Numerous companies that did not adjust to the changes in their industries are no longer with us. Kodak, Borders and Blockbuster come to mind. In hindsight, the disruption to their business model was obvious, yet they did not act in time. It is human nature to be in denial when dramatic change is required, but change is often required to survive.
In contrast, Netflix changed from a DVD delivery model to an online streaming model and the company has flourished.
Will your credit union be like Netflix, ready to make the key changes needed to flourish going forward?
In the 1930s, consumers had very limited financial services choices. Back then, credit unions were the marketplace disruptors. They were located nearby, service oriented and provided reasonably priced services to common folks through a collaborative model.
Today hundreds of financial institutions and other financial service providers are just a click away. Many competitors are convenient and provide superior customer service at low cost. Credit unions’ Internet-only competitors do not have the costs of brick and mortar and extensive regulations. Through the use of big data, these competitors often know more about members than do the credit unions to which they belong. More and more members demand fintech connections and delivery systems. They want a mortgage approval in 10 minutes and a car loan within one. Can you succeed in this marketplace?continue reading »