MADISON, Wis. (11/19/13)--To mark the 10-year anniversary of its Lender Development Program (LDP), CUNA Mutual Group has studied the average payment protection participation lift its program provided for its 61 charter credit unions. CUNA Mutual reported that they have experienced an average payment protection participation increase of 20 percentage points.
Potlatch No. 1 FCU (P1FCU), in Lewiston, Idaho, was the first credit union to serve as a pilot LDP credit union in 2003. CEO Chris Loseth recalled, "Before LDP, we'd just throw out a payment protection goal and try to figure out how to meet it. LDP brought focus to the credit union. It helped us build an understanding of how the protection products benefit our members and why they are good for the credit union."
The results the 61 charter credit unions have achieved also include:
More than $250 million in claims payments; and
An average of seven times more revenue from CUNA Mutual Group's payment protection products in 2012 compared with credit unions not on the program.
"LDP was developed on the best practices of high-performing, results-driven credit unions," said Karim Habib, director of lending, CUNA Mutual Group. "As changing needs arise, the program's multi-discipline approach continues to evolve to help enhance credit unions' financial results through deeper member relationships that uncover and meet more member needs."
According to CUNA Mutual, today more than 900 credit unions use LDP techniques and resources to increase their financial results and enhance their member experience. As a group, the 900 LDP credit unions:
Earn five-and-a-half times more revenue from CUNA Mutual Group's payment protection products than credit unions not on the program;
Experience a 19.4% increase on their entire credit insurance book of business within the first three years of the program; and
Earn 40 more basis points in fee and other income than credit unions not on the program.