The season for strategic planning is upon us, and it can be looked upon as a process that should guide your credit union toward your desired future—or it can be an exercise in futility that drains valuable resources, time, and efforts.
Leaders should be reading the economic and financial environment tea leaves to synthesize trends into strategic organizational directions for the credit union. And one key component of quality strategic planning by leadership is to focus on identifying and leveraging your credit union’s key competitive advantages for future growth. In my 30 years of facilitating credit union planning sessions, I don’t hear this discussion enough—what are our keys to sustaining and growing our credit union for the future?
I encourage more strategic discussion and focus on your credit union’s core, the reason for existing—the credit union philosophy in action of “people helping people” and making a difference.
With the emphasis on “it’s not what we do—but why we do it”!
This captures the core philosophy of credit unions: prioritizing passion and people over profits. While we offer the same services as banks (the “what”), our defining feature is our mission to serve the financial well-being of our members and communities (the "why”).
This mission-driven philosophy is our key competitive advantage in the financial services marketplace and should be emphasized in every action initiative your credit union undertakes with your members and community. We need to keep telling our unique CU Difference story on a continuous basis—all the time in the places we serve.
Our credit union’s core values in practice look like:
Service, not profit
As a not-for-profit financial cooperative, credit unions return earnings to our members in the form of lower loan rates, higher savings rates, and fewer fees. In contrast, banks, as for-profit businesses, distribute earnings to shareholders.
Democratic member control
Unlike banks, where only shareholders have a say, our credit unions are governed by volunteer boards of directors selected by and from the membership. Our democratic structure ensures the credit union remains accountable to our members.
Personalized/compassionate service
Because our credit unions are focused on our members’ financial success rather than increasing profits, our staff are more likely to offer unbiased financial guidance tailored to a member’s specific financial needs.
This member-centric approach ensures decisions are made in the best interest of our members.
Empowering the underserved
Our credit unions were founded over 100 years ago on the “people helping people” principle and flourished during the Great Depression to provide financial services to those overlooked by commercial banks. Today, our tradition continues with initiatives for financial inclusion, such as offering affordable loans to low-income and underserved communities.
Commitment to community
Credit unions are deeply rooted in their local communities, and our longevity is a testament to our success. Credit unions often engage in partnerships, financial education/counseling, and charitable work to support the places our members live and work. In addition, credit unions go over the top in engaging in socially responsible causes at the local, state, national, and international levels that exemplify the credit union difference.
This is our ultimate “why” we do what we do—the pursuit of our members and our communities.
Knowing and weaving your credit union’s key core competitive advantages into your future strategic initiatives will help you properly develop products and services for new and current members—to position your credit union for prospering in the future financial services marketplace.
So go ahead and get MAD—"Make a difference!"
Take advantage of this year's International Credit Union Day/Week October 13-18 to promote The Credit Union Difference locally.
