With some households still experiencing major financialsetbacks, credit unions may have to focus on their existing membersfirst to grow their loan programs.

Patrick McElhenie, sales planner for CUNA Mutual Group, offeredthat suggestion Tuesday during the company's third-annual OnlineDiscovery Conference.

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“Let's not forget, our members are our owners, but moreimportantly, they will do the advertising for us based on theirsatisfaction,” McElhenie said. “Quite often credit unions are alltoo timid in sharing what they can do for their members.”

During a session on translating lending trends into strategiesto fuel growth, McElhenie said members are more cautious todaybecause of the current economic environment and the financialobligations they already hold.

“We've seen major setbacks in household net worth,” McElheniesaid. “Some recovery has occurred, but households don't have theresources they once did, which we see in members' spending andborrowing habits.”

Still, while there's a lack of household demand for loansbecause people are paying down their debt and spending less, someare looking at lending differently.

“People don't 'go and get a loan' today, they see financing as aproduct feature, making point-of-purchase financing boom,”McElhenie said.

Despite economic changes and member habits, the key is to focuslending efforts on existing members first, McElhenie toldattendees. Many don't know where to begin, though, he noted, a goodplace to start is by looking for loans to rewrite for members.

“Help those who are struggling with onerous terms from otherlenders,” McElhenie said, adding to then begin looking to youngborrowers to develop the next generation to replace those babyboomers who are no longer borrowing.

McElhenie reminded credit union attendees that not everyone isin financial trouble or about to lose their job, so it's in thecredit union's best interest to help these credit union memberstake advantage of some great bargains in the home and auto market,especially young members just beginning to build a life and home.Begin a first-time borrower program, McElhenie suggested.

To grow your lending business, McElhenie said to consideradopting a “we are one” attitude at your credit union for autoloans by issuing the same rates and terms for direct and indirectloans.

“Most members will gravitate to a point-of-purchase transaction,but, remember, the goal is just to get the member's loan,”McElhenie said. “And don't forget about your community. Thecommunity is your yard, don't neglect it.”

Reward card programs that give back to the community have hadlarge success, too. McElhenie said one such example is theHutchCard, a Visa card issued through the $189 million HutchinsonCredit Union in Hutchinson, Kan. The credit union raised more than$200,000 for the Hutchinson Zoo and city parks over the 10 years ofits existence.

“You must create your own recovery,” McElhenie said “The economywill continue to move slowly forward, interest rates will remainlow and consumers cautious, but you have the tools to help yourcredit union grow. Focus on your members and community, the restwill come.”

CUNA Mutual said more than 1,800 credit union and league staffsigned on for the free Online Discovery Conference.