Why credit unions can’t take member trust for granted

There’s an old saying in business, often attributed to Warren Buffett: It takes 20 years to build a reputation, and five minutes to destroy that same hard-earned reputation.

We’ll use that Buffett-ism as a jumping-off point to reflect on the fact that credit unions (CUs) have built strong reputations over decades. However, CUs — which now number roughly 5,300 in the U.S. — face pressure to step up technological advances, where inexorable movement toward digital and consumer-focused services can foster a disconnect that, left unaddressed, will turn loyalists fickle.

Consider the fact that 49 percent of members want their financial institutions (FIs) to focus on loyalty and rewards programs, yet only 29 percent of CUs said they had focused on loyalty and rewards in the past few years.

In the latest Data Drivers, PSCU CEO Charles E. (Chuck) Fagan weighed in on the sense of community CUs wield as a competitive advantage.

 

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