The competitive nature between credit unions and banks has existed for a long time, though certain websites and events have been trying to bridge the divide. Still, parties on both sides see citing the opposition’s perceived pitfalls and weaknesses as great selling points to further their own cause.
Just because I am writing this post doesn’t excuse me from guilt or blame. I’ve openly supported videos like Larissa Walkiw’s The Difference Between Banks and Credit Unions, which openly points the finger at banks and explains why credit unions (in Canada) are better than banks. However, the more I have become involved in this industry and especially as a result of the Partnership Symposium earlier this year, I think that a lot of this feuding is misguided and misplaced. I feel that the energy could be used in much more effective ways, like improving the actual products and services we are marketing to our members and customers.
An Unending Battle, Fueled Further by Recent Events
The latest wave (brought to my attention) in the seemingly unending battle between banks and credit unions is a website titled Credit Union Ruse, originally launched in October 2006, that outlines one party’s perspectives on why credit unions should not be tax-exempt entities. I’d seen the site sometime last year, but it was brought back into my line-of-sight by Jeffry Pilcher, publisher of The Financial Brand.
It seems that with banks failing left and right and now finally getting their bailout plan, some individuals may not be too excited to hear about “mostly healthy credit unions [getting a] capital boost” of their own.
Let’s Kiss, Make Up and Focus on Building Better Financial Services
Though credit unions have not been effected as deeply as banks by recent situations in the economy, we still have a collective group of citizens and individuals who are in dire need of financial services and better ways to manage their money. It seems it might be worthwhile to put down the boxing gloves and instead focus more on our members and customers instead.
What do you think? Is all of this back and forth really worth it? Is it helping us serve our members better?
5 comments so far
1 Jeffry Pilcher // Dec 9, 2008 at 2:37 pm
I don’t think credit unions have as big a problem with banks as it is the other way around. Banks fight the taxation issue bitterly.
2 Mike Templeton // Dec 9, 2008 at 2:46 pm
@Jeffry I think you’re right. Most of the CU-related stuff I’ve seen has been fairly light-hearted or “little guy versus the big guy”, but I just get tired of some of this bickering.
Also, my other point behind this post digs into the credit union stigma that I think Mark McSpadden did a good job poking at, based on the “don’t call us a bank” or “don’t call it online banking, try online CUing instead” mentality.
Time and time again, we’ve seen many examples of the average individual not knowing (or possibly even caring) about the difference, so why must credit unions focus so much on that “difference” portion? Can’t they just build good products and let that shine through as a difference?
3 Morriss Partee // Dec 12, 2008 at 12:07 pm
@Mike - great blog post; I completely agree. Attacking the other side does nothing except to turn people off to the person making the accusations. So let the banks continue to waste their breath and make themselves look bad to the average consumer.
This link was brought to my attention by a CU marketer here in Massachusetts- the link is on the home page of a bank just up the street from him. But it’s a small ugly graphic. I absolutely guarantee that fewer than 10 customers of the bank ever clicks that link, and even if they do, they won’t begin to understand that page. It’s an absolute waste of time and resources for that bank, and does nothing except to clutter their page and diminish their own brand.
http://www.southbridgesavingsbank.com/
But I completely, 100% disagree with you that the difference is not worth focussing on or talking about. Just because 90% don’t get it or don’t care, doesn’t mean that we should stop. Because 10% DO get it, care passionately about it, and THEY are the ones keeping us in business. We need to focus on them more, as well as find others that are like-minded. Think the difference doesn’t matter? Here’s just one example where it does, to the tune of $600,000:
http://everythingcu.wordpress.com/2007/11/27/think-your-story-doesnt-affect-your-bottom-line/
4 Brad J Garland // Feb 9, 2009 at 3:36 pm
I disagree with Jeffry on this. I think CUs have just as big of a problem with banks as the other way around (and in the online world the CUs voice is louder for sure).
I’ve been speaking to both CU leagues and banking associations lately and you see the distaste equally. They really dislike, even hate, each other.
To me, it’s childish and it has always paralleled for me to Republicans and Democrats. If we could use the differences to talk change/improvement/innovation instead of each others personality traits, I think the difference and debate could be perfectly healthy.
Thanks for the mention Mike!
5 Denis ONeil // Feb 13, 2009 at 5:07 pm
I see a fundamental difference in the cultures of these two factions. The Bank recognizes a competitive posture as part of their basic existence. The Credit Union identifies community as their means to their end. When I observe the feud, I see the Credit Unions banding together as a single entity against the individual banks. And the individual Bank seems to be competing against the Credit Union Model as a whole. In any case, I believe the competitive and fundamental nature of the Bank will keep the feud alive because it is their nature to compete. I, personally, never see a competitive nature as bad. It just is what it is.
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