May 17, 2016
CU Strategy @ Light Speed
Surviving
in the
Dynamic Financial Industry
Adam Cohen
President/CEO
Shift Happens…
Financial industry trends frame this presentation…
but there are two fundamental issues
strategic thinkers must address for
future marketplace success
Only 28%
OF CONSUMERS ARE LOYAL TO THEIR PRODUCTS AND BRANDS.1
More than 75%
OF THE WORLD’S POPULATION WILL
OWN A MOBILE PHONE IN 2030.2
SO WHAT?
Consumers are SWITCHERS
Non-traditional options will be DISRUPTERS
Successful CUs must be DIFFERENTIATORS
Emerging (?!) Trends3
• Average individual spends 94 min/day using
apps, checking email, and texting up to 100
times per day
• Average individual logs onto mobile banking
up to 30 times per month and internet
banking 7-10 times per month (33% monitor
accounts daily)
• More people access the internet via mobile
device than a PC and, in 2016, more than half
the planet will own a smartphone with
internet access
Emerging (?!) Trends3
• Close to 50% of U.S. lenders take onequarter or more of their mortgage
applications online; 61% of loans through
3rd-party underwriting engines were
approved online
• In 2000, 59.5% of U.S. retail payments
were made by check; in 2010, only 4.3%
[some experts suggest 2021 as a possible ‘zero-check’
horizon]
What if (and when)…
• Digital person-to-person payment and money
transfer replaced traditional banking
transactions?
• Cash transactions shifted to electronic value
cards, debit cards, ACH transfer, and mobile
wallets?
What if (and when)…
• Branches ceased to exist …. or were
consolidated service centers without brand
affiliation (“shared banking” on steroids)?
• Financial institutions became primarily
technology providers with banking simply
being the utility provided through the
technology?
Today’s financial services models,
products, and consumer services
won’t get it done tomorrow.
GREAT.
How do we decide
what to do about it?
@Light-Speed StrategyTM is a
dynamic process about choices to
create sustained success and
exceptional value for consumers
today and in the future.
MEMBERS
PRODUCTS
@Light-Speed
StrategyTM
WORKFORCE
OPERATIONS
• Evolve from consumer rate-driven to
to consumer value-optimization
• Personalize member experience and enable
member immersion
• Connect to emotional levers like legacy, hopes,
and dreams
• Shift from transactions emphasis to
relationships model
• “Switch-proof” by delivering products
for members’ lives, not just finances
• Partner with complementary providers as a
value-multiplier
• Evolve from employer-employee
to partner-contributor philosophy
• Enable intellectual and emotional contribution
• Invest in future-focused workforce
competencies
• Reimagine the branch model
• Adopt consumer-adaptive and -inclusive
technologies
• Enter the “shared economy” via smart
collaboration
change
run
Visionary, distinctive actions
required to transform
performance to create
sustainable success
and value
Essential, consistent actions
required to manage and to
improve service delivery
to generate desired
results
What is our purpose?
change
Where are we going?
How will we get there?
run
Run
What actions will we take?
How will we measure success?
…we’ve made a commitment to move away from a productcentered business model and focus instead on creating
consumer solutions…solutions for a better life.
It’s about celebrating the interaction, not the transaction…
Empowering our members by offering competitive products
and the resources they need to live life to the fullest.
…dedicated to the personal financial success and aspirations
of every member. Making dreams come true.
Deliver ever-improving value to our membership
through a systematic framework of
organizational alignment and process improvement.
Be a one-stop financial institution of choice by
redefining services, products, and channels.
Cultivate a strategic culture so team members
can facilitate our members’ dreams.
Leverage technology that builds community and
communicates in a personalized way to our members.
Action plan
5- to 10-year Objectives
1- to 3-year Actions
5- to 10-year Projections
1- to 3-year Targets
Scorecard
Don’t just survive, thrive
• Reach beyond member satisfaction to create
consumer relationship value
• Escape the boundaries of traditional financial
services models
• Deliver on a strategy to change the business
and run the business
The essence of strategy is
choosing what not to do.
Michael Porter
Strategy is a set of
choices about winning.
Roger Martin
Strategy isn’t what you
do when the future is uncertain,
it’s what you do to
make it certain.
Adam Cohen
[email protected]
303.888.2429
References & Readings
References
1Accenture.
The $6 Trillion Opportunity: How Digital Improves Customer Experience. 2015.
& Co. The Consumer Sector in 2030: Trends and Questions to Consider. December 2015.
3King, Brett. Bank 3.0: Why Banking Is No Longer Somewhere You Go But Something You Do. Wiley. 2012.
2McKinsey
Readings
Martin, Roger L. and A.G. Lafley,. Playing to Win: How Strategy Really Works. HBR Press. 2013.
McKeown, Max. The Strategy Book. Pearson Education Limited. 2012.
Porter, Michael E. Competitive Advantage: Creating and Sustaining Superior Performance. Simon and Schuster. 2008.
Yoffe, David B. and Michael A. Cusumano. Strategy Rules: Five Timeless Lessons from Bill Gates, Andy Grove, and Steve Jobs.
HarperBusiness, 2015.