Beyond the Bottom Line: Unlocking the hidden value of investment platforms for credit unions
By Mart Vos, CEO, Eko
February 5, 2025
In the pursuit of financial strength and sustainability, credit unions must adopt a holistic approach to revenue generation. While direct revenue sources like loan interest and fees are essential, it's equally important to recognize the strategic value of indirect revenue streams and their impact on long-term growth.
Indirect revenue streams are the less obvious, yet significant. They may not appear directly on the balance sheet, but they play a critical role in enhancing member relationships, driving engagement, and fostering loyalty – all of which ultimately contribute to a stronger bottom line and create new opportunities for direct revenue generation.
The Power of Integrated Investment Platforms
Integrated investment platforms are a prime example of how credit unions can unlock both direct and indirect revenue. By seamlessly integrating investment services into their existing digital banking platforms, credit unions create a ripple effect of positive outcomes.
Direct Benefits:
- Non-Interest Income: Investment platforms can generate direct revenue through a revenue share model, diversifying income streams and contributing to the credit union's bottom line.
Indirect Benefits:
- Enhanced Member Engagement and Stickiness: Investment platforms transform digital banking channels into vibrant hubs of financial activity. Members who actively manage their investments through the platform tend to log in 4x as frequently, and thus explore other financial products and services, and engage more deeply with the credit union. In addition, this increased engagement also significantly increases the likeliness of the credit union becoming a member’s Primary Financial Institution.
- Improved Member Loyalty: By offering a comprehensive suite of financial services, including investments, credit unions become a one-stop shop for their members' financial needs. This holistic approach fosters deeper relationships, strengthens member loyalty, and increases the lifetime value of each member. Loyal members are more likely to recommend the credit union to others, contributing to organic growth and expansion.
Looking Ahead
As the financial landscape continues to evolve, credit unions that recognize and cultivate both direct and indirect revenue streams will be well-positioned for long-term success. By embracing innovative solutions like integrated investment platforms, credit unions can strengthen member relationships, enhance engagement, and drive sustainable growth.
Eko: Democratizing Investing for Credit Unions
Eko is the leading provider of integrated investment solutions designed specifically for credit unions. Our platform empowers credit unions to offer a modern, user-friendly investing experience that meets their members' diverse needs, all within their existing digital banking platform, as a white-label product.
With Eko, credit unions can make investing accessible to everyone, starting from $10. This way, Eko enhances the member experience, drives deeper engagement, and unlock new revenue streams – contributing to their financial strength and sustainability.
Eko is dedicated to democratizing access to wealth-building opportunities, helping credit unions extend their reach and empower all their members to achieve their financial goals.
Connect with Eko to learn more.
About Eko
Eko enables credit unions to offer digital investing to all their members, and not just the wealthiest 1%. Eko’s white-label platform natively integrates into your existing online and mobile banking, allowing your members to access investments without ever leaving their trusted online banking platform. Eko offers four distinct investment options where members can start investing with as little as $10.