Credit Union Geek

Marketing, Strategy, and The Force by Joe Winn

Tag: credit union (page 1 of 4)

The Difference Between Succeeding and Trying

A few years ago, I had the pleasure of attending a Tony Robbins event.  If your mental picture is a large gathering of people looking to become more positive through “ra ra” activities, then you’re half right.

It is an enormous group of committed individuals. At a typical event, there are over 4,000 people in attendance. Over the course of 4 days, you participate in ways only understood after doing them, and leave a changed person.

It’s not motivational speaking, it’s “change your state to change yourself.”

Do You Want Or Need?

One of the great take-home messages I grasped was this: If you want something, you might eventually make it happen, if convenient.  If you need something, you will do anything and everything in your power to make it happen.

To quote River Tam, “No power in the ‘verse can stop me.” An example which resonated with me was this: How often do you hear about people seeking weight loss? “I’ve just got to lose a few more pounds.”

We’re going to get dark for a moment, not Reaver dark, but Sopranos dark. If I told you that you need to lose 10 pounds by tomorrow, what would you do? Sure, it’s not preferable, at all, but you could slice off a leg and achieve the goal.

Achieving your goals should not be about causing yourself irreparable damage, but the idea is potent.  When there’s a need, there is a way, even if it is extreme.

Goals At Your Credit Union

How do you approach goals in your credit union (or personal life)?  Are they wants or needs? A want can be put aside as more important things arise. A want does not create a sense of certainty within you. A want is just that, something that would be nice to have.

Look at your goals as needs. Become absolutely certain they will be achieved. Set a timeframe within which they will be done. Take action NOW, even if it is a small step.

Remember, a need is like air. You can’t do without. It will happen, you already know.

It’s just time to show everyone else.

Image modified from amazing series/film Firefly/Serenity.

Cash Out Needs Cash In

None of us want to see another lending crash. With today’s NCUA and FDIC insurance programs, money won’t be lost, but investments, collateral, and jobs are always in limbo.

How many of you know someone at a credit union which underwent a managed merger, either as the takeover entity or the one being absorbed? It accelerates a consolidation of the market, sure, but I don’t need to explain to any of you the hardships endured.

This post arises from a situation we faced during a recent partner planning meeting. The credit union had less-than ambitious goals for their auto lending growth. “Odd”, we thought. It was not until later in the meeting that we learned some background on their numbers.

Ever hear the phrase, “too much of a good thing”? This credit union was living it. They had been quite successful recently in their lending, so much so their cash reserves were depressed. The institution no longer had large sums of cash to lend and chose to devote marketing resources on growing their share account values. Turns out it isn’t an uncommon problem, as reported by CreditUnions.com

What a wild challenge! It got me thinking. How can a credit union build cash reserves which are secure for a period of time, yet provide a value to their members? While, of course, having a low cost of attainment and maintenance?

I’m no financial expert (if my schooling had finance, I don’t remember). However, before I became more involved in investing, my go-to “safe bet” was a Certificate of Deposit. One year, three years, even 5 years; it was ok, since the money was safely locked away and earning a fixed interest.

Might CDs be a cost-effective strategy for growing cash reserves? No debit card required, the cash has a guaranteed term, and the member is happy to get more than 0.00014% interest.

Granted, I grew up in a world of Ferengis hoarding gold-pressed Latinum and a Starfleet which did away with money hundreds of years in the past. Perhaps I’m Scotty talking into the computer mouse in confusion.

Disclosure: As an independent agent working with credit unions, forced mergers are usually bad for our business. If our partner is the one being absorbed, we can probably bid their alliances goodbye. However, if it’s the other way around, we may find the potential market expanded. In truth, we would much rather expand our business through organic growth and greater credit union partner success. So, credit unions, please use your best judgment on maintaining a conservative loan to shares ratio. We are but lowly partners and should never be looked to for financial management advice. Besides, I’m a geek Millenial/Gen Y. Everyone knows you can’t trust us.

Disclosure 2: Image from Star Trek: DS9. Source: http://www.adafruit.com/blog/wp-content/uploads/2013/03/quark_600.jpg

Is Your Computer Reminiscing You Into Insecurity?

The Internet is a unique place. Where else can you come in with antiques that are only a few years old? And even more, those “antiques” can put you in danger! Imagine if your car, at the end of the lease, was considered “obsolete”. So much for that ’65 muscle car! May as well get rid of it now before it explodes at a stoplight. Really, it’s only a matter of time!

Yes, the pace of digital improvement is staggering. As is the pace of obsolescence. Part of it is “planned”, where a manufacturer or developer wants you to buy their latest version, so they stop supporting the previous. Another aspect is opportunity cost. Keeping security and compatibility updates flowing for an older product requires staff time and resources. At what point does that investment become a losing proposition?

The core of our network-connected society has become the web browser. What used to be “just another program” on your computer has evolved into an operating system of its own. Suffice it to say, your trusty IE, Firefox, Safari, or Chrome (or Opera, if you’re one of the brave outliers) does an incredible amount of work behind the scenes. They are what allows us to receive notifications from websites, load full 3D games in a webpage, play back videos without additional software, and display engaging websites powered directly by the computer’s video card. If you want to see how far we’ve come, simply install an old version of Mozilla Firefox, say, 1.5 (from 2005), into your computer. Watch how slow browsing becomes, how many sites refuse to load, or do, but with horrid interfaces.

Unfortunately, with the good comes the bad. There are individuals and groups out there which want to do harm to your computer. Some for “fun”, others for profit, and still more for political motivations. As a result, your lock is always being picked. Good thing there are security teams devoted to closing these holes at every company! Security updates are the main reason why you receive regular updates on your computer…do them! Patch Tuesday, the monthly Windows Update, may include dozens of security fixes for the operating system and Internet Explorer. Each time you skip one of these, you are leaving your door unlocked for the person who knows where to look.

Which brings us to the point. I had a peek at my logs for credituniongeek.com. Between the period of November 17, 2014 and December 17th, 2014, my site was visited by potentially unsupported web browsers. 10.28% were using Internet Explorer 8, which, if you’re on XP, is no longer receiving security updates. An additional 4.67% were browsing on IE 7, an incarnation of the program which struggles to load much of the modern internet, and, as well, has unpatched security vulnerabilities. Read Microsoft’s official support policy.

I understand if your credit union has custom software running on old platforms. It’s expensive to change, and if it still serves your staff and members, why upgrade? That’s fine. But these systems cannot be connected to the public internet. Especially at a financial institution, this is asking for security breaches. Even with good procedures, it happens, all, the, time.

For the safety of your credit union, members, and staff, please update your public-facing systems.

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