MADISON, Wis.—There’s no question credit unions will play a strong and vital role in the financial services world in 2020, according to John Pembroke of the Credit Union Executives Society (CUES).
But credit unions will only continue that role as long as they continue to invest in one of their greatest assets: The people who keep them going.
“Continued investment in talent development will ensure credit unions have the breadth and depth in leadership to meet the evolving needs of their members and continue to be successful,” Pembroke said.
He said CUES has identified five crucial areas for credit unions to address to ensure they properly do develop and ensure talent development, as well as take actions to remain relevant to their members:
- Develop a talent pipeline. On the executive side, take immediate steps to attract and retain the next generation of credit union leaders. At the board level, identify and address diversity goals, develop a list of good board candidates before it’s needed, go beyond typical sources for board members, require the board to participate in continuing education, and consider term limits.
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Be agile and adaptable. Develop a portfolio of small-scale experiments—“little bets” that allow the credit union to stay ahead of market shifts and changing consumer needs. Then, closely monitor the environment, wait until more is learned about which way the world moves, and then either increase investment in these fragile strategies or pull the plug.
John Pembroke, CUES
- Use new approaches to speed technology adoption. Collaborate with other credit unions; it leads to innovation and cost efficiency, and helps ensure awareness of market trends and a better position to take advantage of them.
- Become entrenched in the local community. Become an indispensable to the community, understanding who is in the community and what, exactly, the community needs from the credit union. Credit unions have traditionally focused on offering lower rates and excellent customer service—which meant a friendly smile and knowing a member’s name. Both of those are certainly important and valuable, but are they what the community really wants from their credit unions—or simply what credit unions have historically given and what fits into their comfort zone?
- Advocate with regulators. It’s critical for the system to speak with one voice to capture and communicate the value of the credit union difference.
In any event, Pembroke said, credit unions will have to continually reexamine their service and delivery methods to best meet their members’ needs and desires.