Do Credit Unions Have an Awareness or Relevance Crisis?
I’ve heard my fair share of conference speakers and consultants outline ways to address our credit union “awareness crisis”. Heck, I’m one of them. But while it is obvious that we have awareness challenges, that is really not the issue.
The real issue facing the credit union movement is not awareness, its relevance.
If you look back over our storied history, you can see that the older the consumer, the more aware they are of what a credit union is.
Why is that?
It is because the members who are 65 years or older needed the credit union in a different way than they do today. We were the only place they could turn for loans and financial services. Meeting their unmet need created relevance with them. And as a result, the relevance created awareness.
Filene Research echoed this idea in a recent white paper:
“Americans’ rising prosperity, coupled with traditional banks’ exclusive focus on corporations and the wealthy, led to the emergence of American credit unions focused on serving the underserved…Today’s credit unions, then, grew by addressing an unmet need: providing financial services to previously underserved working Americans.”
Further evidence of this can be found in the different generational member testimonials that you hear:
- Younger members—young members often state that “my credit union has great rates and good service.”
- Older members—but with older members, you hear a very different message: “My credit union helped me out when nobody else would.”
Is it possible that this second message reflects a deeper relevance that the credit union played in the life of that member?
I believe this is the reason we grew. We met the unmet member need. But now, a few generations removed, we are just one of many options available in the financial services industry willing to help consumers. Banks, Walmart, payday lenders and even Costco and insurance companies are lined up, willing and ready.
Those previously underserved working Americans Filene Research mentioned above, well, they’re no longer underserved in the same way that they were.
Considering this, are we meeting consumer needs in a noticeably different way than community banks are?
If not, how can we?
We must remember to keep the member at the center of every decision we make. But more than that, we have to listen to them as well.
If we continue to ask ourselves and our members how we can meet their unmet need, I’m confident that the consumer awareness we’re after will follow close behind.
Josh Allison is the founder and Chief Ideator for Think Café, a CU consulting company committed to authenticity and relevance. He is a passionate public speaker and has been invited to present on a number of topics related to youth outreach, relationship management and cu philosophy. His youth and business development programs have garnered national awards and recognitions, and he has been cited in the CU Times and multiple cu blogs for his innovation and ideas. www.joshaallison.blogspot.com
