Is “Silence” The Newest Credit Union Fee To Hit Consumers ?

Classic Look Back
I have reposted this blog entry from earlier as I  think it is perhaps even more relevant to our times. Big Banks are looking for new ways to separate the average consumer from their hard earned money. Credit Unions not only need to resist this trend but need to make sure they are vocal about the real choice they offer each person who lives, works or worships on Main Street. 


What Will Be the New Strategic Flavor of the Month
A few months ago I had the chance to listen to a presentation for credit unions on how to increase growth and revenue. As the presentation continued ideas would surface that the moderator would add to a flip chart page. The ideas ranged from increasing fees for convenience services, creating virtual kiosks for remote branch networks, and moving into social media. All of these are worthwhile ideas and they all have a place on the map when credit union leaders talk about strategy. What never made it to the flip chart was accountability or performance metrics. Briefly the topic of sales came up (the moderator mentioned it) and quickly segments of the audience voiced their discontent with the idea of proactive sales within the credit union space.

Ever Feel Like A Stranger in a Strange Land
As a reformed banker I was quite on the issue. It felt like one of those weird moments when you see a couple you know start arguing and you have an opinion but don’t want to intrude on the conversation. Yep…it just felt awkward. I wanted to engage in the conversation as the “anti sales” segment of the audience clearly marked their position in the ground. They did not want their employees to sell at the member expense. No product pushing. No individual incentives. No one should be in a position to have to sell or risk being fired. As each point was articulated I could see heads nodding in agreement in unison. I agreed with every point being made. All of those things should be taboo in credit unions

Soon the topic turned to education and how members of the audience felt that credit unions needed to do a better job of working with their SEGS (select employee groups) and explain to members how they could save them money on auto loans and increase their savings rates. The mood was visibly different as more and more audience members agreed that SEGS and younger members were of vital concern to keep credit union membership growing.

To me the disconnect between the two positions could not be more clear – how could so many people agree with SEG education and involvement and young adult marketing efforts (Facebook, Twitter) and not consider the proactive use of sales in a credit union friendly way? Then it occurred to me what the difference was. It was a matter of perception and word choice.

For many credit union advocates the idea of adopting any bank like behavior is moving in the wrong direction. Sales being the very worst of the bank behaviors they want to avoid. After all wasn’t it Big Bank “sales” that put people into subprime mortgages with option ARMs? Wasn’t it Big Bank “sales” that credit card companies engaged in when they sent out mailer after mailer encouraging people to take on more debt and live beyond their means?

The answer is “Yes” it was "selling" that did that… and that is exactly why credit unions have to speak up and talk to their members about the products and services they offer. People accept bad advice most often when they have nothing else to compare it to. It is the absence of having the credit union voice that most quickly leads to our member being sold on a product that does not help them. It is allowing members to hear only the Big Bank sales presentation that leads to members being in positions they can’t climb out of. How would your member ever know they don’t have to pay 22 percent on a credit card unless you tell them?

I think now more than ever as people look for ways to make lower paying salaries stretch further credit unions have a responsibility to proactively engage their members in conversations about the choices they have. Call it member advocacy or any other term to fit the culture. Bottom line our collective silence in not engaging our members only hurts them. Our silence and our aversion to the concept of sales only come at our member’s expense...a hidden fee on our membership.

Practical Application:

• How do you get your staff engaged in proactively engaging members and helping them improve their savings returns?
• How do you get your staff engaged in helping members restructure their debt to save them interest?
• What impact would you create for your credit union? Would it help you lower your dependence on non interest income?
• What is the opportunity you are leaving on the table because your staff is reluctant to move beyond being “order takers?”
• As Big Banks have turned their branches into retail shops with high pressure sales tactics have you allowed  your employee “silence” become the newest member fee you have passed onto your membership?