By John A. Vardallas, CAE, CUDE
2013 is the year of the snake. The snake is smart, coy and clever, but it is also ready to strike at any time, leaving those around it with the sense it will always be guarded.
Many aspects of the current American economic landscape have caused many of us to shift to a sense of "guarded optimism." The credit union movement has always faced challenging times. However the times we are facing can be considered critical for the future growth and survival of our credit unions and the millions of members who have entrusted us as their guardian financial stewards.
There is mixed good news these days.
Regulation is getting tighter and more uncertain. Overall net membership growth is increasing. Net interest margins and operating expenses are improving. CEO and board leadership is stable. Inflation is flat, interest rates are at historic low levels and the housing market is recovering. However a high percentage of young adults are not aware they can join a credit union.
This is the year to strike while the time is right since the credit union movement is still feeling the positive affects of Bank Transfer Day. I would offer these 13 in (20)13 suggestions for setting a course to not just survive but thrive:
1. Work the backyard. Focus on deepening relationships (more wallet share) with your current members. Get close and really get to know your members.
2. Review your fee structures for market adjustments. I am not suggesting we gouge our members, only that we alter fees based on the local marketplace. We still will be the best deal in town.
3. Have a collaboration, partnership, alliance and merger policy/strategy.
4. Train staff to cross serve/sell and wow members at every touch point 7x24x365. All staff and volunteers should be advocates for your credit union.
5. Reconnect with current and new members by offering incentives--such as coupons, miles, rewards, prepaid cards and cash back)--and empowering them to connect. Give members real reasons for being a member, not just a customer. Membership should have its privileges. Offer a certificate of member-ownership and a toll-free member care number.
6. Have a strategy to reach out to serve new Americans and the underserved. We are at the point now for action in really reaching out to consumers in our communities and bringing them into our credit union family.
7. Embrace mobile/tablet technology and social media. Utilize innovative ideas to create "apps for this and that" and do not fear Facebook!
8. Offer tax/legal (wills), end-of-life (burial), and lifestyle loans. Look for non-traditional services that your members could really benefit from using.
9. Reach out to Boomers and women via small business services and health savings accounts.
10. Consider starting a CUSO to offer insurance/travel/HR/IT/data processing products and services.
11. Stop asking Gen Y why they do what they do. Make it a strategic imperative to appeal to and attract more young adults to your membership. The under-30 demographic is your next generation of lending business and lifelong members for your credit union.
12. Focus more on non-interest income debit cards, gap coverage, credit protection, investments and brokerage services.
13. Get the right staff in the right seats on your CU bus to serve members effectively.
The credit union movement in the United States is now over 100 years old, and is in a mature stage of development. If we are not only to survive in the future but thrive, we will have to develop a different strategic mindset about growth. Leaders will have to strategically think outside the box more, and innovate and execute faster and at a greater level than the competition. Credit unions will need to fine tune, hone and focus energies on clearly defined goals and with a commitment to achieve them.
John A. Vardallas CEO/founder of The American Boomer Group, Madison, Wis., is a professional speaker and strategic planning facilitator to the credit union system.
You may also be interested in reading "Growing Credit Union Revenue Streams."
