Collaboration is one of the first solutions offered by roomfuls of credit union CEOs and leaders: “If we would just collaborate, we...
Apr 23 2009
A Road Map for Credit Union Collaboration
Operational efficiency is a critical competency for credit unions in this downturn. In A Road Map for Credit Union Back-Office Collaboration, Michael Taylor of Schellingpoint interviewed 150 senior credit union system executives to identify key areas to decrease operational expenses through collaboration agreements. The report maps hazards, a range of suitable routes, and advises credit unions on how to collaborate strategically.
The road map includes the following steps:
- Make the business case: Even though a burning platform does not currently exist for large-scale credit union collaboration, certain areas such as compliance, card services, and bulk purchases were identified as prime candidates for collaboration because of the clear business case.
- Design the collaboration: The report describes the various collaborative business model considerations, including choosing the right organizational structure and models to scale a collaborative venture, dealing with loss of control concerns, and selecting suitable partners.
- Conduct the collaboration: The most common issues to arise from the credit union interviews conducted include partner competency concerns, development of the right metrics and measures of success, fostering and maintaining partner relationships, and specific technology barriers/enablers
Report Number 183