Nm Federal Credit Union Case Analysis
SWOT Analysis for a NM Federal Credit Union
Credit unions in New Mexico are holding nearly $8 billion in assets. The top three New Mexico credit unions loaned more than $2.1 billion in 2012. A NM Federal Credit Union the third smallest CU in the metro area, operates two locations in Albuquerque and one location in Farmington, NM. The credit union has total assets of $53,598,091.00 as of 11/2013. The following analysis of A NMFCUis prepared to highlight the competitive market in which the credit union operates.
Strengths
A NMFCU has firmly entrenched itself in the New Mexico Financial services market enjoying local leadership and a 79 year history in NM. Within the structure of the CU exists ethnic and gender diversity among volunteer …show more content…
Weaknesses
According to the 2010 U.S. Census Bureau, there are more than 95,000 bank locations compared to more than 7,000 credit union locations in the country. Due to numerous mergers, as well as the growing popularity of mobile and online banking, the number of physical branches is rapidly declining. Unlike banks, according to The Financial Brand Credit Union Industry Outlook, the total number of credit union branches has grown – increasing from 20,694 in 2007 to 21,433 in 2011 – with only the largest credit unions adding branches. A NMFCU has only two locations in Albuquerque and one in Farmington. Collectively A NMFCU has the third fewest number of CU members in New Mexico. Additional weaknesses include:
Social media presence is entirely under-utilized.
Rates not as competitive vs. other NM CU’s for a number of loan types.
Average NMFCU member is 52 years old vs. national average of 46.
Website does not compel me to stay there and explore.
No Federal Bail-out money during economic downturns.
New members must come aboard via SEG (Select employer groups).
Limited advertising budget
Limited collaboration with auto dealerships, builders …show more content…
A student loan option should be created (despite high default rates) to further attract youth.
Establish a youth council
Incentivize teen membership:
Offer rewards for grades, community service, excellent driving record etc. partner with some of the large teen employers like Dion’s. A simple brochure or forms at the location could make it easy to open an account and do direct deposit.
Expand growth in service reach to underserved areas of New Mexico (i.e. Farmington branch).
Plan a large scale celebration of 80 year anniversary in NM. (Founded in 1935!)
Expand strategic partnerships (such as: NM Animal Friends, Bike ABQ etc.) and
Credit unions in New Mexico are holding nearly $8 billion in assets. The top three New Mexico credit unions loaned more than $2.1 billion in 2012. A NM Federal Credit Union the third smallest CU in the metro area, operates two locations in Albuquerque and one location in Farmington, NM. The credit union has total assets of $53,598,091.00 as of 11/2013. The following analysis of A NMFCUis prepared to highlight the competitive market in which the credit union operates.
Strengths
A NMFCU has firmly entrenched itself in the New Mexico Financial services market enjoying local leadership and a 79 year history in NM. Within the structure of the CU exists ethnic and gender diversity among volunteer …show more content…
Weaknesses
According to the 2010 U.S. Census Bureau, there are more than 95,000 bank locations compared to more than 7,000 credit union locations in the country. Due to numerous mergers, as well as the growing popularity of mobile and online banking, the number of physical branches is rapidly declining. Unlike banks, according to The Financial Brand Credit Union Industry Outlook, the total number of credit union branches has grown – increasing from 20,694 in 2007 to 21,433 in 2011 – with only the largest credit unions adding branches. A NMFCU has only two locations in Albuquerque and one in Farmington. Collectively A NMFCU has the third fewest number of CU members in New Mexico. Additional weaknesses include:
Social media presence is entirely under-utilized.
Rates not as competitive vs. other NM CU’s for a number of loan types.
Average NMFCU member is 52 years old vs. national average of 46.
Website does not compel me to stay there and explore.
No Federal Bail-out money during economic downturns.
New members must come aboard via SEG (Select employer groups).
Limited advertising budget
Limited collaboration with auto dealerships, builders …show more content…
A student loan option should be created (despite high default rates) to further attract youth.
Establish a youth council
Incentivize teen membership:
Offer rewards for grades, community service, excellent driving record etc. partner with some of the large teen employers like Dion’s. A simple brochure or forms at the location could make it easy to open an account and do direct deposit.
Expand growth in service reach to underserved areas of New Mexico (i.e. Farmington branch).
Plan a large scale celebration of 80 year anniversary in NM. (Founded in 1935!)
Expand strategic partnerships (such as: NM Animal Friends, Bike ABQ etc.) and