Member Gateways Blog

The questions that exist is how do we retain and attract electronically oriented high balance savers against the ING, E-Trade and HSBC’s.  We start by creating a competiting proposition that capitlizes on the high rate they desire and adds value over and above the competitiors value proposition.  The intagibles that we already have are a brand that they know and trust and the delivery channels for transactions.  We need to simplfy our offerings and fulfillment mechanisms for the members and add value beyond the interest rates being offered.  A couple of options could be excess share insurance, rewards, free checks.  We do not necessarily have to fully match rates and we could possible get by with requiring a minimum balance to insure the neccessary balances to reach margin expectations.  Primary operational challenges will be cost structures and dissintermediation. 

Imagine the opportunity to build a virtual credit union from scratch.  Better yet, would you like to be able to build a credit union with products, pricing, delivery channels and support alternatives directly targeted at a specific demographic or psychographic segment of your field of membership?  Consider it a subsidiary or branch operation of your credit union but make it special for what ever group you build it for?  Drive SEM generated leads to this new virtual branch built to specifically meet the needs of that marketing effort?  Build a virtual solution that gives you the flexibility to compete with ING for the saver segment, or meet the special needs of older members, women or small business owners?  The permutations are endless, valuable and essential to the growth of new membership and depth of relationship with current members.

What are we doing at this stage?  We are just starting to build a series of templates that can be used by individual partner CUs as the basis for their own designs.  We are leveraging the collective intellect of the group to give a leg up to any of us adopting this strategy.  If any of us want to build a unique virtual delivery channel to serve to, let’s say, serve, savers, they can use our shared work product as a starting point.  Since this work is out here on our blog, they can even ask for our help and new ideas as they refine their solution.  What we are doing at this stage is meant in no way to produce the final look and feel for any single group, but rather to be the seeds for the more definitive work to come and be performed by an individual partner or collectively.

 A side benefit is that we can begin to identify, within these start-up templates, opportunities for our strategic partners to be part of the solution.  How can GSG, CFS, Experion or CU Realty be integrated into what we are building? Can Co-operative Payroll or CUMA be part of the virtual credit union product or service offerings?  Another key consideration is the perceived value of your virtual branch as a place to build a social network among the targeted group. That’s exactly what Zopa is doing for us.  If you can build that perception of added value, other possible business partners in the internet environment will want to have access to your network for their products and services or vice-versa be willing to bring their network volume to your site, as possible new members. ( See the article about young Seattle professionals forming a network)

 Where do we start?  I suggest with a blank flip chart, or better yet blank blog page.  Who are we building this virtual credit union for?  The list is endless: women; Gen Y; retired or laid-off  SEG employees; savers; investors; teachers; specific SEGs; geographic locations; members with bad credit, no credit or great credit, merged credit union members, etc., etc, etc.  Pick one and let your imagination run wild but keep moving onto the next step, business process design.

What are the working components of this new virtual branch?  What kind of transaction capabilities do we need, what products or product menus are we going to be focused on, what pricing models will we be using, what kind of tools, education and information might make the site stickier and attractive to current and new members? 

For example, if we wanted to create a virtual credit union targeted to small business what are the features, benefits, tools, links, etc. we would require?  Do we only have our business services products available or do we include some of our consumer retail services as well? What kind of links do we offer to education about building a business plan? Links to SBA? What opportunities do we have to provide product information about 401(k)s other small business investment options from our partner CFS, commercial insurance from GSG?  How  about adding the business advisor from Experion or payroll services from Co-operative payroll?  Do we offer different pricing models on consumer products like a personal auto loan to a small business owner who is using multiple business services products?  Does the site use e-mail integration to support fast, easy and convenient ( for the owner) communications to the credit union, small business accounting tools linked to on-line transactions, a blog that allows small business members to share ideas and build networks among themselves? Does the site have the capabilities to become its own social network of small business owners, identified with your credit union?

How do you integrate your virtual site with strategic partners and existing service channels? Do you expect all services to be delivered via the web or do you want to be multi-channel? What opportunities/challenges does this virtual branch present for shared branching, card processing, call centers?  A very important important question to ask ourselves is, who is going to manage and own the responsibility for this virtual branch built just for small business owners?

The primary objective of this MG exercise is to not limit your vision.  Remember, we’re outlining what we want to be best of breed, web-based solutions.  No holds barred, no idea to silly to be explored.

What are some of the possible segments for us to build a virtual credit union around?

• Gen Y
• Women
• Boomers
• Savers
• Borrowers
• Small Business owners
• Specific Professions
• Retirees of a specific SEG
• A merged field of membership
• Credit Challenged
• Young Students
• Laid off Employees
• Members with repriced ARMS
• High Net Worth Investors
• A specific geographic area
• New College Students

Let me know which of these interest you or of any other that is strategically important to you and your credit union and we’ll create team at the partner meeting that will start to outline the features and components for a targeted group.  Remember you don’t need to be an Internet expert to do this, just start being creative about how you would build this new credit union without worrying about any of the usual constraints.