BankThink

With membership growth hovering barely above 1% and more competitors vying for consumers’ wallet share, attracting new members is an important but formidable goal for credit unions today. For those willing to make targeted, strategic investments to attract prospective members, the Gen Y market represents a prime growth opportunity.

Certain subjects lend themselves to perpetual debate: Red Sox vs. Yankees. Red states vs. blue. Pretends to know which wine to order vs. the rest of us. And then there’s credit union careers vs. most others.

No one except bats enjoy living left in the dark. Ok, there are some other nocturnal animals, but this is not about them. This is about directors, new directors, who want to contribute to your credit union’s success and to see positive results. Rather than wait years in most cases, an orientation program can provide insights that take them out of the dark.

Gaining new members requires a two-step sale. First, people need to become aware of what credit unions are and their eligibility to join. Only then can they be sold on a specific credit union. Awareness surveys and other non-member studies are crucial for positioning institutions to succeed with both steps.

I knocked twice, positive I had heard some shuffling behind the door. Still no answer. I thought about checking the address, but had been here a half-dozen times before and was positive I was in the right place. 1776 Duke Street? Yep. The name of the proprietor carved in the stone façade facing the street: National Credit Union Administration? Yep, this was the place.

As members file into Guadalupe Credit Union’s 60th annual meeting it feels like a joyous family reunion. The setting is the school cafeteria at Santa Maria de la Paz Catholic Community Church, just 50 yards behind the church itself. It is late February immediately following 12 o’clock mass with the temperature hovering at 47 degrees. Whole families are intermingling; hugging, laughing and greeting each other. A Mariachi band plays as children run with balloons and enjoy punch and snacks, anticipating the New Mexico style buffet lunch with amazing homemade contributions.

As NCUA considers adding examiners nationally as well as within Region 5 (Credit Union Journal, March 28), the California Credit Union League welcomes the agency’s proactive approach to helping credit unions make important financial decisions during the current economic downturn.

An interesting question to ponder now that a state court has ruled that a credit union’s bylaws exist for a reason and boards cannot arbitrarily decide whether or not to follow them, is just how certain boards will now react.

This is the second part of a three-part series examining the board function at a CU.

In their classic book, “The Discipline of Market Leaders,” Treacy & Wiersema discuss three marketplace differentiators: operational excellence, product leadership and customer intimacy. Product leadership is difficult to achieve in a highly commoditized marketplace, and operationally, few credit unions have much fat to cut. That leaves customer intimacy as a differentiator and driver of growth.