Are the days of simply creating back office efficiencies becoming old hat as credit unions continue to generate ways to remain relevant to their members?
Jeff Russell, president/CEO of TMG Financial Services, said he believes now is the time to explore other alternatives. Specifically, credit unions need a new model that can leverage the scale necessary to compete in a global marketplace with the local service that matters to the member.
"So what if we outsourced our balance sheet and focused on how to provide the best product or service for our member?" he said. "What if we created a network of vendors-CUSOs and other businesses-that allowed us to continue to provide fair, competitive products to our members that were truly innovative, collaborate solutions, rather than simply creating back office efficiencies?"
Several models, as seen in the charts below, may offer other ways to collaborate on the road to building capital and liquidity. Russell said the concepts are adapted from many conversations and brainstorming sessions with leaders in the CU industry.
The ideas are intended to "spur conversations about how we set aside a century of inertia and change the game and in the end better serve our members and our industry."
"We talk about collaboration, but we need to take it up a notch to where collaboration doesn't just happen in the back office, but happens in the front office and on our balance sheet," Russell said.