PayThink

The unsolicited merger proposal from Wings Financial FCU recently presented to Continental FCU is generating much news coverage and discussion. Regardless of one's opinion about that situation, there is no doubt that the credit union industry is experiencing a seismic paradigm shift. Not surprisingly, certain purists within the industry are convinced the sky is falling. However, credit union industry pragmatists believe there are compelling business factors that have created this new dynamic. To them, a change in the rules of engagement is long overdue.

Much like the proverbial "Top 10" list that CBS entertainment host David Letterman offers practically every night, based on our collective experience, we have painstakingly cobbled our own compilation of the best (10) ways to increase the quality loan volume for credit unions. Moreover, if you stick with the prescribed recipe, the end result will be very savory.

Just when you think there are no credit union cans of worms left to open, someone pulls back the lid on a big bucket of nightcrawlers.

All the talk about merger and "bank-raiding" acquisition of CUs is another sign of an industry in search of answers and not getting them, leading some to wonder if we're going to see a credit union version of "The Great Escape."

Most of us in the process of managing credit unions or providing systems, services and advice to credit unions would agree this is the most challenging operating environment we have seen in a long time.

(People) banded together to form a credit union, lend money to one another, and make money at the same time. Sounds like the ending of "It's a Wonderful Life," doesn't it? Except George Bailey doesn't work at the credit union anymore. -Recent Blog Posting

Glen Urban's book, "Don't Just Relate-Advocate! A Blueprint for Profit in the Era of Customer Power" (Wharton School Publishing), argues that today, consumers are all powerful in the business/consumer relationship. The Internet has given them access to information, choice and simplified direct transactions. In that environment, it's not enough to be responsive; the imperative is to be proactive.

When your members are shopping for a mortgage, they are looking out for their own best interests.

Credit unions have checked out of the Washington Hilton after 30 years, which is a mighty long stay in a hotel. Paid the bill. Said their good-byes. Hilton GAC vets will take with them a million snapshots, forever remembering...

Word-of-mouth and reputation are two key motivators of why people do business with financial institutions. That's why it's critical to understand how members and potential members perceive their experiences at various points of contact. This knowledge impacts how credit unions can more effectively attract new members, generate increased deposits and reduce attrition.