Posts

/by

Here Comes Bluebird—Walmart Ventures Further into Banking

Walmart has continued its mission to provide low-cost financial services by partnering with American Express to offer the Bluebird card.

“It’s a checking and debit alternative to appeal to tens of millions of customers that just aren’t getting the value they’re expecting (from other banking methods),” Daniel Eckert, vice president of financial services for Walmart U.S. says.

How does the card stack up?

Visit https://bluebird.com/ for additional information.

There are some fees associated, but they are more-or-less easily avoidable.  Other popular prepaid cards, such as Chase Liquid, charge a monthly fee of almost $5.  Many also charge to load cash onto cards, to contact customer service or withdraw money from an ATM.  Bluebird offers ways to avoid many of these fees entirely.

The launch of this new product, combined with the shifting habits of consumers, can provide material opportunities and/or challenges for credit unions.  It is up to each to think strategically about the implications considering their unique strategy and target market.

Please also consider the following.

/by

Why Do Members Value Your Credit Union?

This seems like a simple question with a simple answer.  Far from simple, we often find that when we ask this of credit unions, it leads to great strategic discussion about who the credit union is serving versus who the credit union wants to serve, as well as how.

Value can generally be funneled into four different points – service, product, price and convenience.  These four points are how businesses operating in the same industry or even selling the same product differentiate themselves and attract consumers.

Take Walmart and Nordstrom for example.  Both are well-known retail chains but compete on different points.  Walmart primarily competes on price by selling products cheaper than their competitors.  Nordstrom, on the other hand, primarily competes on service by taking a customer-centric approach.

For credit unions, understanding what members value is highly important, as financial institutions often “look” the same.  Boards and managements should rank what they think members value most and discuss any differences within the group. They should also define what service, product, price and convenience mean.  For example, does convenience mean branches, technology or the time it takes to get a loan?

Once answered, the credit union can develop strategic initiatives and focus resources on enhancing their value to their membership.