Collaboration for innovation
Several experiences I’ve had over the last few weeks point to the idea that CUs are perfectly poised to succeed in the future—if their leaders embrace what I’ve started to call “cooperative innovation.”
Reading Scenarios for Credit Unions 2020: Striving to Stay Relevant in a Rapidly Changing World—CUES’ new report for CUES, CUES Director and Center for Credit Union Board Excellence members—I noted that CUs’ overlapping fields of membership have sometimes limited their desire to collaborate and weakened their competitive position. However, “winning” credit unions in two of the four future scenarios outlined in the report do well, partly because they’ve “committed to collaboration.” These CUs work together or form credit union service organizations with the aim of making back-office systems and security investments more efficient.
This made me wonder how much further credit unions could get if they found ways to collaborate not only on infrastructure, but also on innovation.
Attending CUES’ Credit Union Executive Dialogue a few weeks back made me optimistic that some CUs will in fact cooperate on new ideas for the future. At the event, I watched executives from $500 million-plus credit unions first listen to great speakers and then have conversations about the ideas presented.
One speaker talked about cutting-edge innovations in payments. (To him, Square’s smartphone card swipe solution is old hat.) Another described her CU’s loans to help members who play in the local symphony buy the often-expensive instrument accessories they need.
The discussion that followed each of these sessions generated new, high-potential ideas about how to be effective fast followers in the payments arena, and make more loans by identifying specific member needs. Importantly, many business cards were exchanged, and attendees left with the names of smart, engaged people they can call on 60 days from now to discuss their credit union’s newest initiative. They’re poised to work together to innovate.
And collaboration for innovation need not be only among credit unions. Vendor partners also can play a key role. At a recent meeting about innovation hosted by CUES Supplier member MasterCard, Purchase, N.Y., the card giant’s chief innovation officer, Garry Lyons, talked about an innovation competition MasterCard is running with its staff.
It is offering a significant cash prize for the winning idea, which MasterCard will fund and implement through its innovation hub, MasterCard Labs, in Dublin, Ireland.
And here’s the key thing to note: MasterCard is looking for collaborators to take its payments ideas and run with them.
Thinking about CUES for a moment, a magazine like Credit Union Management could invite readers to download a smartphone app MasterCard’s currently developing. Using the app in conjunction with a magazine ad for CUES’ new Strategic Innovation Institute, readers could scan or photograph the ad, and be taken directly to register for the event.
Working together, so much new, neat stuff can be done. Will your credit union move from collaborating on infrastructure to collaborating for innovation? I’d like to hear about your approaches and successes.
