DES MOINES, Iowa-The pace of change within the financial services industry has never been greater than it is today-all the more reason why credit unions need to look outside the industry for new ideas and business approaches to remain viable.
That is the advice of Shazia Manus, CEO of The Member's Group, who said a rethinking of current CU processes and approaches is needed with all that is occurring, particularly the quickly evolving payments space.
"Competition is brutal, it's multi-faceted and is coming from non-traditional players," said Manus. "Innovations are happening at great speed, and consumer sentiments are shifting widely. Credit unions need to look at all this, revisit their vision, as well at look at ways to provide more value-added services."
To help with the task, Manus said the industry needs to "seek inspiration" outside the movement. "This broadens your holistic vision. You gain more peripheral insights," said Manus, who covered the point in her recent white paper titled "Strategic Planning's Big Questions."
Manus stressed that a lot of the change CUs must undergo is aimed at ensuring they remain relevant to consumers.
"I encourage credit union executives to challenge some preconceived assumptions about the membership. There is a cultural shift happening-a new Millennial generation is coming on, people's preferences are shifting as more choose to do business with a financial provider they feel they can partner with, and just the proliferation of digital payments media."
Manus acknowledged that payments is at the center of the greatest change. "It took 50 years for mass adoption of the telephone, 13 years for computers and now the iPad 18 months. Consumers are clearly adopting technology faster."
Technology is where a great deal of the value-added services will come from, noted Manus.
"Take Louis Vuitton. The company is engaging consumers with its brand through mobile apps. Louis Vuitton is a well-established high-end brand, but they are interacting with consumers in new ways. They are engaging people through the digital side of the world, and as a result they are becoming more relevant to consumers and appealing to a new generation of clients."
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