accompanied by a well-thought-out strategy. While the idea of creating a network of completely new modern branches might be enticing, it’s crucial to consider factors such as budget and operational capacity. 

Remodeling existing credit union branches can offer a practical and efficient solution. This article delves into the significance of credit union and bank branch remodels and outlines three tiers of remodeling strategies: 

  • Refresh
  • Redesign
  • Reinvent

The Need for remodeling credit union branches

In an era where technology drives member expectations, many branches are lagging behind in terms of design and functionality. While they may serve their purpose to some extent, they lack the modern strategies that can optimize member experience. 

Whether it’s an outdated floor plan or a lack of technological integration, the need for remodeling is evident. Even branches untouched since the 1960s are candidates for transformation, highlighting the universal need for change.

Farmers Bank & Trust interior remodel completed by Level 5

Three Tiers of Remodeling Strategies

1. Refresh: Surface-level Revival

The refresh strategy focuses on superficial changes to rejuvenate the branch’s appearance and drive member engagement. This involves minor fixes that cover up wear and tear accumulated over the years. A fresh coat of paint or wall graphics, repairing damaged surfaces, and replacing worn-out carpets are examples of these quick fixes. As a relatively simple process, refresh remodeling has minimal impact on branch operations. It’s a cost-effective way to enhance aesthetics and maintain a presentable environment.

2. Redesign: Modernization and Efficiency Enhancement

Moving up the remodeling ladder, the redesign strategy aims to address outdated elements and inefficiencies within the branch. This approach doesn’t entail a complete overhaul, but instead employs a targeted strategy to improve functionality.

For instance, replacing traditional teller lines with teller pods, incorporating Interactive Teller Machines (ITMs), or introducing tech tables with iPads can enhance member engagement and convenience. Even incorporating things like a coffee lounge, or a fireplace work wonders to create an inviting and comfortable experience. 

Watch our video on Colorado Credit Union’s Branch Remodel, where our team refreshed an existing space into a new branch with new teller pod layouts, a community room, and more!

View our video on 4 Remodels for Wasatch Peaks Credit Union in Utah, we helped create a modern, refreshed and uniform look, a complete overhaul from their older traditional spaces from the 90’s. 

Included in the remodels were:  

  • Teller Pods
  • Glass walls for an open-air environment
  • New Floor Plan layouts optimizing operations and members’ journeys  
  • Cash Recyclers 
  • Coin Machines

3. Reinvent: Complete Transformation for Maximum Impact

The reinvent strategy marks the most comprehensive and impactful form of branch remodeling. This approach involves a radical transformation, falling just short of entirely new branch construction. It encompasses elements from both refreshing and redesigning strategies while introducing more profound changes. 

Knocking down walls to create an open, flowing layout can greatly enhance member experience. This level of remodeling also presents an opportunity to reimagine brand execution within the physical space. Incorporating technology for a superior member journey, employing member consultation rooms, and manipulating lighting for ambiance all contribute to an immersive and modern banking environment.

Wasatch Peak Credit Union interior remodeled by Level 5

Adapting to Survive: The Necessity of Change

In the current landscape, embracing change is not just important; it’s essential for survival. With consumer expectations evolving rapidly, credit unions and banks must keep pace to remain competitive. Remodeling offers a tangible way to meet these demands, allowing financial institutions to offer modern, efficient, and engaging services to members. 

As financial services technology continues to shape the industry, remodeling becomes a means to not only survive, but to thrive.

example of remodel of credit union completed by Level 5

Taking the Step Towards Transformation

The evolution of credit union retail banking demands a proactive approach to change. While the idea of building entirely new branches may seem tempting, it’s also vital to assess the most suitable strategy based on budget, operational capacity, and member needs. 

Remodeling existing branches offers a practical and efficient solution. Whether through a surface-level refresh, a targeted redesign, or a comprehensive reinvention, branch design remodeling allows financial institutions to adapt, transform, and create a banking experience that aligns with the expectations of today’s tech-savvy consumers.

If you’re ready to embark on the journey of branch transformation, contact LEVEL5 to assess your branch needs and develop a tailored strategy for a modern and member-centric banking environment. Together, we can shape the future of your retail banking and growth through strategic remodeling.

Technology and the Branch of the Future

credit union data center remodeled by Level 5

Leveraging Critical Credit Union Data Components for Smart Geographic Expansion

In the ever-evolving landscape of data collection in the credit union and financial service industries, the race to capture new markets and enhance member experience has intensified. Basically, you have to keep up.

Furthermore, with the growing influence of technology, interwoven with strategy consulting, site selection, branch design, and building, this bevy of tools has become vital for financial institutions to stay competitive and thrive and meet members’ needs properly.

In this post, we will explore six crucial data components that inform the branch pro forma; as well as and aid in the geographic expansion plans of credit unions, enabling them to build the branch fit for the growth of the future.

1. Loans and Deposits Forecasting: Unearthing the Elbow Room

Understanding Market Viability

When considering expansion geographies and specific trade areas, it is essential to assess the availability of loans and deposits in that market before making a final decision on branch real estate site selection.

This crucial data component helps credit unions determine the “elbow room” or growth potential in a given area, identifying if there are still untapped opportunities or if the market is already saturated and unsuitable for expansion.

merging credit union data and technology

2. Competitive Analysis: Identifying Opportunities Amidst Competition

Beyond the Elbow Room

When entering a new retail banking market requires a thorough competitive analysis.

Accordingly, financial institutions must gauge the opportunities for a new entrant and assess how well they can compete against existing players. This involves understanding whether competitors dominate or outspend potential newcomers, ultimately determining if the market is viable for a new branch.

3. Consumer Overlays: Tapping into Existing Consumer Bases

Building on Existing Clientele

Another critical factor in successful geographic expansion is identifying how many existing consumers reside in the expansion geography.

A pre-built consumer base can significantly impact the success of a new branch, providing a strong foundation for growth and member engagement.

4. Demographic Tapestry Profiles: Recognizing Shifting Consumer Demographics

Mapping Consumer Demographics

Even if credit unions know their target consumers, they must ensure that these consumers reside in the expansion area.

Demographic tapestry profiles allow you to understand the overlays of the existing consumer base in potential expansion geographies. Consequently, this helps to avoid potential mismatches between target demographics and location.

Glasses and pen laying on top of paper data charts

5. Market Potential Indices: Measuring Consumer Behavior

Predicting Consumer Behaviors

Market Potential Indices (MPI) provide valuable insights into the likelihood of adults in a specific geographic area exhibiting purchase behaviors aligned with the banking products and services offered by the credit union.

This data component aids in assessing the market’s demand for the institution’s offerings or those they plan to introduce.

Business people in a group sitting around a conference table looking at charts, data and computers

6. 4 Square Quadrant: Mapping Branch Performance and Market Potential

Visualizing Success

The 4 Square Quadrant, a critical component of the LEVEL5 Branch Market Analysis engine, provides a comprehensive reading of proposed branches in a given trade area.

By scatter-plotting the branches based on performance and market potential, financial institutions can effectively gauge which locations are likely to thrive and which ones may under-perform.

Paving the Way for the Credit Union Branch of Tomorrow

In the dynamic world of financial institutions, leveraging technology to analyze critical data components is paramount for making informed decisions regarding geographic expansion and long-term growth. 

Credit Union strategy consulting, site selection, and branch design and building can be significantly enhanced with the insights drawn from loans and deposits forecasting, competitive analysis, consumer overlays, demographic tapestry profiles, market potential indices, and the 4 Square Quadrant. Armed with these data-driven tools, financial institutions can confidently build the branch of the future, positioning themselves for success in a competitive landscape.

For expert guidance and assistance in harnessing the power of these data components for your institution’s growth and expansion plans, do not hesitate to contact LEVEL5, the industry leader in strategy consulting, site selection, design, and construction for credit unions and banks.

Let us help you create the branch of tomorrow that sets new standards and meets your members needs.

Designing Your Branch Prototype: Creating a Future-Proof Banking Space

Wasatch Peak Credit Union interior

A space says more than a thousand words, and your credit union branch prototype says a lot. In the ever-evolving landscape of credit union retail banking, your branch serves as the physical embodiment of your institution’s identity. A well-designed branch not only attracts new members but also nurtures existing relationships. It’s a space where face-to-face interactions occur, complex transactions are handled, and solutions are provided.

In this digital age, the branch remains a critical avenue for delivering the human touch that digital channels simply cannot replicate. As you consider reinventing your brand and enhancing your member experience, one vital strategy is the creation of a new branch prototype.

The Role of a Credit Union Branch Prototype in Modern Banking

Your branch isn’t just a building; it’s a strategic asset that showcases your brand, culture, and commitment to member service. A well-executed prototype branch serves as the foundation for your entire network, ensuring consistency and efficiency across all locations.

At LEVEL5, as leaders in credit union branch design for over 20 years, we emphasize the significance of a new branch prototype. The majority of our projects center around this concept.

Identifying the Need for a Branch Prototype in a credit union

The decision to develop a retail branch prototype arises when you seek a comprehensive and uniform approach to optimizing your branch network. This extends beyond new market entries, encompassing your existing branches in need of rejuvenation.

Often, established credit unions and community banks find themselves with multiple locations that lack engagement and alignment with their brand. A prototype offers a solution, breathing new life into tired spaces and setting the stage for future growth.

The Development Process

Creating a successful branch prototype involves a meticulous development process that caters to your institution’s unique needs, goals, and brand identity. The journey begins with an in-depth Programming and Visioning phase, where you collaborate closely with key stakeholders. During this phase, you uncover critical insights into your institution’s requirements, retail strategies, influences, and brand elements.

Once this foundational knowledge is gathered, the next step is synthesis. Our skilled designers work to weave these elements into a cohesive and functional design. The resulting prototype branch includes:

  • Structural outlines and preferred technology
  • Thoughtfully curated design choices
  • Integration of banking equipment and brand deployments
  • Incorporation of iconic elements
  • Attention to details like furniture style, tile selection, and carpet color

This comprehensive approach ensures that every aspect of your prototype branch aligns seamlessly with your institution’s vision.

Edwards Federal Credit Union exterior front

Flexibility And Adaptability

One of the remarkable benefits of a well-designed branch prototype is its adaptability. The prototype serves as a template that can be tailored to various needs, which saves time and costs on re-designing from scratch. This adaptability extends beyond replicating the prototype in new locations. You can seamlessly translate the standard-sized floor plan into:

  • Micro branches
  • Standalone kiosks in smaller towns
  • Adaptation for regional offices and operational centers

This flexibility ensures that your branch design components and member experiences remain aligned with your strategic goals no matter where you are meeting your members at. 

Embrace the Future with Your Branch Prototype

In an ever-changing banking landscape, where technology and member expectations evolve rapidly, having a modern branch prototype ready for deployment is a forward-thinking strategy. It’s a blueprint that accommodates growth, adapts to changing market dynamics, and ensures your branch network remains a relevant and vibrant growth asset.

Neighborhood Credit Union Branch exterior at night

Embark on Your Branch Transformation Journey

The role of the branch cannot be underestimated as you contemplate your credit union or bank’s future. It’s not just a physical space; it’s a strategic touch point that connects your institution with its members. Embracing a branch prototype approach, backed by a team experienced in design and implementation, can reshape your institution’s identity, enhance member experiences, and set the stage for sustained success in the dynamic world of banking.


Don’t hesitate to reach out to our team to discuss how a new branch prototype could transform your institution. With decades of experience in implementing effective and visually stunning branch design templates, we’re ready to guide you on this exciting journey toward branch innovation and excellence.

How to Choose the Perfect Location for Your Credit Union or Bank Branch

Sun Community Federal Credit Union exterior

a data-driven branch strategy approach

Selecting the ideal site for your credit union’s or bank’s next branch is a critical decision that can significantly impact your institution’s long-term success. Gone are the days of relying on intuition alone; today, financial institutions need to use data-driven strategies to make informed choices. 

At LEVEL5, we understand the importance of coupling data with our Branch Site Selection services to provide well-informed, actionable recommendations. In this article, we’ll explore why it’s crucial to let the data dictate the right location in your trade area and how partnering with a developer-minded firm like LEVEL5 can lead to the best results.

Bird's eye view of of a town with roads and trees

Data-Informed Branch Site Selection: More Than Drawing a Circle on a Map

Simply drawing a circle around a location on a map based on gut feelings won’t guarantee the best site for your next credit union or bank branch. Accurately assessing growth markets requires a comprehensive analysis of multiple data points that leads to a quantifiable recommendation. 

However, while having data pointing to a specific site is essential, it doesn’t guarantee the availability of suitable locations in that area. That’s why LEVEL5 synthesizes our data strategy with our vast real estate acquisition experience and capabilities.

Aligning Strategy with Actionable Branch Site Recommendations

Data without a clear strategy is meaningless. Paying for data analysis is only valuable if it leads to actionable insights. We combine our Site Selection services with the data obtained during our Branch Market Analysis Strategy sessions so that we only recommend prime sites which can be acquired. 

This integration ensures that the locations we recommend not only meet the data criteria but also align with your defined business strategy. By fusing data and strategy, we present you with workable options that truly support your long-term growth goals.

People in suits seated around a table discussing business

The Benefits of a Developer-Minded Branch Network Partner

Choosing a site is about understanding how the chosen location fits into your long-term plan. That’s why we think of ourselves as developers with your overarching plans as the goal, not mere brokers. Our approach involves a thorough assessment of the geographies and available options within a given trade area. 

Moreover, we overlay the Credit Union or Bank Branch Design types that best suit the specific location, directly aligning with your 10-Year Branch Pro forma developed during the Strategy phase. This approach ensures that the site chosen will indeed support your long-term objectives.

Construction worker and project manager on an unfinished job site wearing hard hats, looking at blueprints. Surveyor in the background.
Edwards Federal Credit Union branch exterior, three-quarters view

Location, Location, Data-Driven Action: Partner with LEVEL5 for the Perfect Credit Union or Bank Branch Site

Selecting the right site for your branch or headquarters is a critical process that requires more than just intuition or simple mapping. A data-driven approach, coupled with a clear strategy, is essential to making informed and actionable decisions to grow your branch network. 

At LEVEL5, we bring you the expertise of a developer, not a broker, as we assess geographies, identify suitable options, and align them with your long-term goals.

Let the data guide you to an optimal site and work with a partner who understands your unique needs. Contact LEVEL5 today to ensure that your financial institution makes the best location choices for sustainable growth and success.

Don’t Let Your Data Go to Waste: Maximizing Growth Opportunities in Credit Union Banking

apples for metaphor within Level 5 blog text

The Perishable Nature of Data in Credit Union Growth Strategy

Credit union growth strategy is like apples. When you go to the grocery store, and you see those ripe, crisp apples at their peak of freshness, you buy a bunch with every intention to consume them over the next day or so. You put them in a bowl, on the counter, but if they go unattended, they begin to stale, go past their peak freshness, eventually going rotten.

In the world of credit union banking, data and apples are one and the same. When delivered, they are fresh. If left alone, they begin to stale with each passing day. If you are a financial institution executive looking to grow and you are given fresh data, do you intend to do something with it, or will you just watch it rot?

When you hire a firm like LEVEL5 to assess your current and potential growth markets, we give you irrefutable data points and a 10-year pro forma back-tested at 96% accuracy. When looking to de-risk decisions, you have confidence in the black and white, binary numbers to help support your decisions. 

But that data has a shelf life, and you need to strike while the iron is hot. Otherwise, you may miss out on real growth potential because as time ticks on, your data becomes stale, all the while, your competition will likely be making their moves.

Let’s say you receive the data and you don’t act on it for 6 months…that’s 6 months you could’ve been making progress, now lost. Can your institution really afford to be behind for so long?

Neighborhood Slider exterior completed by Level 5

3 Ways Current & Valid Data Assist Your Overall Growth strategy For your credit union

Change is the only constant, and how you fare rests on your ability to adapt accordingly. That goes for branch networks too, one of your major avenues for gaining and maintaining your desired membership.

Visualize your branch network as an ever-adapting entity, acclimating to the winds of change in market viability and member demographics.

You need to play this strategy correctly and decisively to win out. Accurate analysis for fruitful future steps can certainly be made in this state of flux. However, lingering on data longer and longer places your organization further and further behind in making highly effective moves for your network’s viability.

There are 3 pivotal ways to optimize your network, but acting on your current data analysis is highly time-sensitive in order to reap the rewards.

Opening New Branches in the Right Areas

With accurate market and demographic analysis aligned with your specific goals, you understand the logic and purpose behind opening up new branches in high-quality locations.

You don’t want to let solid direction pass you by here, as you’ll be missing out on prime locations that will be building up your member portfolio and holdings.

Worse yet, a savvy competitor may beat you to saturating a market before you can. Watch our video on Northeast Credit Union where we helped them grow into new places with informed market analysis.

1st Federal exterior front
growth is like apples

Closing Under-performing Branches

Branches that are repeatedly in the negative need to be closed and waiting too long means they’ll keep pulling valuable resources from your organization, resources that could be reutilized elsewhere for growth.

Don’t worry, closing a branch is not the end of the world, in fact, it’s just par for the course. Similar to retail environments, it is part of the evolution of your institution. Their absence can be made up for in spades with your new locations that are primed for future performance.

Do you act soon and save resources based on your valid data? Or do you wait to see what happens while running a real risk of detriment to your institution?

Crafting Your New Branch Prototype

Your prototype works on so many levels to drive your institution into the future and holding back in its implementation sets you back even further. A world-class prototype design accounts for everything needed to make a success including, but not limited to:

  • A floor plan to facilitate employee and member interaction
  • A modern appearance that solidifies you as a leader in your market
  • Branding consistent with your culture and values
  • An easily repeatable and malleable design for effective, rapid deployment

When you meticulously create a new branch prototype, you’re laying the foundation for attracting new members and offering excellent quality experiences for years to come. This design is carefully crafted and tailored to meet the needs of your members’ unique demographics as well as to accommodate the future needs of your financial institution. Consider the following if you’re hesitant to put your prototype into action: Why go through all that upfront work creating the next generation of your institution, just to never use it? You’re truly doing yourself a disservice by waiting too long to act on quality data, plain and simple.

Data Crunch Time: Take a Bite of Growth Opportunities Before They Spoil

In the fast-paced world of credit union banking, data is a valuable asset that can drive growth and help you stay ahead of the competition. By acting on current and valid data, you can make strategic decisions about opening new branches, closing underperforming ones, and crafting innovative branch prototypes for the future. Don’t let success pass your organization by waiting too long to act on quality data.

Embrace actionable data and partner with experts who can guide you through the process of utilizing it for meaningful and lasting expansion.

Contact our team today to unlock your credit union’s or bank’s growth potential before time runs out. The clock is ticking, and your institution’s future success relies on your ability to adapt, make informed decisions, and leverage the power of fresh data.

Core Deposit Growth Strategy: Part 3

Back to the Future: Data-Driven Credit Union Strategy in Retail Banking

Thriving Post-COVID core depost growth strategy in credit unions

In Part One of our Core Deposit Growth Strategy Series, we explored the financial landscape from 2000 to the present, highlighting the impact of interest rates and the economy on personal and corporate budgets. Part Two delved into key metrics in the credit union industry since 2013, with a focus on the pandemic’s effects and the position that has left credit unions in today. 

Finally, in this last installment, we’ll provide specific steps for data-driven credit union strategy to help you attract low-cost deposits in the post-COVID economy. 

Embrace Data-Driven Technology for Enhanced Member Service

In today’s competitive financial services industry, technology is a non-negotiable element for delivering exceptional member service and fostering engagement and loyalty. Financial institutions must keep pace with the ever-evolving digital landscape to remain relevant. Additionally, Credit unions should invest in cutting-edge technology to meet member needs and prioritize seamless functionality. Adopting a data-driven approach ensures your credit union can analyze member behavior, anticipate needs, and provide personalized solutions promptly.

Target Generation Z for Low-Cost DepositS

Likewise, the Gen Z demographic represents a significant market opportunity. These digital natives have grown up in financially turbulent times and are accustomed to budgeting. Credit unions can offer financial education and enablement to help this generation reach their financial goals. Therefore, by understanding Gen Z’s unique preferences and needs, your institution can attract them as loyal members and encourage them to utilize low-cost deposit options.

Edwards Federal Credit Union exterior front

Reinvent Branches for Retail Banking Success

Despite predictions of their demise, branches continue to be essential in credit union retail delivery strategies. Branches may be smaller and more service-oriented, but they remain a valuable touchpoint for members, acting as an in-person advisory source for members’ important financial questions.  Markedly, credit unions should focus on strategic branch optimization and placement, emphasizing convenience, responsiveness, local decision-making, and outstanding member service. Engaging and knowledgeable branch staff can make a significant difference in member satisfaction and retention.

Compete Intelligently Against National Banks

Credit unions often face competition from large national banks with extensive resources. However, your institution has a unique advantage in their ability to focus locally. Therefore, by concentrating on key markets and leveraging your community connection, availability, and exceptional member service, credit unions can carve out a more personal niche that resonates with their local communities.

In challenging economic times, members seek additional support from their primary financial institutions. To build loyalty and retain members, credit unions and banks must provide an extra touch in personalized financial advice, problem-solving assistance, and guidance on growing their finances.

Create a Strong Market Presence

To stand out in the financial services crowd, your institution can employ a strategic blend of branches, ATMs/ITMs, and billboards to create the impression of widespread coverage. By carefully positioning these elements, credit unions can effectively showcase their presence and attract potential members.

Prioritize Accessibility and Consistency

Members expect easy access to their financial institutions through various channels, including voice, automated response, chat, text, and email. Your credit union must ensure consistent, correct, and timely responses across all these channels. Investing in staff training is crucial to delivering a seamless experience for members, regardless of the interaction method.

Encourage Debit Card Use for Budget-Conscious Members

Promoting the use of debit cards as a convenient way for members to access their funds aligns well with Gen Z’s focus on household budgets. Additionally, offering a connection to an online budgeting tool can further appeal to this segment. 

Highlight Local Connections and Member Testimonials

Credit unions should capitalize on their strong local connections, emphasizing factors such as location, community investment and involvement, decision-making, and ownership. By sharing success stories and member testimonials, credit unions can demonstrate the positive impact they have on their members’ financial lives.

Prioritizing Human Assistance in a Digital World

Despite the growing digital landscape, customers still value human expertise when it comes to financial advice and complex transactions. There’s no replacing the power of a personal advisory connection when it comes to building comfort and assurance. Financial institutions must strike the right balance between self-serve options and access to human assistance to cater to diverse customer preferences.

BUILD WITH CONFIDENCE

Put LEVEL5’s proven expertise to work for you. De-risk your future growth with the strategy, technology, site selection, design, and build services you need to launch the next phase of your credit union’s branch network.

Why Member Engagement Matters for Credit Unions and Banks

Active engagement is fundamental to building trust and fostering quality relationships between credit unions and banks and their members. Both entities must recognize the distinction between member experience and member engagement as they play pivotal roles in driving long-term retention and profitable business growth. 

Without meaningful member engagement, levels of trust can wane, relationships may weaken, and loyalty could be at risk. By prioritizing member engagement efforts and providing a personalized experience, credit unions and banks can strengthen their position as trusted financial partners, leading to higher member satisfaction, increased loyalty, and sustained success in a competitive market landscape.

This is a distinction that many credit unions and banks are still only beginning to fully contend with. In a survey, we asked credit unions and banks if they currently distinguish a difference between member experience and member engagement, but only a third of institutions (33%) said they currently make this distinction.

Embrace Data-Driven Strategies for Lasting Member Loyalty

As financial institutions navigate the post-COVID economy, a data-driven credit union strategy is vital for attracting low-cost deposits and cementing member loyalty. 

By leveraging technology, understanding Gen Z, optimizing branches, and providing exceptional member support, credit unions can thrive in a competitive landscape dominated by large banks. Engaging with members and providing valuable guidance will create lasting relationships, ensuring continued success for credit unions in the financial services industry.

In case you missed them, here are the previous posts in this blog series.

Growing Core Deposits Blog Series Part 1 ➝

Growing Core Deposits Blog Series Part 2 ➝


To achieve the full potential of data-driven growth strategies and solidify your credit union’s position in the market, contact LEVEL5 today. Let us propel you towards a future of unprecedented success.

Core Deposit Growth Strategy: Part 2

What are the growing performance trends for Credit Unions?

growth trend credit union money

Analyzing Credit Union Performance Trends: A Decade in Review

Previously in this article series, Core Deposit Growth Strategy: Part 1, we looked back over a period of 20 plus years to learn the history of what led the financial services industry to today’s environment. Now, we’ll zoom our lens further in to the past 10 years in particular, focusing on key credit union performance trends, and how recent large-scale change in the world affects your institution’s next stage of growth.

Peer Group Analysis: How Credit Union Asset Size Influences Growth

Furthermore, for a comprehensive comparison, let’s start by breaking down credit unions into six peer groups based on asset size:

Assets < $2 million

  • Assets $2 million – $10 million
  • Assets $10 million – $50 million
  • Assets $50 million – $100 million
  • Assets $100 million – $500 million
  • Assets > $500 million

The Impact of the Great Recession and COVID-19 on Credit Union Assets

informational credit union performance trend chart made by level 5
informational credit union growth performance trend chart made by level 5

By 2013, the Great Recession was a fading memory, but its influence is still evident.

As of then, things are moving along pretty well, rates are low, and we’ve never heard of covid.

That’s our point of origin for this discussion.

Asset growth was pretty consistent through about 2018, and then the ride got bumpy. Once the pandemic is underway, we see assets in a near-vertical climb.

Also, asset growth within a peer group correlates to the asset size of the peer group, resulting in bigger institutions growing faster. 

Deposit growth trends

Of course, deposit growth was the real driver of asset growth at that time, fueled by various forms of government stimulus being pumped into the economy during COVID as well consumers playing it safe by stockpiling savings as the stock market looked like a scary place to park one’s hard-earned money.

This trend peaked in 2020, and deposit growth returned to something close to normal by 2022.

numbers to convey growth
chart displaying information about deposit growth trends

Loan growth trends

Loan growth tells a similar story with a couple of plot twists along the way. As with assets and deposits, the loan growth rates are almost perfectly correlated with asset size.

Prior to the pandemic, loan growth rates were stable (or declining a bit for the largest credit unions). The pandemic’s impact on loan growth is almost a mirror image of deposit growth. During the pandemic, consumer uncertainty and rising interest rates combined to quash loan demand.

Post-pandemic, pent-up demand and lower interest rates drove more loan demand, which continued even as rates began rising in mid-2021 (perhaps with some borrowers rushing to close loans before rates rose even higher).

chart displaying low growth trends

Loan-to-Deposit Ratio: A Key Indicator of Credit Union Performance

loan/share credit union ratio growth trend

The nature of the banking industry is a balancing act between deposit acquisition and loan dispersal. Accordingly, the loan to deposit ratio is one of the fundamental measures of any institution’s performance. The loan to deposit ratio gradually grew 2013 – 2018, and then things got interesting.

money changing hands

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Exploring Net Interest Margin Trends in the Credit Union Sector

As you know, similar to the loan to deposit ratio, net interest margin is a key metric that tracks the combined effectiveness of the institution’s deposit-gathering and loan-granting activities.

Loan and deposit rates are both set by the individual institution but are also constrained by the Federal Reserve’s activity too as competitive response. But, as you also know, loan and deposit volumes are influenced not only by pricing, but also by an institution’s strategic day-to-day and long-term performance in marketing, reputation, member service, and convenience.

With this in mind, this is a great place to reflect and ask yourself “what can my institution do next to achieve our net interest margin goals?”

informational credit union growth performance trend chart made by level 5
informational credit union growth performance trend chart made by level 5
credit union collaboration

Navigating the “New Normal”: Challenges and Strategies for Credit Unions

The takeaway from of all this is that it’s too soon to tell exactly what the “new normal” will look like, but we can certainly use our experience and assessment to confidently project:

>Higher rates will raise the cost of funds, putting the spotlight on core deposits and other low-cost deposits.

>Higher rates may also dampen loan demand, at least in the short to intermediate term (sooner or later, cars have to be replaced, families need to move, and unexpected life events happen!).

Previously, some institutions have created high performance lending teams over the low-interest rate era, but diminished loan demand in the present and near future may constitute a refocusing of your strategy.

So, what can be done?

Our next and final post in this series will examine some strategies to pursue core deposits as one way of managing the “new normal” and boosting your net interest margin.

Leveraging Technology and Strategic Planning for Credit Union Success

In this dynamic landscape, credit unions must adapt to changing member expectations and leverage technology to deliver exceptional retail bank customer experiences. Embracing data-driven retail credit union consulting and strategic planning can position your credit union to thrive in the evolving market.

At LEVEL5, we understand the unique challenges faced by credit unions and offer expert guidance in credit union strategy and planning. Our 20 years of experience as pioneers in modern bank design and retail bank consulting, enables us to deliver innovative solutions tailored to your institution’s needs.

Whether you’re exploring credit union or bank branch construction, credit union or bank branch design, or branch transformation, our national design build services ensure a seamless process from start to finish. We specialize in strategic planning for credit unions, market analysis, and designing the branch of the future.

Check out the other posts in this series

Growing Core Deposits Blog Series Part 3 ➝

Growing Core Deposits Blog Series Part 1 ➝


Contact Level5 For Help with Your Core Deposit Growth Strategy

Contact us today to learn more about how LEVEL5 can help you navigate the changing landscape of the financial industry and achieve your growth objectives. Let’s build the future together.

Branch Optimization: Choosing the Right Path for Long-Term Success

increase Growth and Profitability with curated branch network strategy

branch exterior depicting branch network strategy by Level 5

What is important in branch network strategy?

When it comes to strategically managing branch networks, financial institutions face crucial decisions about whether to keep, remodel, relocate, or close branches. These decisions can significantly impact growth and profitability over many years. While data plays a vital role in informing these choices, there are several factors to consider beyond mere numbers to ensure your resources and efforts are allocated correctly for healthy growth. 

In this article, we delve into the strategies for making the right decisions and highlight the importance of strong leadership in shaping a successful credit union or bank branch network.

The Four options

Keep: Identifying High-Performing Branches 

Identifying branches worth keeping involves a comprehensive assessment that goes beyond immediate performance. It requires evaluating various factors such as financial benchmarks, forecasts, and environmental considerations.

By examining both internal and external data, financial institutions can determine branches that not only perform well in the present but also show promising long-term potential.

Branch Remodel: Breathing New Life into Branches 

Sometimes, a branch in the right market may experience a decline in performance. Instead of closing it outright, a remodel can be a viable option.

how the remodel helps

Through incorporating new technologies, design elements, and layouts, financial institutions can rejuvenate the member experience and attract and engage more customers with a fresh and modern ambiance. An updated branch remodel design enables them to tap into the untapped potential of existing locations.

interior depicting level 5 branch network strategy

Relocate: Unlocking Potential through Strategic Moves 

Under-performing branches in suitable markets might benefit from relocation. The decision to move can arise from factors such as branch type, traffic patterns, or location restrictions.

data for relocation

Analyzing external data, including market trends and demographic information, helps financial institutions identify areas with greater growth potential.

By strategically relocating branches, they can leverage favorable conditions and improve overall branch performance.

Close: Making Tough, but Necessary Decisions

Closure is a challenging decision for any financial institution. However, there are instances where it becomes necessary to maintain the network’s performance. Branches that not only underperform but also adversely impact the entire network may require closure. Strong leaders must rely on internal and external data to make the tough call of closing branches that are no longer viable.

Work with Credit Union & Bank Growth Consulting Experts

Effective branch management involves making strategic decisions about keeping, remodeling, relocating, or closing branches. 

In the dynamic landscape of branch network management, making informed decisions is vital to maximizing your credit union’s or bank’s growth and profitability. Financial institutions need a partner that can provide expert guidance and data-driven insights to navigate the complexities of keeping, remodeling, relocating, or closing branches. 

That’s where LEVEL5 comes in. As a leading growth consultancy and best-in-class branch design and construction firm, we’ve specialized in branch transformation for over 20 years, offering actionable, comprehensive solutions tailored to the unique needs of financial institutions.

Contact us today for help making your branch network optimization a success! 

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