Dear Diary: Placing Bets on Mobile Payments

Dear Diary,

Anyone who has ever talked to me about when I do for a living, has probably gotten an ear full about my stance on the rapidly changing payment landscape. I am a self-proclaimed mobile payment enthusiast, and proud of it. That being said, every CEO and their mother has their own opinion on how they believe payments will evolve over the course of months to years. I believe the world needs a peon’s perspective, and the justifications behind it, because let’s face it, peons run the world, not CEOs (I’m sure there are CEO’s that would argue against that, but that conversation is for a different day).

There are so many potentially HUGE players in the mobile payment industry, from CurrentC to CU Wallet to Google Wallet, backing just one of these progressive companies is a real gamble. Fortunately, that is what I’m going to do today, place my bet, and I am going to double down on Apple Pay.
To preface my opinions, it is naive to think that there will be only one victor in this battle, however I do believe Apple Pay has what it takes to set the foundation for and shape the future of the mobile payment industry.

Without further ado here the three P’s of Apple Pay’s potential payment success.

The Protection – Mobile payments as a whole, offer an increased level of data security while processing and transmitting data. Apple Pay’s use of biometrics AND tokenization create unique layering of security. Additionally, tokenization delivers a solution to consumers who are concerned about merchant security by promising to not hold or transmit any raw consumer data. Admittedly, as the bad guys get smarter, Apple Pay will have to adapt and invent additional layers of security to continue to protect consumers, but with Apple’s smarts and innovative practices, I don’t find that to be something that will be an issue any time soon.

The Process – Human beings, by way of evolutionary necessity, are innately creatures of habit. Our current payment process/system is ingrained in our brains. We systematically reach for our debit cards, swipe them through a POS terminal when prompted, follow the same cues, and complete a transaction. To upend the payment system, and override such an established habit, the payment process needs to become substantially easier and more efficient. This is where Apple really shines.

Apple Pay is by far the most consumer conscious mobile payment system utilizing NFC technology. It’s easy, clean, and actually time efficient when making a payment considering 90% of us walk around with our phones seemingly attached to our palms. It’s tailored and designed for consumer use, and it shows.

CurrentC’s use of QR codes make this payment method cumbersome. Unfortunately while a large group of merchants is concentrating it’s time to inserting CurrentC into the lives of consumers to avoid paying interchange fees, and thusly creating a larger stock pile of capital for themselves, they are forgetting that complicating the payment process with drive consumers away from using it.

If the payment industry really thinks consumers are willing to shred their current plastics in favor of fumbling with a complicated phone app, they’ve got another thing coming.

The People – Hear me out. As I stated above, upending the current payment system, is a MAJOR undertaking. Companies have been trying for years to integrate mobile solutions into consumer transactions with little to no progress. Suddenly, Apple Pay comes along, and it’s a whole new ball game. Why? Brand loyalty. Apple’s cult following.

Apple’s brand is so captivating, that those dedicated to it, are willing to buy and try almost anything stamped with the iconic partially devoured fruit. They have the consumer base that believes so wholeheartedly in their mission, that they may actually initiate this type of drastic change in our current payment system. Belief and commitment to a vision is enough to change routine, but it will take time and repetition to actually make an impact in the wider world.

There are so many other reasons I’m betting on Apple to be the consistent front runner in the mobile payments industry, but these three major factors that I believe are going to make the difference in their success over others. This race for change is extremely exciting and it never ceases to amaze me rapidly the payment world is shifting. I can’t wait to see the outcome, collect my winnings, and double down on the next big thing.

–The Peon


Dear Diary: Are We Shackled by the Facade of our “Purity”?

Dear Diary,Purity

Today I am curiously struck by the concept of purity. This has been weighing on my mind for quite some time, and I feel as though I finally found the inspiration to unforgivingly express my view point on this issue.

As a generalized assumption, those of you who are reading this post today, could think of a handful (or more) of synonyms that might help to define the word purity or pure. Innocent, clean, uncontaminated, natural, unpolluted, or maybe even trustworthy, all of these words describe what makes the perception of purity so desirable.

For the sake of being thorough, choosing a few antonyms to help amplify the meaning of purity seems helpful; tainted, polluted, or evil.

The Credit Union industry as a whole is rooted in a rich history of philanthropy. At its core, philanthropy could indeed step in as a synonym for purity as it is defined above. However, Credit Unions exist in part (all be it, in theory, a very small part) because of money, and on more than one occasion, money has been referred to as “the root of all evil.”

So, if our roots are firmly panted in the soil of philanthropy, or purity, but we exist to translate, distribute, and peddle money, which is rooted in evil, on a scale of Gandhi to Hitler, where does this leave us? It’s hard to say, but what I can say, is that purity has left a very large opening for evil to rear its ugly head.

Purity as it exists in a lot of instances is merely an illusion, a façade, or a perception, made of hearsay. Purity creates a wall of trustworthiness in front unsavory practices or motives. When all that can be seen is this strange façade of purity, it discourages inquiry. If inquiry is discouraged, the truth becomes hidden away in a darker, harder to reach corner, and what is seen is merely a charade to maintain this falsified vision of purity.

Though Credit Unions aren’t at a Bernie Madoff level of deception, the vast majority of us, aren’t fulfilling our duties in order to continue to be considered the oxymoron of the financial world that we are perceived to be either.

Our founding cooperative principles are the definition of purity, but our execution of them, is not. Lucky for Credit Unions, when we planted our philanthropist roots, we were fertilized with a dash of innovation. With innovation comes the inevitable challenge to the status quo. Innovation can be the catalyst for positive change within the industry, a throw back to our roots, in order to continue to grow. If this fails to happen however, Credit Unions will continue down the same path of ambiguity and be considered a “cheaper” alternative to a mega-bank, and that’s it.

I would like to challenge you. At work tomorrow, as your slinging back your first cup of  much needed java, pick a process, an idea, function of, or charitable activity your Credit Union participates in, and think about it briefly. Ask yourself, “Does this follow the map our basic cooperative principles have provided us?” and “Does this help our members achieve their goals and better the communities we serve?”

If your answers are no, then your Credit Union shouldn’t be doing it, point blank. Be that innovator, that catalyst for positive change, and think of a solution. Tell someone about it. Do something about it. There will always be someone, somewhere, who is willing to listen and join your fight if you just keep searching, and there is power in numbers.

The façade of purity will never be dismantled without a sledge hammer and someone with the “muscles” to take the initial swing. Change will never happen in silence. Speak up, we need you.

–The Peon

What Jenna Marbles Knows about Marketing that your Credit Union Doesn’t.

Just like the generations that have preceded it, and in turn the ones that will follow, Gen Y is a multifaceted generation with various wants and needs, unfairly lumped together into a one size fits all demographic. Unfortunately for marketers, this has left some Credit Unions grasping at straws trying to attract this elusive group, wadding through the hordes of information collected and generated while trying to put walls around a general definition of Gen Y. Fortunately for marketers, this vast amount of data, has also shown us that Gen Y is leading the charge into the world of online interaction with their financial institution; bona fide Napoleons of the digital age.
So much of what this generation does, from socializing, to choosing a Credit Union, is all done in cyberspace. This means, that any chance the Credit Union has to create a bond or loyalty with these young members, that previously was tasked to our beautiful branches with highly trained Member Service Reps, who deliver outstanding customer service, has now been left to the website, and let’s face it, there isn’t too much that’s very personal or loyalty provoking on the glorified brochure most financial institutions use as a website.
From personal experience, while skimming an ever evolving Facebook feed, I am more likely to stop and look at a picture, or watch a video I know nothing about, than read a status update. If I can so easily skip over something written by an individual I take a personal interest in, imagine how easy it is to skip over text written by an organization online that you know nothing about.
Remember in high school, when the assigned reading material would take weeks to shuffle through, but watching the movie based on the book would put you in “C” range in 90 minutes or less? That is the importance of a Vlog.
What is a Vlog? Vlog stands for “video blog.” Basically, an audio visual interpretation of what you are doing here, but with the ability to absorb and obtain vastly more information, in a shorter period of time. A Vlog creates a face, a persona for otherwise unassigned, floating information in the form of text.
Cue Jenna Marbles. This young entrepreneur, has created a career, and made hundreds of thousands of dollars, by connecting with millions of young people via YouTube in only a few minutes at a time, creating entertaining and even viral videos. I personally subscribe to her channel on YouTube as I enjoy her quirky variety of humor.
Now maybe the content of Credit Union marketing isn’t the stuff vitality is made of, but there is something more to be said about the power of convenience when it comes to information being conveyed through the push of a button, and Gen Y is all about convenience.
I’m not implying you should create commercials or advertisements and let them float around YouTube; that would be a waste of the Credit Union’s time and money. However, using this resource to help Gen Y navigate through tough financial decisions, like giving them advise on how to buy a car, while adding a shameless plug for your loan auto loan rates, is certainly worth a little time and will help provide the building blocks of loyalty in an otherwise faceless and unimpressive online world. Make an impression, create a sense of trust, stand out, that is what your website needs to do for your Credit Union.
Obviously, a Vlog is just one small part of creating an effective online persona for your Credit Union, but it also holds other benefits for already existing members. Creating a database of informational videos to help your members with their financial endeavors creates more opportunities to strategically market products and promotions that are relevant to information these members have chosen to view. Plus, to top it all off, you’ve made things easy, and created the start to a completely online branch that functions like a branch, and not a brochure.
Maybe a YouTube Vlog seems like a farfetched marketing avenue, but it’s important to take into consideration that Credit Unions are a part of a larger financial industry, and the financial industry has this really great universal quality. So, even though your niche may seem small, remember, even a member who watches cat videos will need to buy a car someday.

Striving to Improve Culture, Not Morale.

The over abundant appearance of overworked and under appreciate employees, is currently being attributed to low morale. A lot of times, this in turn, is attributed to the recent economic downfall which organizations are still recovering from. Though this holds some truth, I believe that the shift in focus to being a result driven economy, created out of necessity in order survive this downturn, has created something much more harmful then low morale, bad culture.

Culture is an undisputed acceptance of particular actions, beliefs, and/or customs as correct or socially appropriate within a specified group of individuals.

Culture is, at its core, responsible for how successful projects, products, and people are within a society; or in this case specifically, an organization. That being said, being able to provide leadership with the intent of improving upon culture within an organization, can only help to increase morale, thusly increasing energy and productivity and cutting operational costs, making your organization more efficient, and in the end successful.

Not that I should have to explain, but poor morale can lead to budget busting employee turn around. If you are not in a hiring or operational position within your organization, you may not know how much it costs to advertise, hire, train, etc…a new hire, especially when talking about entry level positions. Not only that, but the level of absentee employees will rise in a low morale situation, causing operational inefficiencies, which are also costing the organization more money.  I could, but I needn’t go on; the connections here are clear.

Obviously, low morale can be caused by a negative organizational culture; but can a morale problem also ruin a good culture? Absolutely. I know this because Credit Unions have all the reason in the world to have GREAT culture, but from experience, not all of them do.

While morale is declining, negative thoughts become associated with work, going to work, and inevitably, your organization. Negativity becomes the norm in this situation, and if one influential person, or a person in a leadership position, takes this stance on their work environment, a virus of epidemic proportions substantiates and will inevitably spread from employee to employee before eventually becoming an organizational norm. With negativity being accepted as normal and correct because or your organizations low morale situation, a horrible culture emerges.

Luckily, culture is primarily a pattern of learned behaviors, as we can see from the example above, and can be changed to reflect your organization’s true vision and potential.

It is important here that I stress and address the fact that attempting to increase only morale while ignoring culture will never provide a lasting effect for a workplace drowning in cultural disparity. The cause of low morale is poor culture. If you do not solve a problem at its core, the root of the issue will still exist, continue to grow, and will rear its ugly head in due time. As I stated, morale is a problem with the view of, and operations of an organization, but a culture problem is a repeated and normal issue that is inherently associated with an organization.

As the word culture starts with a C, I find it charming to use that letter as a jumping off point to convey the three things I believe create good culture. Without further ado, here are my three C’s of good culture.

Confidence – Everyone needs to be told that they are doing a good job. Without feeling appreciated, and in turn confident about their performance, no employee will ever feel pride in their work or motivation to over achieve. Simply letting someone know you appreciate what they do, goes a long way in creating a positive experience in the work place. I am not insinuating that anyone needs to be rewarded for adhering to their job description, but conveying to someone that you’re grateful for their help will always improve an employee’s view on their work and their job. Just say thank you.

Communication – I have never worked anywhere that did not lack in this seemingly simple department. Over communication has been often seen as overstepping imaginary cultural workplace boundaries. Communication done in an appropriate manner will always help, and never hinder, a workplace culture. Communicating issues with an appropriate superior will help get issues resolved while avoiding “insubordination” and help to eliminate harmful organization slander between employees. In turn communicating in a way that makes the members of your organization feel connected is just as important. An interoffice newsletter with the achievements of departments otherwise taken for granted, will help connect (hey another C word!) and bond employees.  Helping employees to feel as though all of their co-workers, no matter how small their interactions with each other, are a necessary part of their workplace lives and success, will increase culture exponentially.

Conveyance – Culture will always start at the top. Without the dedicated leaders in place to convey and live the culture your organization strives to encompass, there will be no change. A lot of the time, a leader is looked at as someone who knows the most. Being knowledgeable is a trait of leader, but does not make you fit to lead. To make a good culture a permanent part of your organization, you need leaders who are willing to create more leaders. This seems contradictory to success as leader, creating someone who could succeed you, but it’s not. If the CEO or an organization trains their President to lead in a way that is beneficial in promoting a positive culture, and in turn the President leads their VPs to lead in a way that successfully corresponds to their cultural vision, and this pattern continues to trickle down, all staff is leading, and being led by, leaders of a greater vision. If the staff in your leadership positions are afraid to create more leaders, what is left other than employees who feel like peons, slave to a corporate vision they are not a part of?

When I talk about leadership, I want to clarify that I deem a leader as someone with a specific dominant yet compassionate personality, and skills to rise above and prosper in the face of adversity. With that in mind, don’t you want all of your employees to be leaders?

Improving upon culture is a long a teadious process. However, no process can be completed without the effort to initiate change. This is where morale is addressed rather than culture. Addressing as issue only once will boost morale temporarily, but finding a permanent solution which improves morale consistently, will lead to improved culture. Without addressing culture, the blind will continue to lead the blind into an irreversible spiral of punch in punch out mentality. If your staff has no passion linked to their day to day ventures, how will your Credit Union ever hope to convey the passion it has to help its members?

I leave you with this quote, because if you can’t trust a peon, you can surely trust a man with a 170 IQ.

“We must not conceal from ourselves that no improvement in the present depressing situation is possible without a severe struggle; for the handful of those who are really determined to do something is minute in comparison with the mass of the lukewarm and the misguided.” – Albert Einstein

An Aroused Member is a Lustful Member

Though the word arousal is usually associated with sexual desire, to be aroused can be simply defined as to become excited or experience excitement. Think for a moment what it feels like to experience excitement. Can you imagine the feeling of butterflies swirling around in your stomach? Now think of a scenario where this feeling bombards your senses in full force, shall we say, a first date?

It is a proven fact, that visiting an amusement park on a first date could substantially increase the chances of securing a second one. We as humans can thank what is called the misattribution of arousal for this fun fact.

This physiological concept states that when our body experiences a physical change, such as an increase in heart rate or sweaty palms, our brains may attribute this to something completely different from the actual cause. Our brains, on an unconscious level, try so desperately to make sense of these sudden physical changes, sometimes those emotions are misattributed; so in context, your date’s racing heart, that was caused by the Farris wheel, dart game, and haunted house, are now accredited the excitement they are experiencing while having such a good time with you, or simply put, lust.

Don’t believe a peon? If you would like to read more about the misattribution of arousal and the experiments used to confirm its existence, read this.

What do first dates have to do with Credit Unions?

Well, what is an account opening at a Credit Union, if not a first date?

As a potential life partner to a new member, Credit Unions have a lot going for them right from the get go. We come from modest roots, and our life story is romantic and noble. We are honest, live to help others, and in our free time, can even be quite the trend setters. It doesn’t hurt that our mutual friends say great things about us either; a good wingman can make all the difference.

All joking aside, what this interaction does lack, is a heart pounding, sweat inducing, and adrenaline pumping moment; the type of moment that could add just enough excitement to leave them wanting more. Offer them a credit card (and if regulation allows, pre-approve them for one). This is especially true for Gen Y’ers who are eager to sink their young shiny teeth into this type of opportunity.

Why is this exciting? The feeling of acceptance in itself evokes a feeling of accomplishment or achievement, which is exciting, even if this acceptance wasn’t actively pursued.

Once that excitement is buzzing around the room, this new member, will in theory, misattribute this instance of excitement to this first encounter, rather than the excitement related to being offered a credit card. The member will leave floating on cloud nine, full of lust for their new Credit Union, eager to tell others about this new and exciting relationship.

I don’t mean to suggest we should use physiological principals to manipulate new and potential members, but I do mean to suggest, that if we can use this principle to create a stronger bond with our members while helping them simultaneously, why wouldn’t we?

Credit Union cards tend to be offered at a much lower interest rate than most of our competitors, and creating this spark now can create a bond, otherwise known as loyalty, which can be used to help members through various life stages later on. This member has now been shown the Credit Union trusts them, and they will continue to trust in the Credit Union.

Now that trust and loyalty have been created, realize this – two of the biggest factors in creating a healthy and nurturing relationship, have been accomplished here, simply by offering your new member a credit card. Simply put, you’ve created love, and isn’t that worth taking a little risk for?

Why Credit Unions Almost Lost Me: A Response to “Credit Unions are LOSING”

With the philosophical debate of fate or free will aside, sometimes, something that can be explained in no other way than fate, intervenes in your life at the most influential of times. (Specifically, about six months ago…)

As far as ruts go, I was in deep. I sat thinking that my short and seemingly nonproductive time spent behind a terminal as your friendly neighborhood teller was coming to a fast and abrupt end. Change seemed imminent and it was upon me. That was when I ran across an article called “Credit Unions are LOSING.” I HIGHLY suggest reading this piece; this article single-handedly saved my Credit Union career. I say this because sometimes, all it takes is knowing you are not alone in your struggle to inspire perseverance and determination to succeed.

To summarize, this amazing article addressed the elephant in the room, why young professionals are leaving the Credit Union industry. It speaks about how as an industry, we are losing a vast amount of incredibly talented and potentially detrimental players in the movement to community banks or even other industries in general. The author, Sean McDonald, shares insight he has received from former Credit Unioneers (as a disclaimer, I am hoping this well catch on as we are currently pioneering a progressive and ever-changing industry) who had crossed the line from C.U. to B.A.N.K.

I am writing now to share my point of view.

Credit Unions as a whole, sit on a foundation on philanthropy. They come from the most humble of beginnings, persevere through the most epic of struggles, and triumph with dignity over its naysayers. Most Credit Unions started in a basement or in a shack somewhere, built from nothing for the sole purpose of helping others. A charming and endearing love story, isn’t it?

As a member of Gen Y, I should want nothing more than to work within an industry with such a noble mission. Alas, I didn’t. I instead felt betrayed by an industry that promised its starry-eyed young professionals a chance at fulfillment and progression toward the great good. Here are my top four reasons as to why:

                1.There is an adversity to change and innovation. The majority of leaders in the industry today, remember a point in time where they fought. There was a daily battle to seemingly accomplish what we have today, and thus has emerged the mega Credit Unions. Simply put, if you had achieved what you had fought for, why would you fight to change it?

                2. Numbers have taken center stage. Though elaborate facades obviously have a higher overhead then a shack or basement, growth in numbers in terms of money have become of high importance than reaching economic goals within the community or other measures of success. Understandably, money is the lifeblood of the financial world, money is the inventory of the      Credit Union world, but unfortunately, it has also become out product. Credit Unions once sold the American dream, now they sell money.

                3. Practice makes perfect, but preaching takes less effort. As employees of a Credit Union, we hear about great mission statements and visions of a brighter future, however, we see a lot less     of that then we hear. I believe there is a longing among employees to feel empowered and see  this change. Though change may be seen in our numbers, we desperately want to see this change on a level that isn’t measurable in an excel spread sheet.

                4. Young professionals are feeling betrayed. As I stated above, I felt let down by my industry. As a generation, Gen Y was taught to do what they loved and to never settle for less. The Credit Union love story reeled us in, but hasn’t proved efficient in sustaining a healthy population of young professionals. We were lied to. Once dreams die, what is left in work but money, and let’s      be honest, there isn’t much of that going around either.

From the micro Credit Unions struggling to survive, to the evolved institution with a proud corporate heartbeat, change needs to be seen universally to overcome this almost insurmountable obstacle. Though we’ve reached a comfortable plateau in our story, the heroes will rise above, challenge our security blanket, and ask what’s next.

It’s important to remember that though we are successful today as we are, we’ve also been successful as an industry, and gotten where we are today by building upon change, innovation, and challenging the status quo. The past is insight into our future, and looking into the past might be just what we need.


Misunderstanding Gen Y

As a member of Gen Y, I’ve become very accustomed to being told what I want in a financial institution. Every expert out there seems to know what I want before I do. Thank goodness for that, because I know personally, without the elder generation telling me what I want, I don’t think I would ever really know.

On a serious note, I have a problem with a vast majority statistical data generated in regards to the subject of Gen Y. The problem with surveys, is that they ask the wrong types of questions. The data gathered by a lot of surveys are based on a split second decision based on imaginary circumstances of what ifs. At the time, a participant might think, “I would like “X” service,” but once the product or service is used regularly for 3-6 months, it may not fit their financial needs the way they fantasized it would.

We are asking the wrong questions. We are asking what Gen Y wants out of a financial, rather than asking what they want out of their Credit Union, an organization which they have become a member of. This is an important differentiation. What draws members into a Credit Union above and beyond products and rates, is their social awareness, vision, and concern for their members and the communities they serve.

Don’t get me wrong. I do believe Credit Unions need to stay relevant in regards to technology and services, but I believe there is another aspect to Gen Y that is being ignored and forgotten because of flawed survey results and preconceived notions Credit Union land, financial experts, and the rest of society, already have about this mystery generation.

In addition to that, I’ve also come to realization that everyone outside of Gen Y knows, and likes to announce, every fault that we seemingly all possess. To be blunt, I’ve learned that as a member of Gen Y, I am a lazy, self-centered, cry baby with a ridiculous sense of entitlement. Also, I want success and I want it NOW! Hard work is for the generations past and I expect my future to be handed to me on a silver platter with the perks and salary of a CEO.

Also as a member of Gen Y, I’ve come to have a fondness for satirical pieces of literature.

The one “stereotype” these experts don’t seem to hit on very often, is that despite the negative connotations associated with the phrase “Gen Y”, this up and coming group of young adults is very socially and environmentally conscious, and desire, for the most part, a sense of community and camaraderie.

This is something I NEVER see advertised. I see rates and products. Let’s be honest… in my early 20’s I am in no position to be rate shopping. Long story short, this is insignificant me and has very little influence on where I choose to do business. (Loyalty will always take precedence over rates in my mind.)

So what does this have to do with anything?

I was very recently reflected on why I have such a strong loyalty towards my current Credit Union. It wasn’t the rates. It wasn’t the free checking, I can get that at any Credit Union. It wasn’t their home banking or bill pay, though I must admit, they are pretty stellar. I could not pin point why XYZ Credit Union was able to keep me loyal when I had switch Credit Unions three times in the past two years. Then, all at once, it hit me.

I love what they represent. The other Credit Unions I had belonged to had a brand, but I didn’t see it, I didn’t hear about it, and honestly, I didn’t care about it because it didn’t pertain to me. (See there is that self-centered thing I was talking about earlier.) My current C.U.’s charter revolves around a local university. Said university has strong ties to the community, a very successful and well known sports program, and academic success to brag about. I care about this university. I care about their sports team. I care about their success.

My Credit Union is fortunate in the fact that this well-known university built a successful brand for them. Their members care about the university, it’s mascot, it’s sports team, it’s students, and in the long run, the Credit Union which is associated to it, whether this is a conscious decision or not.

So what is the point of all this? You love your Credit Union, big whoop.

If Credit Unions want to impress and entice this mystery generation to become members of their organization, become loyal, life time members, they need to make Gen Y care about them, what they represent, and why they are doing for their members and the communities they serve.

Gen Y wants to see results, not just hear about the good you want to do. We want to see result locally that affect us and our communities directly. We want to see that Credit Union difference that everyone is raving about. Not only that, but we want to be involved, because as I stated before, we’re self-centered and we like to brag. The up side to this, is that we will brag to all our friends who are feeling lost and unaccounted for in the confusing world of financial indifference they are drowning in, and follow our lead.

Bottom line, not many of us are going to care about XYZ Credit Union with the good rates. Our generation however, will hang out for an extra minute to hear all about what ABC Credit Union did for the communities we care about. That’s pretty cool.

Credit Unions need to start thinking of themselves and branding themselves as an indisputable and irreplaceable part of the community because of what they do, rather than a place to put money with fewer fees and better rates. We are socially aware and we want to do business somewhere that shares our views.

Obviously, as a peon, I’m no expert, but if I feel this way, chances are, a good amount of my peers do as well. So as experts sit back and judge Gen Y, label us by making general assumptions based on the decisions and actions of a few, and surveys taken by many with little experience to base their answers upon, we as a generation, will also be judging Credit Unions, and other businesses, in the same way. Advertise rates, and fall into the abyss, you will be just another financial institution. Stand out in the community, and you will stand out to us, an outlier, fighting against the stereotypes that so unfairly define Credit Unions and Gen Y alike, as we are so much more then what we are given credit for.

Can Credit Unions be the P.C. of the Financial Industry?

Today, all whilst basking in the sun of a near perfect spring day in Wisconsin, I stumbled across something which connected some very elusive dots in my head.

First, I would like to preface this post with stating that being a peon in such a vast industry, juggling regulation with missions and visions, I try to stay well versed in the happenings of Credit Union land. My inbox is flooded with daily links and articles and if I am not consumed with daily monotonous tasks, I am reading, soaking it all in. This is where these “dots” I was taking about, came from.

Article after article, interview after interview, I’m reading about issues, lack of innovation, the struggles of relevancy in terms of everything from target demographics to the latest mortgage regulations; let’s not get started on mortgage regulations… In terms of the next big idea, the solution, the one that will work, it is probably out there and I’ve probably read about it.

If all of these issues, and solutions to said issues, are floating around the interweb somewhere, why isn’t anyone doing anything about them? I’ve read theories on that too. One interesting theory poses the idea that our decision makers are just getting too old, stuck in their ways, and refuse to innovate and move forward. Maybe. Another good one portrays the Credit Union world in shambles, losing the people who really care about it and its vision, leaving nothing different then bank tellers and paper pushers working for a pay check and nothing more. Perhaps. I can’t vouch for the validity of either of these ideas, so I will let you draw your own conclusions.

There are more; dozens, maybe hundreds of ideas, waiting to be read by peons across the nation. This is where my lunch break became ever so enlightening.

I’ve just started reading a book by Malcolm Gladwell titled “Outliers.” To include a quick synopsis, it outlines that circumstances in which success in individuals is created. And here, I will shamelessly plug this book because I am really enjoying reading it thus far, and you might too – buy it here.

This particular passage of the book spoke to me, not only because I had a real life application for what Gladwell was saying, but also because it focuses around computers and technology, and short of being involved in the I.T. world, I enjoy my gadgets and all things techy.

Computers were once grand machines, taking up rooms, huge colossal beasts with a price tag to match. Access to them was sparse. There was no such thing as a personal computer, which was O.K. because back in the 60’s and early 70’s, no one knew the computer for anything but the elusive and mysterious creature it was to most. Gladwell explains that during the introduction of the personal computer in the mid 1970’s, there was an age ideal for taking the industry by storm and creating progress within it.

Gladwell goes on to say that if you were too young, you would miss the window as you were in high school and had no means to actively pursue this path. If you were older, you most likely were already employed by IBM and had a pretty good handle on what was going on in the world of computers.

Now we are getting somewhere.

Those smart and stubborn employees, who were just a little too old, a little too seasoned, at IBM thought they had it all figured out. They knew computers, and they were the future. Personal computers were tiny, inadequate machines made for hobbyists, and weren’t worth a second look. Why mess around with this tiny innovation while you were creating comprehensive, gigantic mainframes in a billion dollar industry?

Well we all know why now, don’t we? Personal computers, smart phones, most of us can’t even remember what it was like to live without them, let alone imagine a day where they cease to exist. Oh the agony!
So how could IBM miss this and not jump on the band wagon? How did the leading manufacture of mainframes at the time not recognize this fantastic advancement as one of the most profound technological stepping stones as the proverbial needle in the haystack?

Because IBM was the computer industry. They were just a little too old, a little too seasoned to see past what they already knew and embrace the change that was happening within their cherished industry. They were so blinded by their idea of what computers were and where they thought were going, that they failed to see the brilliance and significance of what then seemed like a drop in the bucket.

Now you see where I’m going with this, don’t you?

Credit Unions as an industry, well, were really pretty young, just as IBM was a fairly young company when the rise of the personal computer took the world by storm. But have we aged too much? Have we become too old, too seasoned, to take advantage of what is before us because we know what is best, and we see the future of the industry? We’ve been doing it for years and have been very successful at it! So what happens when things change? Needs change, technology changes, everything and everyone around us will change. Will we?

Will Google wallet or PayPal “out-bank” us? Will they be the young, innovative genius behind the personal computer of the Credit Union’s IBM phase?

Is the next great leader out there, but we are ignoring them because we know what is best and they are too young or too ignorant to truly understand the real trials and tribulations of the industry?

I am in no means saying that Credit Unions are destined to fail. I simply mean to question whether or not we would know what the next move was if it was staring us in the face. Or maybe, we would simply swat it away, like a bug buzzing around our head. We may be too seasoned to hear this bug for the butterfly it truly is.

I don’t have the answers to these questions, but I find it very interesting how much these two stories, from very different industries, seem to connect to one another. Maybe the answer to our problems is found outside of the industry, or maybe not. Maybe it already exists and we’ve yet to capitalize on the idea. There are a lot of what if’s and not very many definite answers, but one thing I am very sure of, is that we are upon the dawn of our own “personal computer” era.

My hope for Credit Unions is that they thrive. I hope there is an answer to all its ailments and this unrest in merely a blip in our long, and successful journey. I also hope Credit Unions can be as forward thinking in the future as they were in the past. We’ve come so far on innovation; we’ve helped so many by being innovative, why stop when we think we’ve found somewhere comfortable to rest.

Most importantly, I hope to help make sure we ARE the future of the financial industry, rather than just a stepping stone to greater one; the personal computer of the financial industry.