By Randy Karnes, CEO, CU*Answers

Momentum is picking up around the idea of aggressively developing an ownership
community as a key credit union strategy and tactic. The more credit union professionals see that it takes active owners to start and sustain credit unions, and passive owners to end them, the more they are seeing active owners as the heroes in their credit union’s story. Add to that the growth of data and demographics in credit unions, and who knows? Maybe categorizing and cultivating members who think and act like owners could be a long-term trend in credit unions’ ongoing operations.

The Underground Community is a group of people who feel passionate about the possibilities for credit unions that strengthen and highlight their differentiators. Won't you join us?

The fly in the ointment? It takes work, and as we know in credit unions very few people trust that work and sustained efforts are worth the effort without a clear return on investment. It’s an accounting thing or maybe an underwriting thing, but it just seems like credit unions want the black and white ledger calculation telling them it’s ok to expend the effort or risk their members’ money on such things.

Here is where it all falls apart: We will spend all kinds of at-risk member money to attract potential members to our products. We love the high of a purchase or a ‘yes’ to our service and revenue generating products. We love the black and white accounting of something offered, something taken; there is a buzz in the value exchange. So, can we sell consumers on the idea of ownership? Something that gives us all a buzz and the consumer buys into!

The more credit union professionals see that it takes active owners to start and sustain credit unions, and passive owners to end them, the more they are seeing active owners as the heroes in their credit union’s story.

We need to craft a different future, even if it is only for the credit union professionals’ benefit. Members understand that ownership generally comes with a transaction, but the $5 par deposit as an ownership transaction just does not cut it anymore. It’s forgotten as soon as it’s completed as part of the cost of opening an account. What then? How do we make ownership real in the minds of members, beyond a simple one-time exchange? Stock? 

Either way, an active ownership community within our overall member community is an asset! That asset has been undermanaged for years if not decades as credit unions have fought to develop their consumer communities. It may take a data analytics revolution to shine a light on the demographic and the value of these members, but as more and more credit unions face moments when only an owner can make the difference, I hope it is not too late to do the work to turn the tide for many of the credit unions that are learning the difference between agents, consumers and owners!