By Frank J. Diekmann
Just what does it take to be considered one of the “best” credit unions in the country? The usual things, of course, plus one more critical element that is often not given much attention: a sufficient number of members to answer a survey.
And if you’re a smaller credit union, the result is these kinds of rankings are anything but the “best” way to determine which CUs in the country are really doing the best job.
As CUToday.info recently reported, to gauge which CUs/banks have the most satisfied members/customers, Forbes said it partnered with market research firm Statista to survey nearly 25,000 people in the U.S. about their banking relationships. The result is Forbes’ fourth annual ranking of what the company calls the Best-In-State Banks and Credit Unions.
But are they the “best?” Twenty-five thousand is a darn good sample size if you’re asking about a political race or for favorite flavors of ice cream, but it’s not such a big number when you consider there are more than 10,000 banks and CUs combined in the country. So, Forbes either found 2.5 people per individual institution (which is not a valid sample size, as any self-respecting statistician will tell you), or it just ranked those financials for which it captured a meaningful enough number of customers/members.
I’m going to edge my way out to the very end of the limb here and suggest it’s the latter, and it’s also where we find a bias. The more members you have, the more likely it is your CU will at least be measured. The fewer members, of course, and, well, you know. You’re statistically “invalid.” And that’s too bad, because it doesn’t mean you aren’t among the very “best” at serving your members. Indeed, you may be more “valid” than most other providers given your relationships with your members.
In all, Forbes said some 190 CUs qualified to be rated.
Surveys like these create something of a self-perpetuating cycle of boom (for some) and gloom (for many others). Those ranked as “best” get better word of mouth, marketing promotion and social media exposure. Those unranked get slower growth and no national publicity, which leads to fewer members to answer a survey, which results in…
All That Matters
If you’re growing membership and accounts-per-household, then you don’t need a brand-name publication to tell you how your brand is faring. But if you’re not, you “best” start thinking about how to turn those kinds of red numbers green. Otherwise, the only “best” you’re going to hear are the best wishes on the merger.
For the record, in the Forbes’ ranking, which do not include Navy FCU because it is considered a national institution, some of the best-performing credit unions included Tennessee Valley FCU in Chattanooga (which was ranked highest), along with Mountain America CU, America First CU (in two states), CommunityAmerica CU, DCU, Visions FCU, Security Service FCU, Otero FCU, ELGA Credit Union, CSE Federal Credit Union, and Sikorsky Financial Credit Union.
It’s All Greek to This Heel
I recently received a press release from a credit union organization that announced, “Bankers have found an Achilles.” That’s it. No “heel.” No “tendon.” No “ancient statue.” I suppose the son of the Greek king Peleus and the sea nymph Thetis is happy to have some unencumbered fame for once.
An Early Candidate for Overhyped $3 Buzz-Phrase of the Year
We’re only halfway through 2021, but already I have a couple of candidates for the over-hyped buzzword of the year, courtesy of the overzealous and paid-by-the-word media relations folks in the country. But one buzz-phrase is currently on top in my rankings, and that is “strategic merger.”
Every press release issued by a credit union about any merger always emphasizes that it is more than just some everyday combination. It is, in fact, a “strategic merger.” Well, I would hope so.
Just once I’d like to receive a press release announcing plans for a “disastrous” merger, one devoid of any strategy whatsoever, involving clashing boards, no clear-cut objectives and conflicting cultures.
What the CU PR folks who spin these messages seldom go on to define is what exactly is the “strategy” behind the “strategic merger.” For the acquired credit union, it’s often “the board and outgoing manager practiced little foresight, i.e., a succession plan, so the strategy here is pretty clear in that we have no other choice.” For the acquiring CU the strategy is “we found a quick way to pick up some assets and new members.”
For some reason, those quotes never seem to make the press releases. I suppose that must be “strategic messaging.”
Frank J. Diekmann is Cooperator in Chief of CUToday.info and can be reached at Frank@CUToday.info. Mr. Diekmann is also author of a brand new book, “The Last Lyric,” a humorous satire about a murder investigation at the Rock & Roll Hall of Fame in which every line of dialogue is either a classic pop/rock song title or lyric. Available on Amazon, Apple iBook, Barnes & Noble and Smashwords.