PALM DESERT, Calif.–Credit unions shouldn’t be wondering whether their members are willing to conduct financial transactions with different types of brands, according to one person. It’s a fact—they already are.
The kinds of brands with which members are now comfortable conducting financial transactions include Robinhood, GPay, acorns, Coinbase, Venmo and Starbucks, pointed out John Janclaes, president of Nymbus CUSO, in remarks to the California and Nevada Leagues’ REACH Conference here.
“I think there is something important to pay attention to here, and that is the word brand,” he told the meeting. “Thinking like a brand is the key to winning the business. My favorite brand on that list is Starbucks. I can order my drink while going through TSA, I can pick up my (coffee) and then I’m ready to go. Think about how elegant that experience is. That’s what we’re up against.”
How COVID Changed Things
It's important to recognize just how the pandemic has changed financial services, which he said had been looking “pretty good” right up until COVID.
“Now, fintechs are solving problems that banks could solve if they thought more like a brand. Fintechs have stepped into this trusted brand role,” he said. “In order to launch brands, we need to move to a new way of working. The problem is the current state (of the credit union) takes all of your resources and time to run the credit union.”
Further complicating the challenge to CU leaders, he said, is that credit unions are in “vendor lock” for years into the future, making it very difficult to take on and develop new solutions.
But there is an alternative, he said, one that is represented by his own CUSO, and that is the “greenfield approach.”
Different Mindset
Janclaes explained that Nymbus, which provides mobile banking and other solutions, can run parallel with the existing structure, allowing a credit union to stand up a greenfield brand.
“Ecosystems require a different leadership vision, management mindset and technology infrastructure to stay close to members and work with the best partners,” he said. “They must constantly adapt to changing conditions to keep delivering what the customer values and require openness and collaboration with other participants. This isn’t 10 years out. It’s there. It’s totally doable.”