The value of the data…is in the eyes of the beholder

Dennis Keopke, Vice President

My Analytical Side

Denny Koepke, Vice President

Last week when developing a spreadsheet of the penetration of member business across age segments, I determined the value in comparing shifts and changes in key age groups.

For several clients, we track and report on the deposit and loan dollars associated with age segments. In discussions about the dominance of age groups in deposits and loans, the CEO asked how the funds might be clustered in the products for these age groups.

One question usually leads to several more. I kept digging deeper and below is a little of what I found.

For perspective, this credit union is $220 million in assets and over 25,000 members.

For deposits, the 65 and over age group is 12.1% of Members holding over 49% of the deposit dollars. With almost half of all of the credit union’s deposits, this small group holds:

  • 43% of Share dollars
  • 34% of Checking dollars
  • 52% of Money Market dollars
  • 65% of Regular Certificate dollars
  • 49% of IRA dollars

The 45-54 age group has the most impact in terms of loans. That segment is 18.4% of all Members with 31% of all loan dollars. So almost one-third of the credit union’s loan dollars are held in this group with the impact on the loan portfolio of:

  • 22% of Vehicle loan dollars
  • 28% Motor Sport loan dollars
  • 25% of Other Secured loan dollars
  • 30% of Credit Card dollars
  • 37% of Home Equity dollars
  • 30% of Mortgage dollars

This analysis takes time to review and digest. It begs the question, what do you know about your members and their relationship with your organization?

As the economy stumbles along, these data points validate the need to have our clients keep marketing messages in front of these important members to retain them and get their word of mouth selling the credit union to their spheres of influence!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.