The Decision Maker

The Failure of Nokia: A Lesson about Credit Union Data

Posted by Lou Grilli on Aug 14, 2019 10:02:00 AM

Credit unions have a great deal of data on their members - how much they earn, where they spend their money, how much their house is worth. Credit unions now have access to more data than they ever had before. But most fail to leverage that data, and this should be a big concern.

The corporate landscape is littered with companies that couldn’t see or refused to see, changes in their customers’ expectations. For example, Nokia was once the most popular mobile phone provider, dominating the market. However, the company relied on its reputation, which was stellar initially, and in its belief that it knew what the consumer wanted. The problem is that many consumers don’t know that they want something until they see it. Apple, on the other hand, introduced a phone without a keyboard in 2007, something Nokia refused to do until several years after the introduction of the iPhone.

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Topics: Big Data, Branch, Disruption

The Death of the Branch: A Lesson About Credit Union Data

Posted by Austin Wentzlaff on Dec 14, 2018 11:01:00 AM

The way we think about credit union data these days doesn’t mesh with what’s actually happening in the industry. Credit unions now have access to more data than they ever have. Failure to leverage that data though? That’s where you should be concerned.

Let’s walk through an example: just over 20 years ago, Amazon entered the book retail market. Their mission was simple: deliver personalized experiences to its customers and make each interaction unique and customized to the individual.

At the time, Amazon was just one man, Jeff Bezos, selling books out of his home. For the book market retail giants, Amazon was hardly a threat, just some crazy guy trying to compete with very large and long-established institutions. Companies such as Barnes and Noble and Borders Books had well over a thousand retail locations and were selling books hand over fist.

Well, we all know how that story ends—Amazon is one of the top retailers in the world and Borders Books is now bankrupt and Barnes and Noble is struggling.

Failure to properly leverage credit union data may hurt as many branches as Amazon hurt bookstores. Basically, the outlook is grim. 

Declining Emphasis on Branches

In the past, credit union success was closely tied to the number of branches it could open. The more branches, the more members, the larger volumes of deposits and loans, and the greater the success of the credit union. All of this success is measured by credit union size rather than credit union data.

As we’ve seen in other industries such as Amazon versus the book market, this has started to change dramatically. The emphasis on the branch at credit unions has since gone away. Members are now looking to more convenient avenues to do their financial transactions.

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Topics: Credit Unions, Branch, Data Analytics

The Death of the Branch: A Lesson for Credit Unions

Posted by Austin Wentzlaff on Nov 8, 2016 11:08:30 AM

Just over 20 years ago, Amazon entered the book market with a simple mission – deliver personalized experiences to its customers and make each interaction unique and customized to the individual.  At the time, Amazon was just one man, Jeff Bezos, selling books out of his home. For the book market retail giants, Amazon was hardly a threat, just some crazy guy trying to compete with very large and long-established institutions – companies such as Barnes and Noble and Borders Books which had well over a thousand retail locations and were selling books hand over fist.  Well, we all know how that story ends - Amazon is one of the top retailers in the world and Borders Books is now bankrupt with its failing assets being absorbed by Barnes and Noble, which is still struggling today.

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Topics: Branch, Disruption

The Credit Union of the Future

Posted by Peter Keers, PMP on Dec 8, 2014 11:00:00 AM

McKinsey & Company released a fascinating report in November 2014 titled The Bank of the Future.

The observations of author Somesh Khanna are very relevant to the credit union of the future with a few unique twists.

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Topics: Credit Unions, Branch

4 Ways “High Tech” meets “High Touch” in Credit Union Big Data/Analytics

Posted by Nate Wentzlaff on Nov 18, 2014 11:26:00 AM

Member-focused initiatives must be blended with high tech solutions in the credit union industry

In his #1 New York Times Bestseller book, Megatrends, John Naisbitt predicted that with the rise of “high tech” solutions, people would increasingly feel a need for “high touch” connections to balance technology overload.  The need for personal touch in financial services has been continuously met by the credit union industry.  Many banking customers have become disillusioned after being treated as just another number in a bank’s system.  The mission of credit unions is to deepen relationships with their members to provide them with exceptional products and services.  However, they realize that technology on its own will not bring about superior service for their members.  By keeping the High Tech/High Touch balance in utilizing Big Data/Analytics (BD/A) solutions, credit unions will bring efficiency to their processes and excellent service for their members.

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Topics: Big Data, Membership, Branch, Lending