How Credit Unions Can Remain Successful in an Evolving Financial Landscape

I entered the financial industry a few months before the infamous “Black Monday” stock market event in 1987. We felt the ripples all the way to my neck of the woods in Eastern Washington. Not only do those types of events have a material effect on the financial industry as a whole, but they also affect the national mood and our confidence levels. Confidence – as we’re witnessing even today with recent bank failures – is often more difficult to rebuild than the market. In many ways, as I look back on my career I’ve been most thankful for how those challenging times shape our thinking. It forces us to innovate and create programs that restore trust.

In the 36 years since I started my career as a junior accountant at Gesa Credit Union, it’s safe to say just about everything in our industry has changed – technology, the types of products we offer, the dynamics of remote work, the landscape of competitive offerings and more – but one thing remains completely unchanged: The needs, motivations and desires of our members. Technology changes and we have to stay on top of that to evolve and innovate, but equally important is doing the work to understand the state of our members. Just like I mentioned about the recovery of 1987, it’s the confidence side of things that can often be more fragile.

In order to continue to move forward successfully, credit unions need to always look for new, creative ways to best serve our members. Below are a few tactics that I’ve learned throughout my career that have influenced how I lead our team at Gesa as the industry continues to advance.

Go Where the Puck Is Going, Not Where It Has Been

Wayne Gretzky’s famous quote translates well to our industry – we have to anticipate the needs of our members even before they know they are needs. While it’s always important to listen to our members directly and see what their needs are, sometimes this process can take a lot longer than desired. By the time you are able to collect feedback and begin to put a program or service together that addresses it, it could potentially be weeks or months before members receive what they need. Put yourself in their shoes – along with the financial stress you’re already feeling, you’re likely going to become increasingly frustrated if you feel like your concerns are not being heard in the moment.

One way to get ahead of this is to learn how to anticipate what your members need before they ask. One way you can do this is by looking at what your data is telling you. Look for common themes or trends that are happening across your members’ finances. This can help better inform your institution’s decisions around lending or product offerings, or even what financial topics you need to continue to educate your members about.

Diversify Your Products

Every one of our members needs something different from us. They are their own individual person, and they should be treated as such. The person who is looking to have no monthly fees on their accounts may be different than the person who is learning how to budget for the first time, and they are likely different from the person who is looking to grow their business.

Because each situation is unique, it requires a unique solution. Offering a diversified portfolio of products is a great way to show that not only do you understand what your members need, but that you’re willing to expand your services to better serve those needs as they change.

For example, at Gesa we just launched several specialty deposit products, each tailored to address the diverse needs of our commercial members in Washington, Oregon and Idaho. We learned that our members working across sectors like law, real estate and nonprofits needed different solutions than what were originally providing, so our team worked hard to bring these new products to life. All credit union members deserve that kind of personalized service.

Stay Current on Trends and Spread That Knowledge

Keeping a pulse on the market is key to making sure you’re responding appropriately to any new advancements or changes. Having the most up-to-date information about the industry as a whole, including the latest technology advancements and financial education findings, can also have a great influence on member offerings and services. It also helps to have a culture where trying something new and it not working as planned is OK. If you are fearful of failure, you will not try new things. It doesn’t matter if you’ve been in the industry for five years or 55 years, there’s always something new to gain an understanding of. Gesa just turned 70, and we still feel like we’re always learning.

And we don’t just reserve these findings for our leadership team. We make sure to educate all of our team members on the latest industry information, whether they’re at our headquarters or one our branches. That way when they speak with our members, they are well-informed to help them find the best financial solution possible. Our team members are also able to apply this information to better their own finances. It’s a win-win.

Keep Members at the Heart of What You Do

No matter how much the industry may change, one thing should always remain the same: Our members are at the center of all we do. As community-focused institutions, our purpose is to serve our members and empower them through financial education and valued financial services.

By keeping your members as the focus when it comes to every decision you make, you’ll create solutions that really work for them. That’s why our members choose us every day. Because we’re not just focused on the products, but on the people.

While the financial world continues to change and evolve every day, credit unions have a unique position in the industry as member-owned and member-focused institutions. Combine that with a drive to remain innovative, and we can continue to move forward successfully and take our members to new heights.

Don Miller is President/CEO for the $5.4 billion, Richland, Wash.-based Gesa Credit Union.