The credit union industry has made excellent member service acornerstone of our business model. For current credit unionmembers, this approach seems to have worked; according to a Filenestudy, credit unions outperform banks for member/customersatisfaction. But that's the current membership, and while they saythey love their credit union, it hasn't translated into increasedmarket share. If credit unions want to grow as an industry, ourdefinition and delivery of service must evolve.

Market research indicates areas credit unions need to improve.First, a secret shopper project by RateWatch and IntelliShopindicated that shoppers in search of a new financial institution,after interacting with staff at both banks and credit unions, ratedthe service higher and felt more confident about big banks. Whatare we missing with these new people if current members rate us sohighly?

In part, it's the initial sell. It is no secret that creditunions are particularly averse to selling anything. We don't wantto push members into products they don't want. However, the secretshopper study also found that credit union representativesoverlooked asking crucial questions to help determine the bestproducts for the member. With banking switching to electronicdelivery channels, opportunities to talk to members are waning. Itis critically important that we make the most of meetings with newmembers. If we fail to promote the features and benefits of ouraccounts, we fail to communicate our value.  

But it's not just a sales culture that's missing. A survey ofconsumer financial preferences found that convenience was thebiggest factor preventing big bank cusomers from switchingfinancial institutions.  Credit unions need something thatwill appeal to these members: technology.  

Credit unions must embrace technology as a part of our newservice strategy. We've been too slow to incorporate mobile bankingand personal financial management tools. These products coupledwith features like ATM alliance networks, would enable creditunions to provide members better access. Convenience,accessibility, and efficiency are becoming benchmarks of goodservice. 

Sales, technology and service are not mutually exclusive. Allthree working together will help us appeal to a wider range ofconsumers, and then following up with more traditional service. Isthat really so different from the mission we've had all along? 

Erin Steffen is an EFT/loan processor, Horizon Community CreditUnion in Green Bay, Wis.
Contact 920.433.0122 x [email protected]

The Cooperative Trust is a grassroots organization ofseveral hundred young credit union professionals. Opinionsexpressed are the personal views of the author.