By Ray Birch
TAMPA, Fla.—Credit unions are moving quickly in what has become a fast-paced financial services world, but Trellance suggests the industry might be better served by slowing down—a little—with CU leaders further advised to try to join their own credit unions sometime.
The reason, according to Trellance VP of Sales Stef Luck, is the pressure to make short-term decisions can get in the way of long-term planning and long-term success.
“Over the last few years we've all needed to react,” said Luck. “React being the key word, right? We’re reacting at such a rapid pace to keep up with member expectations that are changing with all the industry disruption we're experiencing.”
But Luck said she is seeing a concerning result from that.
“I've noticed a side effect from being in this reactive mode is that we're tackling the urgent and important stuff,” she explained. “But these tend to be the ad hoc initiatives, or the one-off projects that solve for today’s immediate needs. But these decisions may not necessarily be the best long-term solutions.”
As CUToday.info has extensively reported, credit unions, their vendor partners, their members and even regulators already know all about the “new normal” that has changed everything about how credit unions plan to meet member needs moving forward. This CUToday.info series looks at how credit unions are approaching their planning for 2023 and beyond.
Luck recommends every credit union decision-maker take the time to pause from the day-to day to and look a little further down the road.
A Recommendation
“What I've recommended that credit unions do when they're facing planning over the next couple of years is really make sure they have a clearly defined vision—and this will be an unpopular opinion—but even pause and slow down. Take a step back and focus on the basics of the credit union industry,” Luck said. “It's safe to say we're all here to serve members and provide an exceptional experience. But how do we know if we're doing that, and doing it well, when we're rapidly evolving and changing. We need to take that pause to make sure that we're delivering on what we think we are delivering.”
To best accomplish that, Luck recommends credit unions do what she did 14 years ago when she started within the industry.
Stef Luck
“Really put yourself in the shoes of a member,” she said. “I'd invite anyone reading this to really see what it's like to be a member, or a potential member, of their credit union. What I mean by that is to go out on your website, start a loan application, start a membership application. Really go through that member journey and see what it's really like. See, see what you run into. Is the process clear? Is it simple? Is it fast?”
Question Often Avoided
Luck asserted that credit unions execs usually don’t ask themselves those questions, preferring instead to turn to member feedback and just employees’ daily experiences.
“Also, the processes that we go through as employees of a credit union are often a little bit different than what our members might actually experience,” she said. “I'd recommend doing that as a very first step, or even have a friend do it. Watch them, see where they struggle, or where something is unclear, and then identify the gaps to better align with what you desire.”
Luck emphasized what many analysts have stated about credit union service, that there are friction points within digital processes that slow down members or even lead to abandonment—and those friction points can be created by the CU moving too fast to implement a new digital solution.
Some within credit unions have also said that issue is one of the key reasons consumers’ perception of credit union service has slipped below banks for four consecutive years in the American Consumer Satisfaction Index study.
“You've got to make sure you have a sleek online application and easy ways for members to connect with you,” Luck said. “So, really focus on those gaps, the ones especially that overlay with your target membership, and then lay out a roadmap of how you plan to address them.”
Hard to Accept, But…
Luck reiterated that her message may be a little hard for some to accept.
“As credit unions feel the need to speed up as they react to financial services disruption, they must also slow down to identify where issues exist,” she said. “Instead of saying how do we make it work today, referring to what we currently have in place, sometimes the question should be, ‘Is this the best long-term strategy that can be a foundation for what we do in the future?’”