Top 10 Emerging Trends for Credit Unions Presented by: Sean McDonald

Today’s Goals Discuss the EVOLUTION REVOLUTION Identify the Top 10 Trends happening in our industry Where do we go from here?

The EVOLUTION REVOLUTION

Top 10 Trends New Target Markets CHANGE Management The Digital World Cross-Selling/Building More Meaningful Relationships Branch Evolution

Top 10 Trends (con’t) Getting Relevant Increased focus on VALUE PROPOSITIONS Attracting & Retaining Top Talent Leadership Changes (people AND practices) You’re either KEEPING UP or BOWING OUT

Membership Who is joining credit unions? With the intro of community charters in 1998, potential membership has increased but actual membership has not grown as expected or hoped for. In 1980, the percent of potential membership that joined credit unions was 47%. By 2013 that number had dropped to just over 8%.

ALLOW ME TO INTRODUCE…. A FEW OF YOUR FUTURE MEMBERS…..

Some Challenges…. Younger generations simply expect different things from their financial institutions We must adapt to the changing marketplace…..NOT the other way around Remember Google before it became a verb?

EVOUTION INVOLVES: Taking new trends and methodology seriously Getting VERY familiar with new technology Understanding that certain things will have to be let go Realizing that we must be hiring the best and brightest employees NOW so that we’re prepared for the future Mitigating challenges associated with change

WHY IS CHANGE SO HARD? It’s a “comfort thing” Humans are designed to evolve and change as the environment demands BUT most of this is done unconsciously. It’s only when we start to consciously resist that the problems arise. Our “flee or fight” instinct comes into play. So how do we introduce change in a non- threatening way?

INTRODUCING CHANGE Concentrate more on the WHY than on the WHAT (more on this later!) Provide as THOROUGH an explanation as possible. (Yes, you do have to justify your decisions to the people that you expect to implement them.) Provide RESOURCES and TIME but…. Clearly state EXPECTATIONS.

Thoughts…. The marketplace is simply too competitive. If people don’t get what they expect, they will look elsewhere. “The World Is Flat” But we don’t have the money for all of this!! I bet that you do!

The DIGITAL World

TACTICS Digital Marketing Cross-Selling Social Media Mobile Convenience Be RELEVANT to the generations ???????

Are These Dead??

It Depends…..

Most likely, yes, if they look like

Branches are evolving to look like

More Tactics….. Introduce potential members to the credit union industry by going where they are…. This isn’t “Field of Dreams” Speak their language….a more modern way of communicating Define VALUE and W.I.F.M. Get personal!

The Next Generation….of CU Leaders Credit unions are now staffed by people in a variety of age groups. As our more seasoned employees start to retire, they are being replaced by younger professionals. Younger professionals tend to embrace change more so than their more seasoned counterparts.

What Do They Want? These young businessmen and women are keenly interested in working for companies with clear missions, visions, and values. They want to be “in the know.” They want advancement opportunities and continuing education opportunities. But there is a dangerous trend going on – many of these younger professionals are not getting what they expect or desire working for some credit unions.

What Does This Mean? The future of your credit union is at stake! Gone are the days of people staying at the same job for decades. The average person just starting their career will change jobs more than 10 times until they retire and, on average, will work in 3 different industries over the span of their careers. Credit unions must endeavor to keep these smart and talented young professionals.

A Parting Thought on Budgets… It is very disheartening that, when times get tight, the two budgets that are cut first are the most important: training and marketing. How can you expect your business (in this case your credit unions) to prosper if you are not training your people to become better and are not marketing your services to existing or potential members?

THANK YOU!! ABSURD! Leadership “Where ABSURD! Is A Good Thing” Your Full Potential, LLC Staff & Management Training Consulting Strategic Planning www. YFPTips.com (201)