The NAFCU Journal March-April 2020 - 39

If you buy the notion that platform
banking models represent the future of
banking in the U.S., then credit unions
have two main strategies to pursue in
2020 and beyond.
Option No. 1: Compete. Credit unions
can develop and implement strategies to
position themselves as the platform of
choice for their members' banking needs,
delivering the experiences consumers
are asking for, and earning the types of
high-engagement relationships with their
members that market-dominant platforms in other industries have developed.
Option No. 2: Cede the member
experience. By going the route of
some of the aforementioned regional
banks, credit unions can integrate their

products and services into what are
really competing platforms. This strategy can help credit unions survive,
and in some cases even thrive, in the
near-term. In the long-term, though,
this strategy leads to the erosion of
member-credit union affinity and furthers the commoditization of the
traditional banking products and services that credit unions offer. Look no
further than Credit Karma's marketing
materials for evidence of this commoditization: They highlight the fact that
your money may be moved to one of
Credit Karma's other network banks to
earn you a better rate.
If Option No. 2 seems unappealing, then
how can we, as an industry, support
Option No. 1?

As a service provider in the credit union
market, we believe one of the first things
credit unions must do is firmly establish
ownership of their member experience.
In practice, that means you cannot cede
the member experience to a third party;
it's time to insist that the credit union
controls the delivery of its own products
and services through its own platform.
This will require a shift in service
provider-credit union relationships
as well, but it's one that we, as service
providers, can and should take willingly
if it will ultimately drive the success
of our credit union partners in 2020
and beyond.
Jeff Chesky is president and CEO
of Insuritas.

NAFCU Compliance,
Risk & BSA Network
Connect. Share. Discuss. Grow.
Join NAFCU's free,
member-only online
community exclusively for
compliance, risk and BSA
credit union professionals.
Learn more:
nafcu.org/compliance-net

THE NAFCU JOURNAL MARCH-APRIL 2020

39


http://www.nafcu.org/compliance-net

The NAFCU Journal March-April 2020

Table of Contents for the Digital Edition of The NAFCU Journal March-April 2020

The NAFCU Journal March-April 2020 - Cover1
The NAFCU Journal March-April 2020 - Cover2
The NAFCU Journal March-April 2020 - 1
The NAFCU Journal March-April 2020 - 2
The NAFCU Journal March-April 2020 - 3
The NAFCU Journal March-April 2020 - 4
The NAFCU Journal March-April 2020 - 5
The NAFCU Journal March-April 2020 - 6
The NAFCU Journal March-April 2020 - 7
The NAFCU Journal March-April 2020 - 8
The NAFCU Journal March-April 2020 - 9
The NAFCU Journal March-April 2020 - 10
The NAFCU Journal March-April 2020 - 11
The NAFCU Journal March-April 2020 - 12
The NAFCU Journal March-April 2020 - 13
The NAFCU Journal March-April 2020 - 14
The NAFCU Journal March-April 2020 - 15
The NAFCU Journal March-April 2020 - 16
The NAFCU Journal March-April 2020 - 17
The NAFCU Journal March-April 2020 - 18
The NAFCU Journal March-April 2020 - 19
The NAFCU Journal March-April 2020 - 20
The NAFCU Journal March-April 2020 - 21
The NAFCU Journal March-April 2020 - 22
The NAFCU Journal March-April 2020 - 23
The NAFCU Journal March-April 2020 - 24
The NAFCU Journal March-April 2020 - 25
The NAFCU Journal March-April 2020 - 26
The NAFCU Journal March-April 2020 - 27
The NAFCU Journal March-April 2020 - 28
The NAFCU Journal March-April 2020 - 29
The NAFCU Journal March-April 2020 - 30
The NAFCU Journal March-April 2020 - 31
The NAFCU Journal March-April 2020 - 32
The NAFCU Journal March-April 2020 - 33
The NAFCU Journal March-April 2020 - 34
The NAFCU Journal March-April 2020 - 35
The NAFCU Journal March-April 2020 - 36
The NAFCU Journal March-April 2020 - 37
The NAFCU Journal March-April 2020 - 38
The NAFCU Journal March-April 2020 - 39
The NAFCU Journal March-April 2020 - 40
The NAFCU Journal March-April 2020 - Cover3
The NAFCU Journal March-April 2020 - Cover4
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