C. Myblog

1 Quick Way to Link ALM and Marketing

November 14, 2018

It’s no secret that credit unions have tons of data that can be turned into actionable decision information.

There are numerous options for financial institutions to take data, apply it to marketing efforts, and help enhance ALM results.

Here is just 1:

Focusing on the source of new members and the age of new members can help shed light on near-term deposit acquisition.  In our recent work with a credit union, we saw that roughly 23% of their new members were under the age of 24.

At the same time, about 1/3 of their new members were from the indirect channel.

If you don’t know your numbers, it is easy to figure it out.

This type of information helped to set a foundation for a strategic discussion with respect to deposit acquisition.  Like many other financial institutions, this credit union is feeling a funding squeeze.

As a result of quantifying this data, they concluded that a substantial portion of their new membership would likely not be a feasible source of new, affordable, and sustainable funding.  While CDs may be an option for the indirect members, they did not want to immediately go that direction.

The management team used this decision information to discuss several options for refocusing marketing efforts to more closely align with what they believed were the short- and intermediate-term ALM needs of the credit union.

We often hear that marketing teams and ALM teams speak different languages.  But when these teams are focused on having a common language, that all understand, it results in increased value to the membership and stronger risk/return management.  Not to mention it creates capacity to explore more strategic options as they arise.

Comments
  • Megan

    Thank you for preparing this article. It is helpful to have other view points on how to look at our data for deposit growth.

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