Oct. 21, 2013


  • The single largest opportunity (and challenge) in this sector right now that I'm seeing is one of business model innovation. In part that will be driven by disruptive behavior change on the outside (e.g. the PFM and disintermediation mentioned), but the real opportunity is to see ahead of the inevitable changes and decide where the opportunities reside within shifting the business model itself. In the disintermediation example, it's a non-starter. In the existing business model you either ease the process of the PFM tools through more complete access to systems (API's) and become that 'utility' to drive customer growth, or you try and block and tackle by having your own PFM (to date, a losing proposition in all industries w/ similar issues. Travel/Hospitality comes to mind for example). Being relegated to a transactional utility isn't the worst model if tweaked appropriately, but most have a hard time dealing with the sense of a loss of customer control. But there *are* other options, they just require dealing with some fundamental business model investigation which can be just as uncomfortable (understandably so). Credit Unions in particular have an advantage in that their customer demographics (age specifically) give them a bit more time to be prepared, or as I would suggest, an opportunity to capture new market share from the younger generation if implemented properly. Cheers, Matt Ridings - SideraWorks Organizational Transformation
    Matt Ridings
  • I applaud David Mooney for venturing out of the C-suite and keeping his finger on the pulse of innovation within the credit union industry.
    Todd Nelson