If you haven't been disrupted by the events that have shaped 2020, please raise your hand and introduce yourself.
At this point in the year, it feels like disruption might be THE word of this year. In terms of the member experience, industry disruption occurs when a new market entrant solves an existing problem in a new way.
A recent example is the ride-sharing companies' impact on the taxis industry. In the credit union industry, THRIVE's research has found that PayPal is a significant disruptor. Most credit unions offer a similar payment service like PayPal but have found that it was not utilized in the same capacity.
Payments systems are not a direct competitor; it is the other offerings that a payment system may make that are. For example, PayPal offers loans and credit cards, which they market to users directly in its transaction stream. The ease in applying and quick access to the loan or credit card inside the PayPal app is downright seductive. While product run-off may be slow, it can quickly increase to the point where credit union products are no longer being used. When a member ceases activity on a credit union credit card, it is honestly too late to attempt to save the relationship.
Here are three steps a credit union can take to leverage its data to stop this flight.
Review transaction data and look for trends about competition/friction/flight.
Create offers relevant to a member.
Remove as many obstacles for an effortless engagement as possible.
If you need any help doing this, please reach out, that is what we do. Most importantly is to perform a data assessment, so credit unions do not find themselves feeling like taxi drivers to ride-sharing services; the taxi industry didn't see the flight trickle away until it was a deluge.
Is there a book out there that
can help me learn more
about industry disruptors?
Written for credit unions by a credit union expert, Big Data/Big Climb: A credit Union playbook for leveraging data and talent to achieve revolutionary member relationship has been hailed as a "must-have". The book cuts through techno-jargon and translates data transformation concepts into a playbook filled with real-world examples, assessment guides, and other tools needed to reduce member friction, analyze actual competition, and identify disruption to improve the lives of its members and gain competitive advantage.
What if I want something more interactive than the book?
For the same time that it takes to enjoy your lunch, you could be learning about the elements of a disruption analysis. Click here to learn how to access the recorded session on this topic.
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