Is your credit union ready for growth?

The Credit Union Expansion Project (CUEP) and previous projects as well as recent jestising of payday loan companies have all helped growth in the credit union sector. But are credit unions ready for this growth?

The recent PRA report on credit union growth since 2004 shows great progress has been made. But rapid expansion has numerous pitfalls and rewards. So how do you ensure it is managed effectively and efficiently?

• Budget for it - Ensure there are strong budgeting processes in place both short and longer term.
• Have a business plan that is regularly reviewed and have goals and milestones to reach for during the period of growth. 
• Design systems to monitor ratios and the impact on the growth. This needs to include both financial and non-financial measures. 
• Marketing – A crucial area to obtain the growth. Why would members join the credit union? What can the credit union do for them? What positive messages will your marketing material send? 
• Identify key growth dates for fluctuating growth. Plan ahead to ensure there is enough resource in areas to manage any influx of new members, loans and shares. 
• Use technology to help with the growth and ensure this is identified pro-actively rather than re-actively before the growth occurs. Will the current system allow the expansion? Is a cloud technology appropriate? Do you have the resource to cover the online loan processes? The budgeting process will also help here to show when funds are available to purchase the technology.
• Review the policies and procedures in terms of loans and shares. Don’t allow pressure on growth targets to overrule strict lending policies.
• Educate members in terms of financial management rather than overruling loan policies. This is a critical area as education acts as a means of PR for retention of members. Turning down loans is not the end.
• Seek help from experts in IT, legal and professional areas, including external consultants. 
• Review the current structure and expansion space within the premises. Ask yourself - is this big enough to cope with the extra growth and resource?