YP Think Tanks

In today's rapidly evolving financial services landscape, credit unions are encountering the challenge of attracting and engaging younger generations, specifically millennials and Gen Z. These demographics have distinct expectations and preferences concerning financial services.

Your assignment is to propose a solution that enables credit unions to effectively reach and connect with younger members and prospective members, thereby enhancing their financial well-being and fostering long-term relationships – making your credit union their primary financial institution.

SOLUTIONS

Solution 1:

• Tiered incentive program based on financial literacy (specifically ages 12-47ish)
  • Middle School – report card incentive – if you’re on high honors - $25 in the account, honor roll- $20
  • High School– In addition to offering scholarships, child is rewarded (with deposits into their account) for going to a higher education or trade school, attend a class held by the CU where they create a budget, open a checking and get direct deposit if they have a job
  • College -age – Attend a career fair and financial ed classes in exchange for loan rate discount on their first loan with the CU and must attend credit counseling OR deposit to their account OR first payment made by CU
• Go into school districts and advocate for the programs, and use brand ambassadors from the CU – Cons are budgeting restrictions but long term pros are sticky members and long term relationships

Solution 2:

• Implementing strong social media accounts, education and “flashy tech”.
• Features and services that are easy and fast
• Gamification of digital offerings and offering the ability to connect with other users

VIDEOS

In today's fiercely competitive financial services industry, credit unions must attract tech-savvy talent and foster an environment where employees feel valued and can advance. According to the 2023 “Crowe Bank Compensation and Benefits Survey,” nearly 65% of respondents noted it has been somewhat or very challenging to remain competitive among the younger workforce population. It's clear that higher pay alone isn’t enough to retain talent.

Your assignment is to brainstorm innovative strategies and actionable recommendations to empower credit unions in effectively engaging and fostering connections with their workforce, aiding in career development and employee retention.

SOLUTIONS

Solution 1:

• Offer award culture that is employee empowerment focused
• Open to feedback and encouraged by change. Possible ways to accomplish this are:
  • Offering flexible working hours
  • Cultivate and organize different committees to meet the needs of employees’ interests and hear the voice of the employee
  • Unlimited PTO
  • Regular meetings and face time with executive level leadership
  • Awards for employment anniversaries with rewards like PTO on birthday, monetary gifts, etc.
  • Recognizing the impact of employees’ accomplishments
  • Career pathing employees who express interest in this route

Solution 2:

• New wellness benefit “packages” to include 1 hour of PTO per week to engage in their selection:
  • Health Package: Discount on gym membership
  • Education Package: Discount for books/education needs
  • Household Package: Grocery store discount

VIDEOS

Credit unions face the challenge of maintaining non-interest income amidst increasing regulatory pressures and shifting member expectations. Traditional sources such as NSF/overdraft fees, interchange fees, and credit card late fees are under scrutiny. To sustain profitability while fostering trust and member satisfaction, credit unions must explore alternative, member-friendly sources of non-interest income.

Your assignment is to propose innovative solutions that allow credit unions to generate non-interest income without compromising member trust and satisfaction. Aim to identify strategies that align with the values of credit union members and support their financial well-being.

SOLUTIONS

Solution 1:

• Increase NII by utilizing current CU spaces for additional purposes such as offering employee childcare facility or doggy daycare to small businesses.
  • Small Businesses will be “spotlighted” in these spaces and will pay a small fee to the CU to use the spaces.
  • These services will able to offered to credit union employees and members (for cost)
    • Benefits:
      • Increased employee satisfaction and productivity
      • Visibility to the membership and public
      • Possible use of grant funding for these
    • Challenges:
      • Licensing, necessary insurance coverage and being approved for grant funds could pose challenges
      • Implementation strategy may be difficult to develop
• Offer Flex spaces to the community to use
• Offer IT services and lessons to the community on PC/Computer topics

Solution 2:

• Revamping checking products to incentivize debit card transactions, in turn creating more passive income from MasterCard/Visa partner

VIDEOS

Recognizing the ongoing DEI (Diversity, Equity, and Inclusion) challenges within credit unions, the challenge at hand is to brainstorm inventive strategies and actionable recommendations to ensure equitable access to financial services and opportunities for underserved or marginalized communities.

Your assignment is to propose a solution that effectively addresses DEI within the credit union, fostering a more inclusive financial environment that engages underserved or marginalized communities.

SOLUTIONS

Solution 1:

• With the understanding that we cannot focus on everyone, we decided to focus on those with disabilities, language barriers, low income/unhoused – because it’s the broadest impact. Below are some ideas:
  • Staff member service center to be open 24 hours a day with will help provide the same service to those who work outside normal 9a-5p hours
  • Research and select a reputable translation company across all channels
  • Implement IBK/ITMs and place them in libraries, shopping and community centers that are voice and touch activated to allow anyone to use these - this could expand membership base
  • Engage the communities by participating in 5ks, and different walks to raise money, and also engage in literacy programs and work with soup kitchens and local food banks to interact with these potential members - this would grow trust and visibility in the community

Solution 2:

• New credit card or debt consolidation program that includes lower interest rates with financial literacy
• Helps CUs to build relationships and guide people to get on the right foot, repair or build credit and set them up for future financial success
• Hire more multi-lingual employees to meet people where they are at

VIDEOS

Credit unions today face a dual challenge: evolving to compete with large financial institutions while addressing the outdated perspectives of an aging board of directors. To drive growth and innovation, credit unions must find ways to modernize their leadership approach and align board vision with contemporary market demands.

Your assignment is to propose strategies for effectively managing an aging board of directors, ensuring their experience is leveraged while integrating fresh perspectives to foster growth and innovation in the credit union. Focus on creating a harmonious balance that supports competitive positioning and member-centric evolution.

SOLUTIONS

• Change up the structure of the board by adding non-voting associate positions to the board:
  • One position must be dedicated to a younger group
  • One position would be someone whose term expired but they remain on to coach and teach new board members
• Term Limits
  • Staggered 5 year terms: A way to keep the board fresh and new, doesn’t get everyone out at once but allows for new people to come on
• Recruitment
  • Goal is to mirror the board to the member demographic
  • Each year analyze the member demo based on age, race, gender, etc. and do targeted outreach to these groups to entice and get them to be on the board
  • Get more tech savvy, forward thinking board members
  • Use social media to “advertise” open board positions and attract innovative and fresh perspectives
• Ongoing Education:
  • Have department leaders come to the board and present, goals, initiatives, member feedback etc. and allow them to see what is going on in the CU to better leverage their experiences
  • Build an Advisory Committee of Employee throughout the organization that can relay happenings back to the board and vice versa where the board can share their knowledge with the org
• Involve the board in cultural initiatives like DEI, process improvement, team building, etc.
• Create a Junior Board that is half the size of the current board who will be the future board

VIDEOS