An Idea Made Better

By Michael E. Fryzel, NCUA Board Member

A legendary clothier in Chicago by the name of Sy Syms coined a slogan that he used in all his commercials and was part of his business philosophy. Mr. Syms believed, and proudly stated: “An educated consumer is our best customer.”

Mr. Syms’ idea was to provide as much information to the consumers about the products being sold and the prices he charged. He felt that if consumers knew the value they received for what was spent, they would be better satisfied and become repeat customers. It was good for the customer and for the business Mr. Syms operated.

His words of wisdom were true when he said them, and they are true today. Wouldn’t an educated credit union member make an even better customer? Wouldn’t someone who knows what services are best for the customer take greater advantage of what is offered?

I believe that the more credit union members know about finance—how to save, when to borrow, how to invest, how different types of mortgages and home equity loans work, and how to budget—the more likely it will result in them being better members and more active in their credit unions.

The key to achievement for your credit union is the same success Mr. Syms saw in his store. Educate your members. Make financial literacy an integral part of your game plan now and in the future.

The plan is simple and the work will be worth the effort. But you must make the effort. You must find the best way to educate your members.

Credit union CEOs often complain that when they schedule educational sessions for members, no one shows up. I am sure that happens. But with today’s demand on an individual’s time, it is sometimes hard for people to get to and attend such classes.

However, you cannot let that stand in your way. You must think creatively and find ways to overcome such obstacles.

Some thoughts include:

  • Scheduling sessions both during the day and evening to accommodate work schedules.
  • Holding sessions at the credit union’s main office as well as its branches.
  • Providing day care during the session.
  • Offering 15-minute DVDs on basic financial skills for members to take home.
  • Going to elementary and high schools on a regular basis to speak and educate young people.
  • Going to church groups, community centers and yes, even to senior centers because no matter your age, you are never too old to learn.
  • Offering your members a chance to win gift cards or small prizes for attending.
  • Advertising the sessions online, in the credit union’s facilities and through direct mail.

I don’t have all the answers as to how to do it. The credit union industry is full of creative, outside-the-box thinkers with great ideas and suggestions. I urge them to share their ideas with others, and I look to the national trade associations to provide information and resources to help credit unions.

Mr. Syms’ idea is a good one. Credit unions need to run with it and make it even better.

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Educate your members. Make financial literacy an integral part of your game plan now and in the future.

 

This article originally appeared in the NCUA’s January newsletter
Michael Fryzel

Michael Fryzel

Michael Fryzel is the former Chairman of the National Credit Union Administration and is now a financial services consultant and government affairs attorney in Chicago. He can be reached at ... Details