Loan incentive programs that work: A well-designed program boosts loan production and builds ancillary products

Running incentive programs for loan officers can be intense. Programs need frequent updates, and credit union executives say they constantly monitor programs to make sure they continue to get results. Despite the work involved, credit union executives increasingly turn to incentive programs to increase volume in consumer and auto loans, credit cards, and other products, according to Monetary Incentives for Credit Union Staffs, a study by the Filene Research Institute and the Center for Credit Union Research in Madison, WI. Overcoming initial doubts about incentives, many credit union executives now say an effective, well-designed loan officer incentive program is a cornerstone in efforts to boost loan production and build ancillary products, says the study.