Thursday, December 11, 2008

Flex Terms

Flex Term certificates are just one of those things I have takes for granted over the years prior to working for my current employer. I had set up a tiered based certificate system at my last Credit Union years ago, and since I still bank there it’s not like I have gone without the service.

It still surprises me however how many Credit Unions do not offer flex terms to their members (including my current employer – which I am hoping will resolve themselves to flex terms in a meeting this morning)

A member walks in looking to put away some money for an upcoming event. A wedding, a birthday, holiday or anything with a solid date. Say they’re having a baby and don’t need the money until 9 months from now. If you only offer a 6 month and a 12 month CD are you really offering them what they need? Or are you encouraging them to settle?

It’s not hard to offer Flex Term Certificates. You don’t even have to develop new share types. Just take your existing share types and modify your processes to prompt for the term and calc the maturity date. (In creating a demo for the presentation, I actually completed the coding for this option in our ACS workflow in under 18 minutes!)

So modify your defaults, revise your workflows, change your TISAs and rate sheets, and give your members the options not available to them today. They’ll love you for it!

1 comment:

Mary Lee said...

I just had some wicked rate change flashbacks.