Switching to a Community Charter Does Not Mean They Will Come
Throughout the past 10 years, many vendors and CUSOs have witnessed credit unions convert from SEG-based charters to community-charters. This change involves adjustments for both the vendors and CUSOs. And for the credit unions themselves.
"There are significant pros and cons to the charter-change question that need to be heavily weighed by credit union executives and boards," said Lisa Renner, CEO of CU Holding Co. LLC in Lenexa, Kan. "Just because you change the charter, it does not mean they will come."
"This broader and more diverse member base requires that the credit union have additional options and delivery channels in various areas, including business intelligence and marketing, in order to assist the institution when communicating and promoting to various member segments effectively," McConney said.
This includes self-service, particularly in the areas of Gen X and Gen Y, he said, business services for small businesses and outsourcing to help offset many of the day-to-day burdens credit unions are currently facing.
"Like a football team, each player has critical personal goals, but the championship belongs to them as a team," Jacobson explained. "The team provided the ability for the individual to succeed. Many in the banking community believe community charter credit unions will cannibalize themselves. However, our credit unions did not forget that gaining market share as a movement and to continue to build the credit union brand as a whole continues to be critical to them individually."
Jacobson agreed that the transformation of credit unions from SEG-based charter to community charter comes with many new challenges but said that GrooveCar's ability and the credit unions' willingness to maintain this cooperative environment in spite of these challenges has paid off.