By Frank J. Diekmann
A hodge podge of news items and other tidbits I found while packing away my International CU Day party paraphernalia.
No Thanks for Staying in Touch
The wave of mortgage refinancings is no secret to any lender. Thanks to the Fed’s new mantra of “How low can we go?” borrowers have been rushing to file applications, leaving credit unions in many cases to post nicely worded messages on their websites that basically boil down to “Grab a number and take a seat.”
First a little bit on what a new study from Credible has found. “Homeowners who succeeded in refinancing were also more likely to visit individual lender websites, and to contact a mortgage broker or loan officer,” Credible said. “Those who did not succeed in refinancing were more likely to check with their existing lender compared to those who were able to refinance.”
As CUToday.info reported, that same Credible research found just over half of those applying to refinance are actually being approved—for the money that is. It seems every applicant is qualified for something else—an inadvertent trigger of “unwanted sales pitches from mortgage lenders in the form of text messages, phone calls, emails, or letters.”
All of that would seem to indicate two things: There may be more than a few discouraged members turned down by lenders elsewhere who might be prime targets for a refinancing at a slightly higher rate (but still below what they’re currently paying), and it’s also probably a good time to review your own marketing when it comes to messaging post-loan decision.
The New Challenge: Top of Palm
As you may have read in CUToday.info, Amazon has introduced a new payments solution that lets consumers use their palm prints to pay for goods at its Amazon Go stores.
Called Amazon One, the solution connects a palm print to a stored credit card so they can place their hand above a sensor to enter and buy items at the checkout-free Amazon Go stores.
One analyst said there may even be the option to assign one credit card to each palm, bringing new meaning to making your credit union’s the handiest card for members to use.
And for consumers, imagine their first wave of the palm is rejected for whatever reason. Shoppers will be able to respond, “Sorry, wrong hand.”
Meetings Get Animated
In what I believe is a first in credit unions, during the recent Mitchell Stankovic virtual Underground meeting, host Susan Mitchell interacted with an animated character named “I Am.” That segued into a segment with various credit union leaders (and some members) introducing themselves as “I Am…a Credit Union.” Mitchell and I Am can be seen below.
Aloha, Who’s the Dummy Now?
One credit union recently conducted a promotion in which a member won $500 in cash. Asked what he planned to do with the money, the CU quoted the winner as saying he planned to use part of his winnings on new tires for his Chevy Tahoe, and “the rest will go toward a trip to Hawaii.”
Obviously, he plans to drive, which would explain the need for the new treads.
Change Your View
Here’s something to think about as you do your planning for 2021 and beyond. Speaking to a Filene webinar, Joe Heck of Happy Money told credit unions they should not be thinking about blowing up their business model and changing into something else the next day.
Instead, he said, “It really starts with building out the right strategy and building out against that strategy. Who do you want to benchmark yourself against? I so often hear of credit unions comparing themselves to another credit unions or banks, but frankly, that’s more of the same. Find someone to benchmark yourself against that’s not another bank or credit union and that your members measure you against.”
And he also offered this advice, as well.
“You should be thinking five to 10 years out and asking how can you run experiments with small teams that have the risk appetite to try and fail, try and fail,” Heck said. “I often hear ‘fail fast’; I really like the mindset of learn fast. Failure is when you don’t learn anything. Really pushing the envelope to learn fast that the track you’re on isn’t the right one. It all starts with a strong focus on strategy.”
An Idea to Steal
Saw this sign in a hotel. Yes, went to a hotel, mostly for old times’ sake. It’s a message credit unions might want to borrow for their own lobbies.
Someone Friend Me. Please
During that same Filene webinar, Steve Gotz of Silicon Foundry observed that Facebook did a 2015 survey and found 55% of Millennials don’t have anyone to talk to about money.
That only reinforces how isolated many people feel about their finances, and the pandemic has had the double effect of increasing that isolation while at the same time exacerbating financial pressures on so many.
“Because it’s such a loaded topic and people don’t talk about it, they make irrational decisions,” observed Gotz. “If we can build a relationship that is trust based using technology, the opportunity to be relevant increases. It’s just asking about budget or spending in a non-judgement way.”
Fragrant Opportunity for Credit Unions?
We all know the financial straits being felt by hotel operators large and small. Were it not so serious and primarily effecting front-line and already low-paid hotel staff I’d say it’s karma for all those resort fees.
But still it was surprising when I received an email from Marriott recent offering savings on Marriott patio furniture, bedding, décor—and my favorite of all, fragrance.
And that made me wonder how are credit unions missing out on this outstanding non-interest income opportunity with members who are missing visits to their favorite credit union branch. Eau de Lobby, anyone?
Frank J. Diekmann is Cooperator in Chief of CUToday.info and can be reached at Frank@CUToday.info. Mr. Diekmann is also author of the new book, ‘501 Name Tags: Everything You Need to Know About Business Can be Learned at a Conference & Forgotten in the Trade Show.” For info: www.501nametags.com.