How to talk up credit unions so more people buy in—and benefit. By Heidi Overman
The most viable financial model in America today is the cooperative credit union system. So why isn’t the good news of credit union philosophy resonating with American consumers? How can your credit union best trumpet its story—and in doing so, boost credit unions as a movement? Alix Patterson’s preconference workshop before the opening of Directors Conference in December will help participants answer these questions. An expert with data and the use of storytelling, Patterson is chief operating officer of Callahan and Associates, Washington, D.C. Think about it. The credit union movement stands out because it operates solely to serve its members. There are no shareholders pushing for higher returns at the expense of patrons. The board of directors is composed of members. The institution’s products and services are chosen because they benefit the members. And members are not just members; they’re also owners, each one having one vote in the cooperative.They're a great option for consumers. Yet credit unions as an industry have just 15 percent of auto loans and less than 10 percent of consumer deposits. Despite misdeeds in the mortgage market resulting in massive settlements from banks, credit union mortgage market share has stagnated short of 8 percent. What gives? One-off events like Bank Transfer Day have placed a national spotlight on credit unions, and the system’s record results in 2013 go to show it’s picking up momentum. Nearly 2.4 million consumers joined a credit union in 2013—the most ever added in a single year. Lending activity hit new records with $351 billion in originations. Unfortunately, the business environment isn’t going to get any easier for credit unions. Competition from for-profit institutions is intensifying. In 2013, banks recorded their fourth consecutive year of higher earnings. They also improved asset quality. Competition for auto loans remains strong, and decreasing refinance volume means mortgage lenders have had to go after a smaller piece of the pie. You don’t have to settle for second best. Patterson's preconference workshop, "Go Tell It on the Mountain," will describe how to use the art of storytelling to showcase the benefits of the cooperative model. Credit unions support local business, drive home ownership, and even put children through college. Now, they need to draw on their stories of real-life impact to break through the clutter and come out ahead of the competition. Heidi Overman is CUES’ professional development coordinator. It’s not too late to register for Patterson’s session, slated for Dec. 7, and Directors Conference, slated for Dec. 7-10, in Palm Desert, Calif.
