NEW YORK (7/3/13)--While the competition for consumers' wallets is more intense than ever, credit unions can leverage their knowledge of members to outflank their bigger rivals, a CUNA Mutual Group executive told attendees during an America's Credit Union Conference session Tuesday.
|Credit unions can use readily available member data to gain an edge on their competitors, John Lass, CUNA Mutual Group senior vice president of strategy and business development, said during the America's Credit Union Conference Tuesday. (Photo provided by CUNA Mutual Group)|
The conference, presented by the Credit Union National Association, ends today.
"The battle for the American consumer is crowded with competitors--card companies, telecoms, retailers, financial institutions and platform players, to name a few," said John Lass, CUNA Mutual Group senior vice president of strategy and business development. "Technology and the ease with which new players enter the game of winning consumers' business will require credit unions to respond, or be left in the wake," Lass told attendees Tuesday.
Financial institutions and retailers have their cross-hairs on members' savings, lending, investments and insurance business because new technology has changed the delivery of financial services to consumers, Lass said.
The common battle cry in the quest for those businesses--and payment systems--is customer centricity, and key to that is what's referred to as "big data," he said. Financial institutions and retailers, including credit unions, all have knowledge about their consumers, be it attitudes and behaviors, to determine where they shop, call or search.
"Data have become a real asset," Lass said. "Leveraging data is the key to knowing your members' needs and having the ability to deliver the right products and services to the right person at the right time." Data come in many varieties: Account balances, browsing data, social media, email and transactions, to name a few. "Harnessing that data is a key to customer centricity," Lass added.
Lass cited actions credit unions can take to win the battle for their members' wallets:
Convergence around savings, lending, investments and insurance has intensified as new technology has changed the delivery of financial services to the consumer. The battle is most intense in the area of payment systems. Lass identified key competitors and their new marketing strategies. The cooperative member centricity value proposition will be vital to survive and thrive in the midst of this dynamic competition, he added.
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