By Frank J. Diekmann
Looking to burn some calories ahead of the upcoming holiday season, here’s a quick run through a buffet of bite-size nuggets and other items from the reporter’s notebook:
Reexamine the Data
One credit union exec recently shared with me an example of how a topline piece of data on member profitability may not show what you think it shows. In this case, the member had approximately $100,000 on deposit. But looking a bit deeper the credit union discovered the same member had the $100,000 spread over 22 different certificates with relatively small balances, meaning the servicing costs were eating the small margin being earned on the deposit.
Either a Noticeable Good Deed, or An Office Potluck Gone Very, Very Bad
First New York Credit Union in Albany has for several years staged a community initiative in which it collects personal hygiene products, such as rolls of toilet paper, to give to those who receive food stamps, which cannot be used on such products. It then shares its collection with Catholic Charities Tri-County Services, an agency made up of programs that assist the needy with the basic necessities of life.
As you can see at right, it’s not easy for branch visitors to miss the promotion.
How to Compete
Sam Kilmer of Cornerstone Advisors recently shared this observation heard during the recent Finovate meeting from Rilla Delorier of Umpqua Bank, who said, “Enough of the scare talk. Good news, banks: We have customers. At Umpqua Bank, we sold Pivotus to Kony to focus on our people. We know we can compete and win with customers on HOW we use tech with our people.”
Consumers Have Financial Goals; Unfortunately…
A recent survey from LendEDU www.lendedu.com offered some insights into consumers’ financial goals, but it came with a pretty big dose of reality and even some defeatism, sad to say.
First, consumer were asked, out of the following options, what financial goal is the most important for you to achieve or is your number one priority?
- 20% of respondents answered “Buying my own house or apartment”
- 19% of respondents answered “Having enough saved so I can finally retire”
- 14% of respondents answered “Paying off credit card debt”
- 10% of respondents answered “Building an emergency fund”
- 7% of respondents answered “Paying off my student loan debt”
LendEDU found 7% of respondents answered, “Realistically, I don’t think I will ever be able to attain the goal I answered question 1 with” Of those who said they ‘realistically” see no way to ever reach their goal, they were asked, why?
Their responses:
- 20% of respondents answered “My expenses are simply too high and I have no discretionary income to use on other things”
- 14% of respondents answered “I have too much debt to payoff”
- 7% of respondents answered “I am stuck in a low-paying job/industry”
- 6% of respondents answered “In general, my consumer confidence is simply too low”
- 1% of respondents answered “I do not have enough/good enough credit”
- 52% of respondents answered “Another reason not listed”
That close to one-in10 members feel so skeptical about their own financial futures is a reality every CU should keep in mind when making resolutions for next year. And let’s face it, that 7% is just those who were honest enough about what they see as their prospects.
Keep Your Craft Beer
You have no doubt read, and CUToday.info has reported multiple times, that Millennials prize various non-financial factors as most valuable to them in a career, such as doing good work for a good cause or having a craft beer tap at the office. Gan Z’ers? Not so much.
In a survey of 1,000 college undergrads by Clever Real Estate, members of Generation Z are back to saying, “show me the money,” with respondents making clear tangible, money-based incentives – such as competitive salaries and excellent insurance plans – are more important to them than above a fun work environment, flex time, and unlimited PTO.
In fact, the survey found going to college to earn more money throughout their career is the number one reason Gen Zers are getting degrees.
Frank J. Diekmann is Cooperator in Chief at CUToday.info and can be reached at Frank@CUToday.info or @FrankCUToday.