You’ve reached a number that has been disconnected or is no longer in service

Picture this, credit union peeps! You’re meeting with leaders to discuss upcoming events, issues, and strategies. Then, something pops up that sparks these conversations. But before you move forward, let me say this: The following scenarios are fictional and do not depict any actual person or event. Any resemblance to your leadership team implied or otherwise, is purely coincidental. 

Leader 1: Who in the world would use buy now pay later for groceries at Walmart? If they don’t have the money, what makes them think they will be able to pay it back, AND how do we calculate that in their debt-to-income ratio when those types of “loans” may not show up on the credit report?

Leader 2: I don’t understand why people love using apps like Venmo and CashApp. They know they’re not going to get their money back if they send the money to the wrong person or if someone hacks their account. Then they get mad with us when we let them know we can do nothing for them.

Leader 3: Why would anyone cash one of those live checks sent in the mail from finance companies with an APR of 36% or more? They really should know better than that!

Leader 4: I would never accept payment protection on my loans because I budget well, I have enough life insurance, and I have a short- and long-term disability at work, and if members did the same, they wouldn’t need it either.

All I can think of when I hear these statements is the message you get when you reach a number that has been disconnected—“We’re sorry, you’ve reached a number that has been disconnected or is no longer in service.” These statements are of leaders who are disconnected from the world—actually, let’s lessen the scope—these are statements of leaders who are disconnected from the people they pass in the halls each day and the members they serve.

As a leader, being disconnected in any industry is not good, especially in the credit union industry, where we thrive on the premise of people helping people. But how can we properly help people if we’re disconnected from the needs of the communities we serve? It’s simple—we can’t until we begin thinking outside of our privilege.

Being disconnected from members means leaders are disconnected from members’ realities, leading to missed opportunities, poor service, and reduced loyalty. To avoid disconnection, leaders should adopt a mindset of empathy, innovation, and growth—as these mindsets are crucial for navigating challenges that members face.

Empathy allows leaders to see life from a member’s perspective, which helps leaders identify members’ pain points. For the most part, leaders can already see members’ pain points through their account history because it shows trends and patterns in member behaviors. These trends can show leaders the gaps in financial education and literacy they provide to members. If there is no functional program, those trends should add a sense of urgency in leaders to develop or adopt financial education programs that benefit members. Ultimately, leaders can be more intentional with listening to members, collaborating with members, and creating and sharing relevant educational materials and counseling to meet members where they are on their financial journey.

Then there is innovation. If your credit union does not have the products, services, or technology that members currently use at the neobanks of the world—e.g., Chime, SoFi Money, Lending Club, and the list goes on—then there is still a disconnect. I know those neobanks have the capital to make things happen. Still, credit union leaders must be willing to experiment with technologies and solutions and partner with CUSOs and Fintechs to help create a streamlined and member-centric experience that helps create a competitive advantage that connects credit unions back with their members. I know what you’re thinking—yep, there are risks in these types of partnerships, but credit union leaders must ensure that each new relationship is vetted and makes sense for the credit union.

To act on the other two mindsets, leaders must have a growth mindset to stay relevant in our ever-changing world. A growth mindset is a powerful tool that enables a deeper connection with members, creating opportunities to tailor products and services that meet members’ needs and increase member loyalty. Leaders with a growth mindset move past “we’ve always done it like that” mentality to being open to new innovative ideas, technologies, and partnerships that create value for members.

As leaders adopt these mindsets, they will trickle down to all employees, which helps foster a member-centric culture where everyone is focused on creating the best experiences for all members. Now, in the meetings, we will hear the following conversations:

Leader 1: I’ve noticed that grocery stores allow members to buy now and pay later for groceries. I know members are struggling with economic issues, so let’s develop a campaign that promotes our small-dollar loans and eases the guidelines to help more members. And let’s think about partnering with CUSOs who could help empower us to reach more community members who might need those small-dollar loans.

Leader 2: We are seeing more Venmo and CashApp transactions, so we should remind members that they can transfer funds instantly from our credit union to others. But also, let’s make sure to do an email blast and a fun and informative video on all our social media platforms to show members the risks of using certain apps and how to avoid fraud while using those apps. We know they will use them, so let’s educate them!

Leader 3: One of our assistant branch managers had a member who wanted to deposit a live check that was in the mail from a finance company, and guess what? Just by having a simple consultative conversation, she better understood why the member was depositing the check and then was able to offer her a low-rate unsecured loan with the credit union; how awesome is that! Now, imagine how many other members might receive those checks, so doing another email blast and having an event at a local library where we will discuss credit and budgeting might be beneficial. We can also schedule other classes that benefit members, like estate planning, homeownership, etc. And let’s feed them and have door prizes—just a little incentive for them to come out.

Leader 4: Have you seen the email from our payment protection provider showing payment protection in action? Our employees are rocking and rolling using those action steps. These emails are why we encourage employees to remove themselves from the equation and put themselves in members’ shoes. Having those consultative conversations pays off!

As you see, when there is a shift in the mindset of leaders that includes empathy, innovation, and growth—the entire conversation changes. Now, the leaders are connected, back in service, and ready to act on people helping people.