MADISON, Wis. (1/2/13)--A new report, "101 Things: Credit Union Insights from the Filene Research Institute," offers "easy-to-digest" highlights from 12 months of Filene reports--an easy way for credit unions to begin the new year armed with strategic insight.
Among the highlights from each of the nine areas covered in the report:
- Strategy and policy: Credit unions could improve organizational performance by diversifying their noninterest revenue streams, decreasing the variety of deposit products offered, and questioning the effectiveness of a diversified loan product strategy.
- Credit unions as cooperatives: Patronage refunds are the necessary tool that demonstrates to members that the cooperative is socially and fiscally responsible with the member's money.
- Lending: The average American household lives in the same home for only seven years. That implies that most Americans, or a very large swath of Americans, could do better with a shorter-term fixed interest rate, which would result in lower monthly interest payments
- People: High-performing middle managers want to be given the vision and the mission, participate in goal development, and then be allowed to do their thing.
- Consumer behavior: Consumers, especially low-income consumers, are much more likely to cycle in and out of debit and credit cards and the institutions that issue them than to give up on cash.
- Marketing: Credit unions that dedicate eight or more hours per week to social media report the highest success rates.
- Credit union profitability: Research shows that the top 30% of members contribute 110% to the bottom line, while the bottom 10% don't merely fail to contribute, they actually destroy profits. On average, members who connect with the credit union through online channels are 35% more profitable than those who have only an offline relationship.
- Innovation: Only 27% of executives responding to a McKinsey Global Survey said that their companies are effective at holding leaders accountable for executing tactics that support innovation.
- Governance: Good governance in both corporations and credit unions is, in essence, the leadership structure and the complex system of incentives, checks and balances that makes sure that the organization creates long-term, sustainable value.
To download the report, use the link.