In 2011, Canadian Central and the Filene Research Institute formed a research partnership that provided an opportunity to produce four joint research projects in 2011-12. The first two of these four joint publications have now been published.
The first, “Market Niches: Social and Demographic Opportunities,” written by Canadian Central’s Marc-Andre Pigeon and Filene’s Ben Rogers, looks at case studies of credit unions working to grow their member base by targeting a membership group – a market niche – that will complement the credit union, allow it to grow and keep marketing costs under control.
While this case-based approach looks at only four market niches (First Nations, Latinos, Lesbian/Gay/bisexual/ transgender, and young adults) and cannot therefore offer comprehensive guidance, it does point to some clear lessons for credit unions seeking to serve a niche market well, namely: (1) focus is key; (2) root out biases early; (3) make it somebody’s full-time job: (4) let it age; (5) partner up. The Market Niches paper is available here: http://filene.org/publications/detail/Market_Niches. (Registration required).
In the second publication, “Keeping an Eye on the Ball: Credit Unions, the Level Playing Field, and Competitive Balance,” Blayne Haggart, PhD, Visiting Scholar, Regulatory Institutions Network, Australian National University, explores how the credit union system might benefit by framing its policy discussions in terms of “competitive balance” instead of the “level playing field.”
Whereas the “level playing field” metaphor suggests images of a football game in which competitors overseen by a neutral referee following a fixed set of rules battle for supremacy, the “competitive balance” metaphor suggests handicapping in games such as golf or chess, where the goal is to ensure a good competitive game that is of interest to all parties. The former tends to focus the policymakers attention on means – treating everyone the same regardless of size, purpose or structure, whereas the latter focuses on ends, i.e., making sure that rules are structured to ensure maximum competition given differences in size, purpose or structure. The Competitive Balance paper is available here: http://filene.org/publications/detail/Competitive_Balance. (Registration required).
Canadian Central and Filene expect that the next two research papers will be released later this year, with the first examining the evolution of credit union governance in the 21st century. It will draw on the results of a North American-wide survey that ran last fall as well as structured interviews with credit union governance thought leaders. The fourth and final 2011-12 research project will look at the ways credit unions can use their financial surplus to improve member loyalty.
In addition, the Canadian Central and Filene research partnership provided Canadian Central-affiliated credit unions with access to the full Filene Research catalogue. Since then, some 450 credit union executives and their employees have registered with Filene. For those who have yet to register, visit http://filene.org/home/cucc.
If you have difficulty downloading either report, contact Les Czarnota at czarnotal@cucentral.com
