byED BRETT
The2012 Credit Union Watercooler Symposiumin Nashville, Tennessee left me thinking about the future of credit unions. That future will be defined by two parallel tracks: the future of consumer banking and the future of cooperative banking ideals, and the effectiveness with which the two are integrated.
In the age of social media and high mobility the future of consumer banking seems ready to be defined by the consumer, not banks. At CUWCS 2012 the American Bankers Association’s Keith Leggett made opening remarks to the effect that the reason he doesn’t bank at a credit union is because we've never given him a compelling reason to do so. This is fair comment, even from an ABA guy. Two years ago at CUWCS 2010 I heard something similar from a young vendor: he liked credit unions (“Y’all are so nice!”) but in the end he just wanted a chequing account and an ATM card. This is banking reduced to utility. Good brands and healthy organizations defy this reduction and create emotional resonance, even in the face of commoditization. We need to find ways to add value back into a banking relationship. What does a more “compelling reason” look like? How do we leverage “nice”?
Our size should give credit unions an advantage here. As small brands we have an opportunity to get close to our members in ways that may be difficult for large brands. By investing in and acting upon our own understanding – business intelligence programs, voice-of-the-customer initiatives, empathetic employees with good listening skills – credit unions can understand exactly what banking consumers need and respond with agility to what we hear. Credit unions can be better bankers than the banks. Let the banks worry about providing value to their shareholders; credit unions can spend their energy on providing value to our members.
