TALLAHASSEE, Fla.-The CU24 study also found 51% of CU leaders believe better service is the strongest competitive advantage of CUs over banks, compared to 22% who cited better loan rates. EVP/COO Jim Gowan said this points to an important question for all credit unions: "What really is our value proposition that differentiates us from banks?"
The answer?
"It seems to be all over the board," he appraised. "For years it was having the best rate, but in our survey the majority said service. Credit unions really have to evaluate their local area and who they serve to determine what they can hang their hat on."
Gowan offered two examples of tailoring offerings to meet the local community, citing a California-based CU targeting first-time homebuyers looking to take advantage of depressed pricing, and a CU affiliated with a major university that had moved to a community charter but is now refocusing on its original FOM. The latter CU has seen a significant increase in mortgage lending.
"There is no silver bullet, but the key is to analyze the opportunities in the local environment, create a strategy and execute the strategy," Gowan advised.
