Credit Union Magazine - January 2009 - (Page 20)

THE WRIGHT STUFF Compete and win with an unrelenting focus on the member. Soon it will be the Chinese New Year—the Year of the Ox. I’m told the ox is “the sign of prosperity through fortitude and hard work.” It’s a born leader, is dependable, and has an innate ability to achieve great things. As one might guess, such people are dependable, calm, and modest. Like their animal namesake, they’re unswervingly patient, tireless workers, and capable of enduring hardship without complaint. Following the dramatic economic events of 2008, it’s clear these leaders will be in demand as credit unions and financial firms of all sizes re-examine how they do business and use technology to keep pace with continuing changes: u Intense industry consolidation and structural change continue to squeeze operating margins and intensify the need for business growth and improved operating efficiency. u Rapid technological advances, especially those linked to online banking and payments (in all their forms), have created new service delivery channels and new expectations for information availability. u Regulatory demands for better risk control, more transparent reporting, and stricter corporate governance are forcing heavy technology investments to enhance data monitoring, analysis, and reporting. u Member demands are growing even in the face of a prolonged recession. Members want immediate, anytime, any-channel banking access, customized to their unique needs. If they don’t get it, they’ll 20 CREDIT UNION MAGAZINE The Year of the Ox Mark Sievewright turn to the competition. privacy issues such as data security, identity theft, and phishing are highly publicized and alarmingly commonplace. In the face of these changes, new strategic imperatives now drive the industry. Credit unions must: u Reorient delivery to focus on the member, not the product or transaction—differentiating through service and relationship-building. u Analyze member-level information across product sets, to serve members with the right services at the right time. u Accelerate adaptability to increase speed to market and deliver services anywhere, anytime. u Enhance risk management and regulatory compliance through increased automation, accountability, disclosure, documentation, and reporting. u Use technology not only to cut costs and increase productivity, but to generate new revenue—and build an effective and efficient framework for tomorrow. Above all, credit unions can an compete and win through an unren lenting focus on the member. Comr. petitors push hard to increase wallet e share and drive organic growth, and wth, many focus strategies (and technolechnology investments) on improving ing delivery channel and distribution ution capabilities. Most of the large banks today are day highly adept at dividing customers omers into segments and creating products—or value propositions— — for each one. Many of these banks have created a deep, analytical understanding of how customers in these segments prefer to transact their financial business. Additionally, u Consumer uJANUARY 2009 ucuna.org the more-progressive banks assess the relative profitability of customers and segments, and their potential lifetime profitability. As chairman of a national retail banking forum, I’m in contact with many industry professionals who believe financial products are “easily copied commodities” with marginal differentiation to consumers and businesses. The service and relationship experience becomes the differentiator. It isn’t just about price. A member-centric credit union revolves around its members. These credit unions will: u Strive to delight members again and again; u Design the right products for the right members; u Knock down walls within their operations and avoid “silos”; and u Make decisions that resonate with members, first and foremost. In this Year of the Ox, be the ox at your credit union. MARK SIEVEWRIGHT is corporate senior vice president, strategic marketing, for Fiserv Inc., Brookfield, Wis. Contact him at 508-242-9477 or at mark.sievewright@ fiserv.com. http://www.cuna.org

Table of Contents Feed for the Digital Edition of Credit Union Magazine - January 2009

Credit Union Magazine - January 2009 Contents On My Way Leading Edge Spotlight President's Perspective Game Plan Washington Insider Wright Stuff Executive Suite Reverse Mortgages Come of Age Six Merger Myths Leading-Edge Lenders TwentyFour/Seven Bankruptcy Compliance Tools of the Trade Trendlines Rates & Ratios Council Corner Shoptalk System Scan Marketplace Branching Out Advertiser Index

Credit Union Magazine - January 2009

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