Credit unions have had a wonderful run of being a one-size-fits-all for members, but those times are disappearing just like the credit unions who are still trying to be one-size- fits- all. As the financial services market becomes extremely commoditized, credit unions are typically going after the easiest opportunities. Volume sales with shrinking returns only lead to a point of no return.
The best returns on your credit union strategic initiatives will be from carving a specialization niche in your market place. The harder to reach, the more work required, the less the competition and the greater the rewards. Are you ready to go after the opportunities where you can eliminate the competition?
How are you defining the markets you want to serve, not necessarily the markets you have been serving?
If you've typically had a manufacturing base of membership and your board is populated with those type employees, how flexible are you able to look at changing directions? Sometimes we are afraid of the answers we might find therefore we don't even ask the questions. But if you have the opportunity to ask the hard questions, here are questions that will improve your growth opportunities.
Some hard questions to ask yourself:
Is the foundation of my membership growing or shrinking?
Is the average age of my membership increasing or decreasing?
Is my loan portfolio growing or shrinking?
What is the profile of my perfect member?
How can we serve that perfect member in the best ways?
What changes would we have to make in order to attract and serve the perfect members?
Would the perfect member be willing to pay more for a perfect fit with a credit union? I'll give you the answer to this one -- YES!
Are we able to make the shift to smaller market share, yet a more profitable market share? If so, what would be required?
The credit unions willing to take this hard line approach to the future will in fact have a future that is more about thriving than surviving.
-- Russell
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