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2005: Scenarios for Credit Unions (1999)
What sets credit unions apart from other financial service providers is their distinct philosophy: member-owned, not-for-profit cooperatives, serving the needs of particular groups of people. Interestingly, while the public shows greater trust in credit unions than in banks, and praise credit unions for the respect with which they treat their members, consumers generally are not aware of credit unions' distinct features. Because of this, as well as other forces, today's credit unions enter a new and challenging era where they will have to rethink their past mission and redefine their vision for the future.
To this date, the credit union movement's mission remains largely intact. Despite the changing environment around them, most credit unions have continued to operate in much the same way as envisioned at the turn of the 19th century. This resilience amid change is a testament to the strength of the vision, the robustness of the institutional model of credit unions, and perhaps to the continuing needs of the under-served in the community and marketplace. But will this last?
Despite the credit union movement's stable history, business history teaches us that past success is no guarantee of future survival. No industry can rest on its laurels, especially when the world around it is changing. Credit unions should continually scan the external environment to understand how the dynamics are shifting - and what the implications may be for their particular institution.
The history of business suggests that winners can quickly become losers. The reasons appear numerous: overconfidence in the current business model, filtering and rationalization of signals that do not fit, lack of vision and leadership, listening to the wrong customers, incentives to maintain the status quo, and the collective reinforcement of like-minded souls populating the same industry.
This report is intended to facilitate development of industry scenarios by providing you with a detailed projection of four different futures the credit union industry may experience by the year 2005. We hope that credit union leaders will come to terms with the fundamental strategic issues facing them, rather than focusing only on tactical or operational issues. Our aim is to stimulate strategic dialog within your organization about your own future.
Click here for PDF file of this report
If you interested in getting additional information or would like to order copies of this report, please contact:
Credit Union Executives Society
5510 Research Park Drive
P.O. Box 14167
Madison, WI 53711
800-252-2664
www.cues.org
What sets credit unions apart from other financial service providers is their distinct philosophy: member-owned, not-for-profit cooperatives, serving the needs of particular groups of people. Interestingly, while the public shows greater trust in credit unions than in banks, and praise credit unions for the respect with which they treat their members, consumers generally are not aware of credit unions' distinct features. Because of this, as well as other forces, today's credit unions enter a new and challenging era where they will have to rethink their past mission and redefine their vision for the future.To this date, the credit union movement's mission remains largely intact. Despite the changing environment around them, most credit unions have continued to operate in much the same way as envisioned at the turn of the 19th century. This resilience amid change is a testament to the strength of the vision, the robustness of the institutional model of credit unions, and perhaps to the continuing needs of the under-served in the community and marketplace. But will this last?
Despite the credit union movement's stable history, business history teaches us that past success is no guarantee of future survival. No industry can rest on its laurels, especially when the world around it is changing. Credit unions should continually scan the external environment to understand how the dynamics are shifting - and what the implications may be for their particular institution.
The history of business suggests that winners can quickly become losers. The reasons appear numerous: overconfidence in the current business model, filtering and rationalization of signals that do not fit, lack of vision and leadership, listening to the wrong customers, incentives to maintain the status quo, and the collective reinforcement of like-minded souls populating the same industry.
This report is intended to facilitate development of industry scenarios by providing you with a detailed projection of four different futures the credit union industry may experience by the year 2005. We hope that credit union leaders will come to terms with the fundamental strategic issues facing them, rather than focusing only on tactical or operational issues. Our aim is to stimulate strategic dialog within your organization about your own future.
Click here for PDF file of this report
If you interested in getting additional information or would like to order copies of this report, please contact:
Credit Union Executives Society
5510 Research Park Drive
P.O. Box 14167
Madison, WI 53711
800-252-2664
www.cues.org