2 minutes
From the editor
With more than three months to go, the inaugural class of CUES’ Strategic Innovation Institute at MIT is nearly full, underscoring credit unions’ growing urgency to become more innovative.
Generating novel ideas that meet member needs, polishing project management skills, and fostering a culture of adaptive, collaborative employees are all keys to advancing innovation at your credit union—and are all part of the institute’s curriculum.
Another vital piece is supporting new initiatives with appropriate funding. With interest rate spreads honed to the bone, where can credit unions find the money to invest in innovative offerings?
Keep an even tighter watch on technology vendor contracts, especially ones covering “mainstream” solutions, suggests Cornerstone Advisors Inc., a CUES Supplier member and strategic partner based in Scottsdale, Ariz. Then funnel the savings toward innovation.
When a technology matures—think core systems and item processing—commodity pricing results. Additionally, the time span from “innovative” (read: highest priced) technology to mainstream has decreased, meaning commodity pricing for mobile will come much sooner than the 20 years it took for ATMs, explain Cornerstone’s Terence Roche and Bob Roth in “Juggling Priorities.”
Negotiating lower pricing where possible for existing services can open up funding for new offerings, they write. But it takes an organized approach. “Contracts cannot be managed and negotiated one by one by individual business groups. They must be managed at the C level and in tandem. Think about how the credit union approaches its asset/liability and loan committees. They are both good models for the IT committee.”
Looking for innovative, tech-based offerings? Check out “Tapping Technology,” about apps and tools that can help credit unions get more involved in their members’ financial lives.
Mary Auestad Arnold
Editor and Publisher
P.S.
Nominations for CUES Next Top Credit Union Exec close June 6. The challenge is open to emerging non-CEO leaders, age 35 and under, who want to take their ideas and games to the next level. $50,000 in educational prizes are at stake so nominate a rising star today! It only takes a moment at www.ntcue.com.
