5 Things Every Credit Union Board Wants in 2015
December 14, 2014
In my experience there are three things that every board wants. Less risk, more profit, and more predictability. The good news is that as financial institutions you are pretty good at all three of those. That being said, the game is changing with each new technological revolution. In a rapidly changing field, board members must push their management teams to have defined strategies for the following five areas:
- Mobile Wallet Strategy
- Integrated and Holistic IT Security
- Content Marketing
- Data Analytics
Google Wallet, CurrentC, ApplePay, Softcard, PayPal, AmazonPay. The world of payments disintermediation is coming. Smart phones are changing our shopping and payment experience. Credit union boards need a mobile wallet strategy and plan that enables the credit union to maintain its brand and relevancy with its members. It should have the ability to create new revenue channels, lower risk, and work for ALL members with smartphones. What exactly is a Mobile Wallet? Check out our blog post series here. What exactly is a Mobile Wallet? Check out our blog post series here.
Integrated and Holistic IT Security
The past 15 years have been a constant bolt on of new security products. Boards should rethink security to move to holistic security platforms that bundle enterprise tools, reporting, experts, etc., leveraging a best of breed and defense in depth strategy while easing the regulatory burden and constant impact of evolving security conditions. Most credit union IT Security looks like a house built one room at a time over 15 years with different materials. It is time to start with a clean architecture, tool kit, and approach that provides the best tools in a well designed and orchestrated fashion. Without this credit union IT Security will continue to look like a janitor with 50 keys on a key ring – struggling to find the right key at the right time.
If you have a question where do you go? If you said Google – you are like 99% of us. We all trust Google to find us the right answer to critical problems in our lives. The same is true for your members. Content marketing is a combination of what you know and what your members care about. Making your expertise ‘findable’ on search engines is no longer a ‘nice-to-have.’ It’s a must-have. Make sure your members find your products and solutions when they ask key financial and life stage questions of Google. Only a credit union can make these answers local and relevant for your members. Boards should be demanding that credit unions have a content marketing strategy to enable their members to find their credit union at the right place and right time.
You may not need to budget for big data yet- but you need to start having a strategy. Your strategy should try and identify A) lots of questions you are trying to answer B) what you would do differently based on the answer. Then the credit union needs to budget for the data warehouse tools as well as the analytics help to find the answers, adjust your strategies and be intelligent in helping your members. Only the credit union knows if a member has money and when/where they are likely to spend it. Your members will appreciate good analytics and it will improve the member experience if done well.
CUFX - Credit Union Financial Exchange
This one is relatively inexpensive. Sign-up to support CUFX and budget some money. CUFX will help standardize credit union technology and platforms so that integration and innovation can occur much easier in the credit union space. The more credit unions signed up for this initiative, the more leverage the industry will have to push cores, networks, and platforms to adopt our rules and help us be successful.
Now that you know the 5 things every Credit Union Board wants to see in 2015, you’re ready to start planning a strategy for next year that will keep your CU relevant with your members and make your board of directors happy.
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