SInce the financial crisis commenced in September 2008, I’ve kept track of the number times credit union’ers have said, “We need to take advantage of this crisis and grow our business.“
The results are in and, as of today, the final tally is 1,579 times. Judging from the significant earned media, and credit union growth since late 2008, it is clear credit unions did not just offer up rhetoric, but took significant action as a result of the crisis.
BUT, we all knew this window of opportunity would close. The graph below reports the percentage of bank senior loan officers tightening underwriting standards for credit cards and other consumer loan products.This data can be seen in its entirety via the Federal Reserve’s Senior Loan Officer Opinion Survey on Bank Lending Practices
It appears the window of opportunity is about to close. Agree? Disagree?
Talk amongst yourselves…
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Although the “Window of Opportunity” is beginning to close, I believe there still is a breeze flowing through the remaining opening, and credit unions can still take full advantage of it. But to do so there needs to be a mind change from me to we, from I to us, from mine to combine.
This movement, this financial philosophy was founded on seven cooperative principles with a single mission of people helping people. It was these principles and this philosophy that allowed this movement to flourish during every recession and depression since 1844, including the most current economic downturn. Our counterparts in the financial industry have not been guided by these principles or philosophy, and have suffered the consequences, or caused them, in nearly every recession and depression since the 14th century.
To get our message heard and understood, we must do it cooperatively and uniformly, not competitively and individually. Until such time, we will always maintain a 1.5 percent market share of the financial industry.
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Great point Richard. There’s always opportunity, especially in cooperation.
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There are certainly a few credit unions who took advantage of the crisis, even some who exploited it to the fullest extent (like Goldenwest in Utah). But the vast majority of credit unions did little more than leave their doors open. The earned PR media exposure has very little to do with the direct actions of credit unions and everything to do with the mainstream media’s lust for fresh bank-bashing angles in the wake of the meltdown.
I can’t help but wonder how credit unions would have fared if they had debuted a national campaign in Fall 08/Winter 09.
The window is closing, but it isn’t closed yet. Sadly, the peak has passed.
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Really have to agree with Mr. Pilcher. The media has helped open the door and the CU industry has not fully leveraged the opportunity. Needs to be a push soon before the opportunity passes.
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Jeffry/Bryan…how can CU’s better leverage the opportunity given the circumstance they find themselves in?
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