Seriously…did you? Last week’s USA Today got as close as you can get to ranting about credit unions. While you can argue the merits, fairness and balance of the article’s treatment, the credit union system suffered some bad PR. I came away with one positive message for credit unions.
Credit unions need to focus and double down on operational efficiency.
- Reason 1: Fee income is what keeps credit unions in the black. How much do members love fees?
- Reason 2: Credit unions’ operating efficiency ratio is way out of line with other financial institutions.
- Reason 3: The regulatory environment is changing. Congress loves consumers and they may profess their love by curtailing such programs as overdraft protection.
Fortunately, there is a solution: large-scale back office collaboration. The promise of this type of collaboration is operational efficiency and the opportunity for credit unions to focus on their core activities: superior member service.
You can check out a generic collaboration road map Filene created for credit unions. Alternatively, in the near future Filene will work with a handful of credit unions to apply this research on a more specific basis. Email research@filene.org for more information.
So, don’t despair the bad PR, do something about it.
Comments
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We need more of these short lists – what to do, in 3 easy reasons. Plant the idea, let it germinate, grow a solution. Not all seeds produce equally – nor even the same product. Think about it though ….. doesn’t every act, no matter how small, start with a thought?
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