No More Binders Full of Excuses.

I recently visited a handful of credit union and community bank branches, and had an opportunity to observe some of the interaction between “visitors” and staff.  Well, actually, it was a lack of interaction I observed.  The credit union “difference” is one driven by the people of credit unions, right?

This is what I experienced:

  • When visitors entered the branches, they were seldom greeted in any way whatsoever. Dear credit union friends, shouldn’t a “member-owner” be welcomed?
  • In two instances, branches had very well defined “meet and greet” stations front and center at the branch entrance. Neither was manned, yet I stood there for over 2 minutes before someone took notice. There were 3 tellers in the branch, none with a member before them. I was pretty sure they thought I was there to rob the place, until one was bold enough to timidly ask, “Can I help you?” If you have a meet/greet station, make sure there is a warm bodied person stationed there.
  • Three of the facilities I visited had outstanding décor and furnishings. It really felt more “clubby” than “bank-like”, yet the branch was void of members. I noted the 1980 style Bank of America branch across the road. Its parking lot was packed, with people coming and going through it’s door.
  • In all the branches I visited, the most dominant merchandising focused on auto loans, with low rates clearly emphasized in the copy. But when I spoke to a representative, nobody asked me if I was car shopping or considering a vehicle purchase in the near future. In short, there was no needs analysis nor was there consistency between the marketing message and the experience.
  • In one credit union branch, CNN was playing on a very nice wide screen TV. It was right behind the teller area, indicating to me, had the branch not been empty, that I might be in for a long wait. It also took my eye off any of the branch merchandising. And the only reason I walked to the teller line is because none of the platform people looked away from the PC screens.
  • In the case of all the credit unions I visited, my eligibility for membership was quickly established. I told the representatives I would think about joining, but was not ready to commit. None asked where I currently banked and none reminded me that my family could enjoy the benefits of joining. In no case did anyone ask for my name or contact info.
  • Speaking of benefits, I asked a couple of credit union representatives what the benefit of joining was. In all cases, the focus was on rates and yields. No mention of philosophical differences between banks and credit unions, no mention of fees and no definition of ownership.

There seems to be a gap between strategy and tactics. Within the industry we speak of how credit unions are better in comparison to banks. I’m sure some of you do a good job of demonstrating this, but in my recent experience, there was no tangible differentiation presented to me. This is worrisome as new players invade the retail financial services space. Banking largely remains a commodity, and as it stands today, your branch environment is likely not doing enough to define your value proposition.

I suggest you to do your own assessment. Forget the excuses and get your leadership out of the ivory tower and visit the branches and spend some time there observing and listening. Ask your staff if they understand what makes your credit union unique. Then go and visit your competition to see how you compare. Do you walk like a duck? Don’t be a duck.

Bryan Clagett

Bryan Clagett

Bryan is on the executive team and singularly focused on driving revenue growth through a variety of new initiatives that help financial services and fintech become ever more relevant to ... Web: https://www.strategycorps.com Details