Which of the following can lead to income generation for credit unions?

Improving member financial literacy is an important factor that can lead to increased income generation for credit unions. When members are better equipped with financial knowledge, they are more likely to make informed decisions regarding their financial products and services. This can result in a higher demand for various credit union offerings, such as loans, mortgages, and investment products.

As members understand the importance of budgeting, saving, and investing, they may be more inclined to take advantage of the longer-term financial services provided by credit unions, which increases transaction volumes and, in turn, generates more revenue for the institution. Furthermore, financially literate members are often more engaged, leading to increased loyalty and retention, which can further boost income through ongoing service use and cross-selling of products.

The other choices, while potentially beneficial in some contexts, do not directly relate to income generation in the same way. For instance, more aggressive marketing tactics can increase visibility but may not necessarily translate to sustainable income. Reducing interest rates might attract more borrowers temporarily, but it could also reduce overall income if the spreads between what is earned and what is paid diminish significantly. Offering fewer products typically limits options for members, which can hinder revenue opportunities instead of enhancing them.