By now, most have you will have heard about NAFCU’s big announcement made earlier this week: we have opened our association to federally insured, state-chartered credit unions, as associate members.
It’s big news in some ways – but business as usual in other ways. For instance, we already had federally insured, state-chartered members because NAFCU has a “once a member, always a member” policy, and federally chartered credit unions sometimes change their charter. But it’s big news because we feel that it is a big, positive step in the right direction for our members and the credit union industry.
Everyone has heard that “change can be good,” but what about disruption? Disruption is a big word in management circles these days – and there’s a good reason for that. Many industries out there seem to have made “Do not disturb” their motto – things went pretty well for them in the past, so they’re trying not to mess things up. But as the credit union industry knows all too well, change will happen whether we like it or not.
Silver Peak Systems CEO David Hughes put it this way: “The current environment favors those who are working to create their own waves, with their own disruptive innovation, as opposed to those who try to anticipate and react to what may happen to them.”
The Harvard Business Review defined disruptive innovations as follows: they “may lack certain features or capabilities of the established goods … they are typically smaller, more convenient, and less expensive, so they appeal to new or less-demanding customers.” The HBR was thinking of companies like Southwest, which became famous for offering inexpensive, “no-frills” flights. But I believe NAFCU can – and will – be disruptive in the same positive way.
If something does not fall into the following three buckets – advocacy, education, and compliance – we’re not going to do it. That’s our strategy, and it will not change – even as we accept new associate members. Our new members need the same things our current members need: excellent advocacy on Capitol Hill and at regulatory agencies, comprehensive education on the latest issues affecting credit unions, and fast and effective help from our regulatory compliance staff. These are the things we do best – and these are the things we’re offering to new members. So in other words, it's business as usual.
If that means we’re “no-frills,” then I’ll take it. It’s better to disrupt things than to wait to see what happens and keep your head down. I’m excited to see where this latest disruption takes us, and I’m confident that we’ll be ready for whatever the future brings.