Comments on: VIDEO POST: Growing Your Credit Union–A Contrarian Strategy Worthy of Contemplation http://www.creditunionstrategy.com/video-post-growing-your-credit-union-a-contrarian-strategy-worthy-of-contemplation/ Strategy. Leadership. Culture. Thu, 26 May 2011 18:16:43 +0000 hourly 1 http://wordpress.org/?v=3.0.3 By: Michael Hudson http://www.creditunionstrategy.com/video-post-growing-your-credit-union-a-contrarian-strategy-worthy-of-contemplation/comment-page-1/#comment-1725 Michael Hudson Thu, 22 Jul 2010 21:05:07 +0000 http://www.creditunionstrategy.com/?p=1653#comment-1725 Good point. I guess I am really trying to push CU folks to think beyond the deposit-lending model and expand their business models to better serve their members real needs. With loyal aging members whose needs are changing and who are not likely to be borrowers in the future, i.e., that there may be opportunities to serve them with new products and services. I completely concur with your second point which is another of my objectives...to get people to think about doing something different than what everyone else is doing. And my ideas sometimes stem in part from my own experience and desires. Let me share an example. Like many boomers I am dealing with aging parent issues and looking for solutions to help with some potential down the road challenges that are likely to emerge. If my credit union truly values me as a member and wants to help me with my financial well being, then it seems logical to me that they should have some solutions at hand for managing finances, dealing with long term care, and so forth...it fits their reason for existence and their general belief in helping people. But I see few CUs doing this. The deposit-lending model seems to box in thinking and limit offerings...with many essentially writing off the aging population as being net depositors (I frequently hear that said in the strategic planning sessions I facilitate) and not investing any energy in looking how they can provide services and support these folks need. That was my main motivation in writing the post and suggesting the idea of doing some contrarian thinking...which is, I believe where we really agree. Thanks for sharing your comments and expanding the discussion...I appreciate it and hope you will continue to do so in the future. Good point. I guess I am really trying to push CU folks to think beyond the deposit-lending model and expand their business models to better serve their members real needs. With loyal aging members whose needs are changing and who are not likely to be borrowers in the future, i.e., that there may be opportunities to serve them with new products and services.

I completely concur with your second point which is another of my objectives…to get people to think about doing something different than what everyone else is doing. And my ideas sometimes stem in part from my own experience and desires. Let me share an example.

Like many boomers I am dealing with aging parent issues and looking for solutions to help with some potential down the road challenges that are likely to emerge. If my credit union truly values me as a member and wants to help me with my financial well being, then it seems logical to me that they should have some solutions at hand for managing finances, dealing with long term care, and so forth…it fits their reason for existence and their general belief in helping people.

But I see few CUs doing this. The deposit-lending model seems to box in thinking and limit offerings…with many essentially writing off the aging population as being net depositors (I frequently hear that said in the strategic planning sessions I facilitate) and not investing any energy in looking how they can provide services and support these folks need.

That was my main motivation in writing the post and suggesting the idea of doing some contrarian thinking…which is, I believe where we really agree.

Thanks for sharing your comments and expanding the discussion…I appreciate it and hope you will continue to do so in the future.

]]> By: Jeffry Pilcher | TheFinancialBrand.com http://www.creditunionstrategy.com/video-post-growing-your-credit-union-a-contrarian-strategy-worthy-of-contemplation/comment-page-1/#comment-1722 Jeffry Pilcher | TheFinancialBrand.com Thu, 22 Jul 2010 18:21:54 +0000 http://www.creditunionstrategy.com/?p=1653#comment-1722 People of all ages are weird about the deposit side of banking. They think that because they are handing you a pile of cash that it shouldn't cost anything. It could be tough to create a fee/pricing structure that Boomer consumers would swallow. Generally we agree: find a niche centered around a narrowly defined audience, and zig when all your other competitors are zagging. People of all ages are weird about the deposit side of banking. They think that because they are handing you a pile of cash that it shouldn’t cost anything. It could be tough to create a fee/pricing structure that Boomer consumers would swallow.

Generally we agree: find a niche centered around a narrowly defined audience, and zig when all your other competitors are zagging.

]]> By: Michael Hudson http://www.creditunionstrategy.com/video-post-growing-your-credit-union-a-contrarian-strategy-worthy-of-contemplation/comment-page-1/#comment-1708 Michael Hudson Thu, 22 Jul 2010 01:49:11 +0000 http://www.creditunionstrategy.com/?p=1653#comment-1708 Maybe, maybe not. It depends upon how you view your membership and what you can do for them that others can't. My sense is that there is room to differentiate some credit unions by putting together packages of services that support the financial success of their aging members who are no longer borrowing money. They have needs, they trust their CU, and they have a right to expect their credit union to find ways to help them meet the financial challenges they face as the move through their lives into the next phase. Just because they no longer borrow doesn't mean they cannot contribute and benefit from CU offerings that help them manage their money, insure their future, and so forth. It's not a strategy for every CU, but it makes sense for some that have strong, loyal membership bases who look to their credit union to help them beyond just deposits and loans. Maybe, maybe not. It depends upon how you view your membership and what you can do for them that others can’t. My sense is that there is room to differentiate some credit unions by putting together packages of services that support the financial success of their aging members who are no longer borrowing money. They have needs, they trust their CU, and they have a right to expect their credit union to find ways to help them meet the financial challenges they face as the move through their lives into the next phase. Just because they no longer borrow doesn’t mean they cannot contribute and benefit from CU offerings that help them manage their money, insure their future, and so forth. It’s not a strategy for every CU, but it makes sense for some that have strong, loyal membership bases who look to their credit union to help them beyond just deposits and loans.

]]> By: Michael Hudson http://www.creditunionstrategy.com/video-post-growing-your-credit-union-a-contrarian-strategy-worthy-of-contemplation/comment-page-1/#comment-1707 Michael Hudson Thu, 22 Jul 2010 01:45:32 +0000 http://www.creditunionstrategy.com/?p=1653#comment-1707 Well said Nicky...it is a balancing act and one that needs to be managed effectively. The other point that I am making here is that there are services that the "old friends" need as they grow older...from long term health care insurance to managing funds for aging parents to handling health care costs for aging parents...that may well fit as a strategy for CUs seeking new sources of revenue. It's time to really consider what CUs can provide for their members as benefits that may produce revenues when they don't need to borrow money anymore because of where they are in their lives, but are still loyal and interested in helping support the success of the credit union. Well said Nicky…it is a balancing act and one that needs to be managed effectively. The other point that I am making here is that there are services that the “old friends” need as they grow older…from long term health care insurance to managing funds for aging parents to handling health care costs for aging parents…that may well fit as a strategy for CUs seeking new sources of revenue. It’s time to really consider what CUs can provide for their members as benefits that may produce revenues when they don’t need to borrow money anymore because of where they are in their lives, but are still loyal and interested in helping support the success of the credit union.

]]> By: Jeffry Pilcher | TheFinancialBrand.com http://www.creditunionstrategy.com/video-post-growing-your-credit-union-a-contrarian-strategy-worthy-of-contemplation/comment-page-1/#comment-1698 Jeffry Pilcher | TheFinancialBrand.com Wed, 21 Jul 2010 17:19:33 +0000 http://www.creditunionstrategy.com/?p=1653#comment-1698 Doesn't this strategy essentially forgo lending? What kind of lending appetite do those over 55 have? If you pursue a Boomer strategy, don't you essentially become a deposit wholesaler? Doesn’t this strategy essentially forgo lending? What kind of lending appetite do those over 55 have? If you pursue a Boomer strategy, don’t you essentially become a deposit wholesaler?

]]> By: Nicolette Lemmon http://www.creditunionstrategy.com/video-post-growing-your-credit-union-a-contrarian-strategy-worthy-of-contemplation/comment-page-1/#comment-1680 Nicolette Lemmon Tue, 20 Jul 2010 21:14:01 +0000 http://www.creditunionstrategy.com/?p=1653#comment-1680 Good twist, Michael, on the view of generations for strategic planning and what the Boomer generation still contributes to the credit union's bottom line. Last year I did a webinar entitled, "Don't Forget the Boomers" for many of the reasons you mentioned. Today's membership is a balancing act that requires the concept of the Lifetime Value of a Member. Your message is a good reminder to "make new friends but keep the old, one is silver and the other gold!" Good twist, Michael, on the view of generations for strategic planning and what the Boomer generation still contributes to the credit union’s bottom line. Last year I did a webinar entitled, “Don’t Forget the Boomers” for many of the reasons you mentioned.

Today’s membership is a balancing act that requires the concept of the Lifetime Value of a Member. Your message is a good reminder to “make new friends but keep the old, one is silver and the other gold!”

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