By Donya Parrish, MCU VP – Risk Management
It has been an interesting week, to say the least. The news of the failure of Silicon Valley Bank, and later Signature Bank, has exposed some public misperceptions and disagreements on the role of deposit insurance, regulations, and risk. But it also opened the door to what I believe is an incredible opportunity for credit unions.
Now more than ever, you have a chance to highlight your difference as member-owned financial cooperatives run by volunteer boards of directors and focused on serving the communities you live in and the residents and small businesses you see and interact with daily. That is a huge differentiator in the decisions you make and the level of risk your credit union takes.
Here are a few thoughts on how your credit union can take advantage of the Silicon Valley news:
Talk to Your Team — Make sure your staff, especially those in the call center and on the frontline, can answer member’s basic questions about topics such as share insurance and what a credit union is (and how it differs from the banks consumers may be reading about). They might also have their own questions about the credit union’s capital level, risk tolerance, or regulatory oversight.
Educate Your Members — Take the opportunity to push information to your social media, websites, and other platforms to remind your membership what it means to be a credit union. Be proud that you put people before profits! Introduce them to your volunteer board of directors, provide them basics on share insurance, or ease their concerns about the safety of their funds and future.
Look Internally — What is your credit union’s differentiator to members? If you are struggling with articulating it right now, it might be time to step back and have a conversation with your board and management team about your strategic goals and how to reach them.
If you need any assistance with the above, keep your MCU team in mind. We are here to help you succeed and more than happy to promote the credit union advantage to anyone willing to listen!