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.
We discussed a microsite around the concept of Goal Setting (Affinity Plus’ Commitment Plan). Do we want members to drive this and the credit union to monitor closely – important to feel authentic and transparent – rather than the CU driving or building. Needs to be very informal. Offset marketing and compliance concerns and let the marketplace design.
It is not about Affinity’s product or service, it is about building a virtual community to bring members together to help them achieve their goals (eg Angies List concept – rate/refer – but tied back to specific member goals).
Risk to credit union is reputational, but this is already occurring anyway. How do we leverage this to our advantage. Examples of goals are very specific – building a deck, taking a dream vacation, helping someone respond to the loss of a family member. Integrity of the referral is key.
If Affinity is seen as a trusted piece of this “community”, by default the CU could expect to see growth in traditional products and services, as well as new member growth.
BTW, these comments re goal setting are not from djones – they are from Liz, Brooke, Sharon (SACU) and Dan Kampen. One way to generate excitement/enthusiasm from staff is to start with the employees, brainstorm what their personal goals are – examples – write a childrens book, go to Italy, etc. Staff voted on their top goal and then did an exercise on how to get that goal accomplished – “I know a travel agent”, “My brother speaks Italian” and so forth. After the exercise was complete, debrief and discuss how you could do the same thing for your members. Get personal. We don’t sell home equity loans, we fulfill dreams and goals.
Managing your money
Financial Planning
Credit Counseling
Tax planning
Your benefits
Health insurance
Life insurance
Unemployment benefits
Educational/Career options
Position in demand
Starting a new business
Qualodied for higher education
Local resources
Financial aid
HArvesting your relatives
Local collehes and universities
Vocational training
Local professional trade assocations
Seeking new employment
Resume preparation
Job site links
Outplacement services
Relocation services
Temporary contract works
Networking
Interview tips
Gen Y – how to attract:
Hire a Gen Y person to get their input. how this generation chooses an fi? It’s nearby, it’s on the way home. Don’t really think about it until there is a problem. ; Means of communication? Email – no, text messages – yes.
How to tap into the market and get them to talk to you – run an online survey where you donate to a charity if they respond. Use a cause like ‘green’ etc. to engage them to help them understand that we we as
credit unions are different.
Second Life is another area we need to explore to see how credit unions can become a part of this world. If they are made aware of us there then we will be in their consideration set later when they have a need.
At Colleges and Universities – recruit using kids of the same age group.
Allow customization of cards – colors, pictures, personal sayings, etc. – If it’s cool they’ll use it. Allow customization of the websites, etc.
If there is an NSF, send them a text that says “come in in the next four hours and cover the check and we won’t charge you the fee.”
In exchange for things like waiving nsf have them refer friends or family.
We’re building a site for mobile payments. This concept has enormous potential to nearly eliminate cash, the need for branches for check cashing, ATM’s. This needs to be anywhere, anytime worldwide. How does the credit union movement capitalize on this?
Parameters:
- merchant based payments
- peer to peer
- online payments/banking
- complete security
- simplicity key for mass adoption
- anywhere anytime
- cooperative network to leverage CU advantage
- Marketing/funding, this represents a huge opportunity for CU’s
X-Card Advantage
An advantage for x-Card is the support of IBM. Provides security and credibility.
$24 cost an initial barrier, that will fade over time. CU’s may fund the card due to offsetting savings from fraud losses. This savings eventually comes back as a member benefit because as a member, I’m not funding my neighbor’s losses due to ID theft etc.
Payments can be made by smart card or cell phone. X-card offers superior security.
Learn facts about the life insurance industry…
Information on the life insurance industry…
[...] and building a virtual credit union. I read the post Vic put up on the Member Gateways site (and it’s still there) and thinking why wouldn’t someone build this [...]