LAS VEGAS -
That was the message from the opening keynote at the CUNA Technology Council's recent summit here. Randy Harrington, CEO of Eugene, Ore.-based Extreme Arts & Sciences, said credit unions should take advantage of the explosion of Internet-based social networks. Instead of trying to reach households, he asserted, CUs should think in terms of connecting with social networks in their communities.
"Start e-conversations on the credit union's website," he advised. "If someone is buying a home or having their first baby, let them come in and exchange messages with other first-time homebuyers or first-time parents. Get people participating in a social network with other members on the trusted Credit union website."
On a similar note, Harrington urged CUs to increase interactivity on their websites, which he said would increase credit union relevance to the 18-to-24 set.
"Young people like generating their own content. Interactivity is winning; just receiving content is losing. Young people want their cell phone notified by their credit union when bill pay pays a bill. CRM is important, managing relationships is important, but it is essential to have young people involved in credit unions. Credit unions must be on MySpace and they must be involved in social networks."
There are many big challenges facing CUs today, and Harrington said a number of those fall on the backs of IT people. He said the technology staff must be an "active, strategic voice" at their credit unions, and help management see what is possible. Ten years from now, he said, the "winning" CUs will be the ones that make good technology partnerships.
"CEOs are idiots because they operate in fear of the balance sheet-they want to make the same old tired model work," he declared. When the audience gasped and then laughed, Harrington quipped, "They're not here, so we can talk about them.
"IT people need to bring fresh ideas to the credit union," he continued. "Technology eliminates barriers to commerce. Advertising is moving to interactive, online media. Technology will change the way software is distributed. In Korea, mobile devices have supplanted the laptop as Internet access points. Eighty percent of Koreans are online, and 100% of those 80% access the Internet via broadband."
Technology has advanced to the point the "Five Nines" are a given-meaning a CU's systems should be up 99.999% of the time, Harrington said. "Failure is not an option. Offline is not an option. No excuse. Anyone who is struggling to keep systems up and running 24/7 should get out of the business because it is expected."
One key subset of technology is search. Harrington said Google is dominating globally on a scale that is "unimaginable." He said the company's stock price is doing well because search has become a part of people's lives. Also, it has become a component of most operating systems.
Credit unions should look into advertising connected with search, he continued. For example, if someone searches "1968 Corvette," a used car loan ad should pop up.
"Credit unions are betting on people," he said. "The more credit unions interact with social networks, the better. Make 'membership' mean something. In five years, members' expectation will be to access their accounts in every way and have meaningful interactions."
