By Frank J. Diekmann
Maybe they were sucking up to the audience—or maybe credit unions just aren’t taking the hint.
It is said to be a gift to see ourselves as others see us and last week four different, quite accomplished individuals--all of whom were to the best of my knowledge unknown to each other and were the kind of accomplished people who give TED Talks and write books and, well, are keynoters at CU events--stood in front of a 500-person audience of credit union leaders and said different versions of the same thing, but it could be summed up as, “Hey, credit unions, you've got an advantage every other business wants. Why aren’t you using it?”
The comments all came from keynoters during Co-op Solutions THINK 22 meeting in Chicago.
Here’s a sampling of what I mean:
That’s Why Credit Unions Exist
Ken Kocienda, an Apple engineer who is credited (or cursed) for having invented auto-correct on the iPhone, along with other breakthroughs, told the meeting, “Make things useful and meaningful to people. That’s what you do. That’s why credit unions exist. If we put empathy at the center and make a master molecule where all the other elements are connected, you get relevance. Empathy makes the difference for a more digital, trustworthy and relevant future.”
A Moment to Make History
Dave Logan, a professor of business at the University of Southern California and the author of several books that examine culture, observed, “I believe as an outsider--although I have consulted with many credit unions--I believe right now in 2022 it is a moment when credit unions could make history. What does that mean? I believe trust is going to move back to being a really important idea and concept. You are trusted. I believe being a member of a community is going to matter a lot more in a few years than it does now. You are starting from a place of strength. Being member-centric is going to be hard. But I believe credit unions can shape the financial industry in ways that have never been seen.”
Moments in People’s Lives
Swan Sit, who has 3.5-million followers on the social app Clubhouse (it’s 100% audio), had a very keen insight. “How do you make social work for credit unions? I think of credit unions as moments in people’s lives. Yes, products and interest rates matter, but it’s understanding the moments in people’s lives that gets them to convert. Regardless of the channel of communication, it’s about understanding people’s journeys.”
The Advantage You Have
Fred Reichheld, the creator of the internationally used Net Promoter Score (NPS), said, “Never forget as credit unions that we asked companies around the world, ‘What is the primary purpose of your business?’ Only 10% said it is to enrich the lives of their customers. Ninety-percent of businesses on earth believe their primary purpose is something else. This is the advantage you have.”
What’s Missing?
What is missing in those four different observations about the realities of the competitive landscape and winning/losing marketshare? Nary a mention of “products and services.” Everyone has those. They’re commodities. Throw whatever kind of wrapper you want around them, checking accounts and debit cards and auto loans are all pretty much the same.
Banks and thrifts and fintechs and, yes, even credit unions, all offer the same bridges, if you will. But what consumers want and need and what has them crossing the CU bridge again and again is that credit unions have a map and directions to share and members trust they’ll be led in the right way to their goals.
It’s a point Samantha Paxson, chief experience officer with Co-op Solutions, has been making for several years based on research the company has done in conjunction with EY and Filene. She shared the newest research findings during the THINK meeting.
“(Fintechs) are coming in and providing consumers with the digital solutions that they expect. This is accelerating,” said Paxson. “We can do this. We have the assets. We have the cooperation. What we also have is an incredible level of trust with your members. I believe trust is character and capability. Our members believe we will do the right thing for them. They also believe we might not have the capabilities to deliver what they expect. They trust that fintechs can meet the moment, and what that is doing is siphoning share.”
(BTW, all five of the links above connect to some pretty interesting stories, anecdotes and more if you missed our reporting the first time around.)
Are You Meeting the Moment?
So, there’s the question for you to be asking yourself: Are we meeting our members’ moments? Just as important, do your members know you can? As confident as the four speakers above were in where they see credit union advantages, Paxson also noted that fintechs have seen 500%+ growth over the last few years, and some of that is coming from CU members who migrated to the clicks from your bricks.
Moreover, in a development that can at-best be called a frustrating head-shaker for credit unions, one recent survey found PayPal to be the most “trusted” brand in financial services. PayPal! You know, the company where its customers have never met anyone who works there.
As Mr. Logan notes above, “You are starting from a place of strength.” Use it. Or someone else will. Actually, they already are.
Frank J. Diekmann is Cooperator in Chief of CUToday.info and can be reached at Frank@CUToday.info. Mr. Diekmann is also author of several new book, including the brand new “The Last Lyric,” a humorous satire about a murder investigation at the Rock & Roll Hall of Fame in which every line of dialogue is either a classic pop/rock song title or lyric. Available on Amazon, Apple iBook, Barnes & Noble and Smashwords. Mr. Diekmann is also author of a non-fiction compilation of the very best & worst he has seen and heard in covering more than 500 CU meetings and conferences, “501 Name Tags: How Everything You Need to Know About Business Can Be Learned at a Conference & Forgotten in the Trade Show.” It is available on Amazon, Barnes & Noble, Apple, Lulu, and Smashwords.