Is any one else getting as overwhelmed and confused as I am with all the new players entering the exploding world of credit union high-tech and the growing list of complex services they are developing and bringing to market? Is it just me, or does it seem like with each new day comes another announcement that some start-up organization has found a new and improved way to meet needs that many credit unions haven't yet figured out they have? Add to them, the new approaches being taken by existing national groups serving credit unions that have recently jumped on the dot.com and e-bandwagons with offerings that appear to be beyond their original purposes. And if all of those aren't enough, add the growing number of providers well established in the banking industry that have only recently discovered the booming credit union industry and are anxious to tap into the perceived gravy train. Despite comprehensive news reports and regular backgrounder pieces in Credit Union Times, it is getting difficult if not darn right impossible for some of us nontechnical types to keep straight who does what, how, with whom, at what cost, and how it all fits in with whatever else a credit union is already doing to remain competitive. Simply put, you can't tell the players without a program. Someone ought to develop and make available a comprehensive listing of all today's players. It should list who they are, and tell who owns them, with whom they are allied, what makes them different, and what exactly it is they do. To be of any value, such a list needs to be kept up to date on a daily basis. Old descriptions no longer apply. Even established organizations like CUNA and U.S. Central already have, or are just now, launching new programs. And there are many brand new, in-house, players. For example, MEMBERS Development Company LLC is one of the newest and most ambitious efforts. As its name clearly says, its purpose is to develop broader financial products and services for credit union members that can compete with emerging competition. That competition has recently been made stronger with the enactment of banker-friendly laws and regulations. Although just getting underway, MEMBERS Development Company seems to be doing most everything right so far. It is structured to be nonpolitical. It is unique and not, as some observers have already suggested, a recreation of the old CUNA Service Group. MDC is controlled and partially financed by credit union owners (31 CUs and six CUSOs own 51%). It also has the financial backing of the national credit union organization with the most financial and staff resources, the CUNA Mutual Group (49% ownership). MDC's agenda of possibilities for development is already a full one. It ranges from a broker/dealer ownership and direct channel low-load mutual funds, to a member-directed asset allocation program and off-balance sheet lending program. The organization has excellent potential to quickly bring competitive and state-of-the-art credit union member offerings to market that are attractively priced and packaged. There are some potential roadblocks, however. MDC's CU owners need to remember that the credit unions, not the credit union CEOs, are the actual owners. Also, the group's leadership needs to get off its secrecy kick. Credit unions have a right to know how their money is being spent. And finally, MDC, like all the other new and existing groups wanting a slice of the expanding credit union industry pie, need to avoid duplication. For example, scratch "branding" off the list of possible initiatives. There are already enough other credit union organizations proving that they don't understand the concept of branding. MDC resources could be better spent elsewhere. Also new on the scene is the Center for Credit Union Innovation (CCUI). It was known as the "incubator project" as it was being put together over the last year or so. The thrust for this one comes from CUNA, but the CUNA Mutual Group, Filene Institute, the American Association of Credit Union Leagues, and a handful of high-profile credit union CEOs also play key roles. CUNA CEO Dan Mica describes the new venture as a way to move away from just publishing papers (as in Filene Institute) to actually developing products. Like MDC described above, the new group's management also has ties to CMG. MDC's CEO is a current employee; CCUI's is a former CMG staffer. Unlike MDC, the CCUI appears to have a cumbersome structure, too many masters to please, a potential for politicization, and no clear program of work. It is, however, still one more new organization to keep track of that is looking for innovative ways to keep credit unions competitive. Meanwhile, U.S. Central has created a new subsidiary (Corporate Network eCom, LLC) to develop an e-initiative on its own and by partnering with other organizations also already involved with credit unions, some still to be revealed. Just announced, however, Payment Systems for Credit Unions (PSCU) is now in an alliance with CNE to market and support its Internet banking product, Memberstreet. Some feel that this is just the first step in the emergence of a major new player. CUNA itself is of course already well immersed in e-commerce with their up and running alliance with FundsXpress. And then there is what's left of the old CSG and its new offshoot, CUNA Strategic Services. Of course the number of outside players continues to grow very rapidly. This is especially true in such high-tech areas as portals, home banking, aggregation, Internet access, on-line transactions of all types, customized content, and tons more of similar developments. If all this sounds like I'm confused, I think I just proved it. No wonder I didn't understand half the commercials aired during the most recent Super Bowl. Quick, where's my program?
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