SAN FRANCISCO (7/3/14)--There's a "seismic shift" that nontraditional providers are causing in the financial services industry, James R. Lay told America's Credit Union Conference attendees Wednesday.
"It's time to admit the traditional banking model is broken and flawed," Lay said. "The banking industry is at high risk of disruption."
Add to that the fact that young adults aren't showing traditional financial institutions much love. Lay cited a recent survey that revealed 71% of Generation Y respondents would rather go to the dentist than to a bank--and that 33% believe they don't need a bank at all.
The remedy? Digital "storyselling," he told the Credit Union National Association conference attendees, where credit unions use member stories to position and sell their products. "People trust people--and they buy stories, not features. The key to success is humanized content and distribution channels."
He advised taking a seven-step interconnected digital strategy that asks:
"The time to act is now," Lay said. "We've seen the casualties: Borders, Blockbuster, Tower Records. They built businesses models based on the branch model.
"We have to change how we operate and generate leads," he continued. "That's through storytelling. It's the real moment that sells online. Those stories start with people--and that's the credit union model."