Who are the Competition and How Do They Impact Us?

You are not alone. You have competition all around you. Some you readily recognize and some you may have forgotten about, or not even known about. A common mistake among credit unions over the last ten years has been to try and copy the competition and offer the same products and services they do. You want members and prospective members to find a reason other than low fees and better rates for choosing you as their primary financial institutions.

You want to understand competitive strengths and weaknesses, and a solid knowledge of other factors affecting the business environment at a national, state and local level. Figuring out the competition is knowing where to avoid stepping toe to toe in their strengths and exploiting their weaknesses. It’s all in how you want to position your credit union. In some cases you will attract members because they prefer you and where you’ve positioned yourself; on the other hand, you may also drive some members away. Both results are ultimately good for everyone involved.

Right now the market is becoming even more volatile than ever before. Mortgage companies are going out of business, and the credit market is shifting causing all kinds of ripples for credit union executives to be in tuned to. As this situation continues to shake out and foreclosures and bankruptcies level off, everyone is going to be looking for the opportunities that have opened up in this shifting landscape. In some cases this will level the playing field and provide a short-term window of opportunity. Be ready! The more you understand your competition and the climate of the financial world, the less energy you will have to expend and the greater the opportunity to grow market share will be.

Information is power and that has never been more true than in the strategic planning process. You need good reliable information in order to win the battle for market share and membership growth.

-- Russell