MADISON, Wis.-There is one idea all credit union people agree on: CUs are the best thing going in the financial services marketplace.
Yet that leads to an obvious paradox, according to Denise Gabel: "If credit unions are so great, then why don't we have a bigger market share?"
Gabel, the chief innovation officer for Filene Research Institute, based here, said she believes that as 2012 gets underway there is "no better time to be a credit union." But it's also a time to be wary of complacency brought on by that warm, fuzzy feeling.
"We all know we need to innovate; the big question is how," she said. "The cost of doing nothing can be high. If we do not invest in new products, services and technology, the advantage will not remain with us."
People "only know what they know," observed Gabel, who recommends CUs discover what is going on in other industries they know nothing about, and then borrow the best ideas.
Seek Out Stimuli
At the same time, CUs can examine themselves-but the key is to "zoom out" or "zoom in" to gain a perspective that is different from the usual day-by-day operations standpoint.
"Seek stimuli," she advised. "Look for barriers to giving better service or getting people in new products."
Ideas can come from anywhere and everywhere, Gabel continued, which she said means CUs should gather input from the members themselves.
Among the factors holding credit unions back from being successful are costs, regulations and pessimism, Gabel said. She suggested if a product or service was tried previously but did not work, CUs should try making small changes rather than discarding the idea entirely.
"An experiment might yield a different result," she said. "Innovation is worth the time, but a credit union needs to take that time to investigate, experiment and pick its battles."
