Socially-Distanced Marketing, Strategy, and The Force

Tag: financial education (Page 1 of 2)

A Credit Union Futurist? Or Jedi Knight? [Video]

May the Fourth be with you today and always.

In pursuit of Jedi ideals of equity, freedom, and justice in the galaxy, we discuss the future. Not in a galaxy far, far away, but right here. What does the future of this scenario look like?

It’s a complicated question and one which nobody has the complete answer. However, there are some good ideas. Looking at current and historical trends, then extrapolating the most likely path…

No, we’re not going complex formulas and such on you. Let’s keep it simple. My main points:

  • Continuing to serve existing members in a challenging time
  • Managing a remote workforce and the consequences (and opportunities) that come with it
  • Commercial real estate and the coming implosion
  • Fee structures and making sure you’re not punishing those least able to afford it
  • Equity moving forward to empower all while sharing honest and unbiased education

Ok, that’s enough introduction. Just be happy I didn’t use the intro crawl. Hmm, that isn’t a bad idea… Nah, we’re good. May the Four…ahem, the Force, be with you!

What, you don’t have Jedi robes?

Your Mission Demands It

Originally published on CUInsight.com

Why does your credit union exist?

Go ahead and think about it for a moment. I’ll wait.

Is it to provide safe storage and management of your members’ money? To help those in troubled financial situations? Maybe it’s to create a community of similarly-employed citizens.

Whatever your reason, it should matter. If your purpose for existence is just another version of Wells Fargo’s mission, then why even bother? (For reference, this is their vision statement: We want to satisfy our customers’ financial needs and help them succeed financially.)

So what makes your credit union different? This seems to get lost in the day-to-day of marketing pushes, car sales, core conversions, and more. It’s a question only you can answer.

Here’s an idea:
We exist to provide top-of-class financial services, education, while offering a unified voice in support of our members’ best interests. 

You probably aim to achieve the first two parts today. Ask yourself: How are your financial services? Would you bank there? Even better, would you encourage friends and family to do so? (Then why aren’t you referring them?!) Financial education is crucial to every member, yet few have the knowledge needed to maximize their savings potential. I’m sure you do what you can to help educate them, right?

And then there’s the last part: “Offering a unified voice in support of our members’ best interests”. This is where it gets fun.

Ask a credit union or industry trade group to support the tax exemption and you get cheers all around. They’ll “hike the hill” 5000 strong to demand “common-sense regulation” that reduces the time and financial burdens on credit unions large and small (but primarily the latter). If you are fighting for survival, then you’re automatically fighting for your members, right?

Not. Even. Close.

I support the tax exemption for credit unions. I also agree treating the vast majority legislatively the same as a national bank is unnecessary. Theresa in compliance cannot possibly provide the same level of, well, anything, that the 200-person team at Bank of America can (and should) offer. Of course, we’re getting sidetracked. I said, “members’ best interests”, not credit unions’. And it’s where we are doing a disservice to 1/3 of Americans.

The next few posts will dive into, issue by issue, areas where credit unions have a responsibility to speak out in support of their members. You’ve already seen my take on Net Neutrality (and my interview in CUtoday; many thanks to them for the focus!). Next up: The allure of Free. Then payday lending. And taxes. With a dash of de-regulation for extra flavor. Because what you don’t have to do can still hurt your members.

Credit unions and their lobbyists love to talk about how they are representing a large portion of America. It’s about time they use their voice to improve peoples’ lives.

“I Want To Do It Myself!”

Update 8/23/16: NCUF recently held a #foundationchat on Twitter about member financial education. Though this was written prior to that discussion, many of the points are shared.

Very short background: My family has a vacation property we rent to guests during their travels. The audio/video components (TV, stereo, DVD, etc.) have detailed instructions for use. Of course, there’s always someone who thinks they know better, and rewires the system to their whims. Shockingly, it then doesn’t work right. Puzzled and embarrassed, they leave it and future guests complain the directions are wrong. Cue regular phone conversations troubleshooting and working around these modifications until I can get back to fix the “updates”.

Stereo systems aren’t the only thing people know better. Financial services, too. Members need your help, but, like most people, want to feel they are doing things themselves. How can you empower them while educating and guiding towards your services?

Think back to learning to ride a bicycle. Did your parents send you off the nearest black diamond cliff with nary a wave? If so, we need to talk, because you have stories to tell.

Typically, there’s a training period…with training wheels to protect against falls. That’s your financial education program. It’s a foolproof service for those who need careful guidance. But some people know how to ride a bicycle; they’re just not too confident. If you were wobbly, and I suggested putting the training wheels back on, how would you respond? Exactly.

Create a tiered education/action program for them as well. It’s no longer about rolling up and down the driveway; these members are riding down the easy trails (ie. taking first steps to managing their funds)! The steps taken now are their own, with suggestions by your team. If your member tips their bike, the credit union is equipped to catch and help get them pedaling again. Each consultation enables the member to go further on their own, with confidence and competency.

Every day I read about how credit unions are the leaders in financial education, that they can serve the role sorely needed in our society. The NCUF promotes it on their home page through grants, youth programs, and more. CU Social Good asks credit unions nationwide to share their stories. It’s all about the strategy! Just as you wouldn’t learn to ride a bike by reading a manual, so to it is with finances; action is what excites.

How are you empowering your members to use the financial stereo system efficiently?

Image credit: http://characters.wikia.com/wiki/File:Lion-king-simba.png

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