Before diving into strategy to increase membership at your credit union, let’s take a look at the headwinds facing credit unions.
The Challenge of Credit Union Membership Growth
Credit unions offer personalized service, lower fees, and strong community ties—yet many struggle with attracting new members in a highly competitive financial landscape. With banking giants and fintech startups gaining market share, how can credit unions stand out and increase membership?
According to the Credit Union National Association (CUNA), credit unions gained 4.3 million new members in 2023, driven largely by digital marketing and community engagement (CUNA Report). Let’s explore actionable strategies to help your credit union attract and retain more members.
1. Optimize Digital Marketing for Member Acquisition
📲 Enhance Website & Mobile Experience
A seamless online experience is essential for attracting younger, tech-savvy members.
✅ Essential Features:
- Mobile-friendly website & app
- Easy online account opening & loan applications
- AI-powered chatbots for 24/7 support
💡 Example: Marine Credit Union in the Midwest saw a 25% increase in membership applications after revamping its website and streamlining the digital onboarding process.
Digital channels are becoming more important for credit unions and is the first strategy for to increase membership growth. Enhancing your digital offerings is important for all members and especially younger members. Having a better digital experience does not preclude your credit union from leaning into the relationship and community benefits that credit unions offer.
🎯 Leverage Paid Digital Advertising
Strategic Google Ads, Facebook, and Instagram campaigns help credit unions reach potential members where they spend their time online. This strategy for increasing membership is a straightforward one, but one that requires credit unions get targeted and utilize data in order to have success. Depending on your credit union’s charter, there are opportunities to segment your ad targeting in order to bring on valuable new members.
📌 Best Practices:
- Use geo-targeted ads to attract local members
- Promote referral bonuses and special promotions
- A/B test ad copy to maximize performance
💡 Example: Travis Credit Union in California launched a Facebook lead generation campaign, resulting in a 20% boost in new checking accounts within three months (Armanino).
2. Strengthen Community Engagement
🏡 Host Financial Education Events
Building trust starts with providing value to your local community. Hosting financial literacy workshops attracts potential members while demonstrating your commitment to financial well-being. The best financial literacy workshops are the most fun ones. Folks want to learn and be engaged so creating events that excite your community is a key unlock to driving higher attendance, engagement, and ultimately new member conversion.
✅ Ideas:
- First-time homebuyer seminars
- Credit score improvement workshops
- Student financial wellness programs
💡 Example: MIDFLORIDA Credit Union partnered with local schools to offer free financial literacy classes, resulting in a 15% increase in student checking account sign-ups.
🤝 Build Local Business Partnerships
Forming partnerships with local businesses and organizations helps credit unions expand their reach. The key to building your community network is to be engaged in the community. Local businesses, affinity groups, and non profits are always in search of support. By partnering with these existing groups, you help serve their community while also getting to tap into a new group. This simple strategy for community engagement will help increase new membership growth at your credit union and ensure you reach new audiences on their terms.
📌 Tactics:
- Offer employee banking benefits for partner companies
- Provide co-branded financial education materials
- Sponsor local events and charities
💡 Example: NavyArmy Community Credit Union in Texas achieved a 498% membership growth over eight years by forging strong community partnerships and local outreach efforts (MDR Advertising).
3. Implement Referral & Loyalty Programs
🎁 Reward Members for Referrals
Word-of-mouth marketing is one of the most effective ways to grow a credit union’s membership base. The question is how do you increase word of mouth? First, you have to ensure you provide an exceptional experience for your members. Find out who your most engaged members are and spend time understanding how you can empower them to spread the word.
What is it they love about your credit union? Once you’ve identified the key 1-3 things your most engaged members love, you can move onto referral programs and incentives to encourage and reward them for spreading the word.
✅ Ideas for Referral Incentives:
- Cash rewards for successful referrals
- Discounts on loan interest rates
- Bonus savings account interest for referrals
💡 Example: Addition Financial Credit Union in Florida saw a 30% increase in new members after launching a referral program that rewarded members with $50 per successful referral.
🎯 Gamify Engagement to Drive Loyalty
Offering incentives based on engagement helps retain existing members while attracting new ones. We all love games. We love that dopamine hit that comes with leveling up or earning rewards. Gamification is a great tool to drive deeper engagement and ultimately earn opportunities to grow with your existing members and new members in their network.
📌 Tactics:
- Points-based rewards for using financial products
- Exclusive perks for long-term members
- Monthly challenges with prize incentives
4. Target Younger Audiences With Tailored Offerings
📚 Develop Student & Young Professional Programs
Attracting younger members is key to long-term growth. Credit unions should offer customized products to meet their financial needs. The truth is most young folks flock to many digital tools that do one or two things that matter to them right now. Think back to when you were starting out as a young adult.
What would have been beneficial to you and motivated you?
Simple things like food based rewards programs, food delivery credits, and Netflix/Hulu/Fubo/Spotify subscriptions are important in young people’s lives. With that knowledge you can create offerings that cater to those individuals without having to re-engineer your products.
✅ Popular Offerings:
- Low-interest student loans
- First-time car buyer programs
- High-yield savings accounts for young professionals
💡 Example: Suncoast Credit Union in Florida partnered with local universities to provide free financial coaching, leading to a significant increase in student memberships.
📱 Engage on Social Media & Influencer Marketing
Credit unions should be where younger audiences spend their time—on social media. Having a presence is extremely important and often Instagram is the first place young people look to gather information on a business.
📌 Best Practices:
- Partner with local influencers to promote financial literacy
- Run Instagram & TikTok challenges around saving money
- Share member success stories to build trust
Conclusion: Growing Membership in a Competitive Market
Credit unions can increase membership and stand out by leveraging a combination of digital marketing, community engagement, referral programs, and youth-focused initiatives. Understanding why your most engaged members love your credit union and finding ways to double down on your strengths is an effective strategy to grow your membership base. Additionally, finding unique ways to cater to potential new members is crucial. By implementing these strategies, your credit union can attract, engage, and retain a loyal member base.
The key to sustained growth is adapting to modern trends while staying true to the community-focused mission of credit unions. Ready to grow your membership? 🚀
