PayThink

Frank Diekmann's column in the Sept. 17 issue of the Credit Union Journal referenced bloggers on the Internet who had written, "I hate my credit union." I'd like to add my own personal perspective. Apparently these individuals were incensed about having to stand in line waiting for what seemed to be an eternity to process their financial transaction because credit unions have failed to staff appropriately.

When you think of J.D. Power & Associates it's near-certain you also think of automobiles and the customer satisfaction ratings the various manufacturers are always extolling.

Why should credit unions do research? First, according to W. Edwards Deming, father of TQM, there can be no improvement without measurement. Further, without measurement, there can be no innovation because innovation is irrelevant if it's not improvement. Research provides the baseline from which to judge improvement, innovation and success.

Postal rates are changing. First Class mailing items have gone from 39 cents to 41 cents, and the cost for other types of business mail are also going up, including rates on non-standard pieces like 9" x 12" envelopes and even "bulk rate" for pre-sorted automated mailings.

I read with great interest Frank J. Diekmann's editorial in the Credit Union Journal (CU Journal, Sept. 3) about how some current events are eerily similar to the S&L crisis of the 80's. Bear with me for some quick thoughts and observations. I lived and somehow survived that era to be reborn in 1998 as a credit union CEO. I can tell you that there was a lot of wheeling and dealing that caused the problem but there was also "regulatory" help along the way.

On Sept. 10, in the Credit Union Journal's daily news, there was a short article titled "Ensweiler Calls for National Cooperation to Build CU Membership." Dick Ensweiler is absolutely right. In fact this past spring I was contracted by CUNA to write the opening portion of a white paper on the merits of a credit union national branding effort. If you have an opportunity to read the white paper you will see that I believe in a national credit union brand. But it will only bring value to the industry if individual credit unions understand how to build on the CUNA national branding effort with their own local marketing and advertising.

About a year ago I created a marketing term: Brand Pimp. A Brand Pimp is defined as a person, business and/or organization that will ruin an established brand by cheapening it just to make a buck.

Banks generate precious revenues by utilizing call centers that are able to help customers with questions and concerns, while functioning as a means to market and cross-sell. Unfortunately, credit unions tend to lack these call centers due to their smaller sizes, limiting them to websites and face-to-face interaction as a means of member contact.

Few people likely noticed, but two pieces of world history and credit unions intersected last week like bookends of the Cold War.

It's been a rough few weeks in the financial marketplace. The housing sector seems to be crumbling (especially the subprime market), financial stocks are bouncing around, the bond market has seized up and investors are besieged with fear. With new worries over a coming credit crisis, no wonder it looks to many like we're headed for a complete market meltdown.