On Greed and Fear: How Credit Unions get the most out of the crisis.
by Ron Daly
Came across an article today written by Warren E. Buffett. Buffett knows money, I think that's safe to say. Read his very good article here.
Anyway, he said something in his op-ed piece that really stuck with me:
"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful."
This was one of those things that, on the first read, was smart sounding. But reading it again gave me a clarity I hadn't expected. It made me think about our industry and how we SHOULD be looking at the opportunity presented. Now, more than ever, attention is placed on the stability of credit unions versus big banks. In the midst of the big earning days of low-rate loans and bum securities, banks were greedy and CUs were fearful...fearful of loaning and mortgaging irrational sums. Naturally, lending money to people who couldn't afford to pay it back turned out to be a bad idea.
So now comes the time where CUs are thriving and banks are scrambling to make up the difference. Is this the time to drop marketing? Is this the time to be weak-willed when it comes to drawing members? Quite the contrary.
Now's when CUs need to:
1) Market Hard 2) Consider their next round of member rewards and incentives 3) Become the "Bull" of finance, not the "Bear".
You are worthy of attention, CUs - you made the right decisions at the right time and you're getting praised for that. Now's your chance to be greedy when the other financial institutions are fearful.
Great Ideas from Credit Unions Like Yours: A Home for the Brave
Ron Daly brings you another edition of "Great Ideas from Credit Unions Like Yours", highlighting great ideas and innovations in the Credit Union industry.
Sgt. Joshua Brett and his wife were having trouble getting their mortgage. The Massachusetts couple wanted a home of their own, having dealt with Joshua's distance after three tours in Iraq and the shaky housing market. With few options, they turned to a new program developed by MassHousing. The program, called A Home for the Brave, was designed to help men and women of the Armed Services find affordable housing. The mortgage requires no downpayment, has payment protection and features closing-cost assistance for eligible veterans. The loan was initiated by First Citizens' Federal Credit Union and was backed by more than fifty institutions eager to give recognition to the brave service of a Veteran.
Has your Credit Union given to the community in a special way? Is there a program you'd like us to feature? Send us a message in our comments section.
Ron Daly talks about another great innovation in the Credit Union industry.
HarborOne Credit Union saw a problem. People for whom English is a second language are frequently left out in the cold when it comes to services they might find helpful. Marketers tend to write (and think) in one language for one audience, so some services fall under the radar of a non-English-speaking household. How, then, can you have a frank and helpful conversation about finance when you are meeting with people who speak a different language than your own? Likewise, how can you ask the questions that need asking with a barrier blocking communication?
HarborOne Credit Union provided a solution: the Multicultural Banking Center. The center was opened almost one year ago and has been a ringing success, both for HarborOne and the minority and immigrant populations they were hoping to serve. Non-English speaking people, or people that use English as a second language, are often targets of predatory investment scams. With the help of the Multicultural Banking Center, these people can learn about savings, checking accounts, credit lines and the home ownership process. HarborOne extended its services to include other community outreach programs designed to get people in need on the fast track to financial security.
HarborOne's MBC program has been so successful, it is under review by the National Credit Union Foundation (NCUF) to be used as a model for future facilities of its kind.
What's your take on the Multicultural Business Center? Is your Credit Union reaching customers in new and helpful ways? Talk to us in our Comment Section.
Ron Daly discusses the best thing your teen can do for his or her future in this, the first installment of "Great Ideas from Credit Unions Like Yours". DigitalMailer will highlight great innovations in the hopes of getting others to connect, communicate, and grow.
Summer camps are a great way for kids to stay busy during those long slow days between the end and start of school. There are camps for just about everyone, whether it's sleep-away camp programs where kids get in touch with nature or day camps where kids can get experience in things like technology and acting. But where's the summer camp for kids that need to learn the value of a dollar?
Welcome to Oak Ridge, Tennessee. This year, the ONRL Credit Union is sponsoring two week-long, half-day camps called Camp Money Matters, which is specifically aimed at teens to help them get acquainted with things like checking, credit cards and savings. Best of all, the camp is free. This seems like a really great program - not only does it let kids interact with each other and give them something to do, it teaches them that money doesn't just come from nowhere and that proper investment and good planning can make all the difference.
Feel free to sound off on Camp Money Matters in our comments section.
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