TALLAHASSEE, Fla.-Before a credit union develops its strategic targets, it should first closely analyze if certain products aren't a better fit right now given market issues.
Anything less could produce a strategic plan that's ineffective, explained CU24 EVP and COO Jim Gowan. "In our work with credit unions this past year, those that have been able to keep their heads above water have done a good job understanding their marketplace and what opportunities may or may not be presented. Are their specific products, given the current economy, that are going to do better than others? Credit unions should really understand the local dynamics, their members, and competitors, and use that data to develop a focused strategy."
Gowan shared the example of a large credit union in California in an extremely difficult economic climate. "They decided that the only thing they can focus on from a lending perspective are first-time homebuyers," Gowan said. "Home prices have gone down so much that people can finally afford to buy."
What credit unions should also pay attention to, regardless of the local economy, is driving members to get cash back at point of sale rather than ATM withdrawals. "Even with surcharge-free ATM networks, there is a cost to the credit union," Gowan reminded. "You move member behavior toward cash back at POS, you not only get rid of the ATM cost, you get interchange income. It is still convenient for members and the credit union wins, as well."
While mobile banking is likely on many strategic planning lists, Gowan said discussions should be around "bringing mobile banking to the next level-and that is mobile commerce. How do you offer different products and services through mobile banking that meet individual members needs? Sort of like Amazon.com. They will send you suggestions on things to buy based on your purchasing profile."
For info: www.cu24.com
