Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Financial Columnist: Innovate To Increase Marketshare
SAN FRANCISCO (2/25/13)--Credit unions must take an innovator's approach to increase their marketshare and disrupt the commercial financial industry with low-cost, high quality alternatives to existing products and services, says a financial technology columnist.

"Credit unions have to popularize great products that banks would never dare to launch for fear of cannibalizing existing revenue streams," wrote Ivan Schneider, a columnist specializing in financial technology for Enterprise Efficiency.

Credit unions rely too much on the concept that they are superior to banks because of their community focus, ethical lending policies and member-owned structure, Schneider said in the column, "Advice to Credit Unions: Innovate or Die." By sending that virtue-based message, credit unions create the expectation that they must only maintain service levels on par with commercial banks, he said.

"And by that thinking, credit unions will stagnate at 6% market share forever," Schneider wrote.

But while credit unions for the most part lack the resources to develop new technology themselves, they are great proving grounds for new technology, Schneider wrote. Financial technology is full of startups and established providers with new approaches to core banking, multichannel management, mobile access, branch reconfiguration, "and other powerful and potentially disruptive technologies," he added.

"If credit unions intend to shift financial power away from big banks, there's no quicker route than for credit unions to discover a better technological formula for serving customers," he wrote.

The main challenge is that credit union leaders remain open to new ideas and pitches from industry vendors, Schneider concluded.

To read the full article, use the link.
RSS print
News Now LiveWire
Maine's patent troll bill has become law. Read more in Monday in @NewsNowLiveWire
2 hours ago
Wash. DFI discusses serving legal marijuana businesses with @NWCUA http://t.co/3kw79HJUYF
2 hours ago
Both @CUNA @NAFCU urge extension of #RBC extension period http://t.co/FWMcvlwHPM
3 hours ago
With help from a #creditunion, one NY-based org. helps pull public housing residents out of poverty #newsnow #CUNA http://t.co/ZOeZVPPyT1
4 hours ago
Arts-n-crafts store Michaels confirms data security breach: 2.6 million cards between 5/8/13 and 1/27/14 HT @Reuters http://t.co/GDL10VHyQ4
4 hours ago