Four Conference in Four Days

I just got back from a great trip. I attended four very different conferences in four days all in my timezone!

1) IT governance course in Vancouver

I took my first formal course as a new credit union board director. It was an IT governance introductory course offered by CU Source held in Vancouver on the first day of the Credit Union Central of Canada 2012 Canadian Conference for Credit Union Leaders (yes, that is the longest conference title ever). As information technology is now the second largest expenditure at most credit unions – human resources is typically the largest – it's becoming more and more important for board members to have a deeper understanding of what's going on with the technology in place at their credit union.

Take aways: The course was a good overview, if not a little basic. The focus was more about risk mitigation versus using technology to serve members better. I suppose this will always be the case in such a heavily regulated industry, but I couldn't help feeling that the typical, cautious wait-and-see approach contradicts the notion that credit unions are smaller and, therefore, more nimble. Because most credit unions now out source so much of their IT systems, they can't be nimble – they are at the mercy and time lines of large, expensive and slow-moving vendors that have hundreds of financial institutions to service. In Canada, we're starting to see the big banks really take the lead on implementing technology tools like mobile banking and personal financial management. On a positive note, I think a smarter, more connected board is a really good thing and I appreciated the overview.

2) Filene i3 in San Francisco

I was in invited by the Filene Research Institute to be guest at the i3 group presentations. What's i3? "Ideas, innovation and implementation. Filene i3 is a work group of innovative, insightful and energetic credit union professionals who have not yet reached the CEO level, but are in a position with substantial responsibility. This creative group reflects diversity in experiences, credit union positions, geography and credit union membership. i3ers strive to be transformational leaders in building the future of credit unions and to create new ideas, innovate and implement for the benefit of the credit union industry."

Eight i3 teams, made up of three to five credit union employees, presented their finished projects to an audience of approximately 75 people.

Take-aways: It was encouraging to see the Filene i3 model in action. The credit union industry is old and largely stuck in its ways, but here is a group of people working hard to disrupt and reinvent the credit union movement from the inside out. There were two expert panels made up of accomplished entrepreneurs, scholars and academics that provided feedback to four groups each. Each expert added insightful advice couched with fairly gentle criticism. The ideas were solid, but not necessarily ground-breaking or fully baked. This is to be expected – i3ers are volunteering time outside of their jobs and day-to-day lives.

3) FinovateSpring in San Francisco

I attended the first day of FinovateSpring. Imagine 63 companies all given seven minutes each to demo their working solution to a crowd of more than 1,200 connected critics. No PowerPoint. No faking it. Here are the words that come to mind. Huge. Intense. Fast-paced. Overwhelming. Impressive. Too much. Future. Innovation. Awesome demos and products. So-so demos and products. Zuckerberg-like, T-shirt-wearing geeks rocking their demos. A few ex-bankers trying to be cool, but instead come off slightly awkward on stage.

Take-aways: Going in, I was nervous for credit unions. I was thinking that I was going to witness enormous disruption aimed at toppling incumbents. This wasn't the case. Instead, what I saw was highly polished companies with amazing software looking for partners, investors, clients and distribution channels. These start-ups are well funded with millions sunk in development and now they are looking for a return. Most were pitching the financial institutions in the crowd to implement their white-label solutions. Here are the best of show winners as determined by audience vote (in alphabetic order):

• BehavioSec for its new security layer based on user typing/swiping patterns
• BillGuard for its card charge dispute platform, BillGuard FI
• Dwolla for its FISync service to enable banks to originate real-time payments
• iQuantifi for its new financial planning and advice tools
• MoneyDesktop for its PFM platform and integrated "deals"
• Personal Capital for its iPhone app and interbank funds transfer
• SoMoLend for its P2P lending platform

It was good to see a large contingent of credit union people there, thanks, in large part, to Filene. 

One sobering note: I was struck by the contrast between the i3 pitches and the Finovate pitches. Finovate is the big leagues. The solutions presented were fully baked and ready for market. You could tell that millions upon millions of dollars had been spent before anyone stepped on stage. The demos showed that the best technology minds in the fintech space are feverishly working at solving big problems. These firms are not regulated and are not stuck in their ways.

This is not a new wake-up call for credit unions – it's the same song I've been singing for years. But what was new for me was how in my face this reality was at Finovate. These solutions are real and they're spectactular! My hope is that credit unions get onboard and partner with the best solutions to offer their members more compelling reasons to stick around. I think Filene is well positioned to facilitate this connection between Silicon Valley and the credit union industry.

4) NCGA Marketing Matters in Portland

For my last stop on my whirlwind Westcoast tour, I was the keynote speaker at the National Cooperative Grocers Association Marketing Matters conference in Portland, Oregon. I did two talks:

1. The Young & Free Story
2. Integrated Social Media Marketing

Take-aways: I learned that there are a lot of parallels between credit unions and cooperative grocers. Shared challenges include awareness and understanding, selling member shares, economies of scale and confusion with competitors – community banks for credit unions and Whole Foods and Trader Joe's for cooperative grocery stores. And wouldn't you know it, cooperative grocers are also finding it difficult to attract Gen Y! I attended the reception on day one and it was like being in a credit union parallel universe with such similar conversations!

The highlight was someone telling me, "I can't believe you made me cry about overdraft fees." Ha!

In this International Year of Cooperatives, there seems to be a heightened realization that credit unions are cooperatives and that there is potential for cooperatives of different stripes to work together. This is a good thing.

I ended my second talk with some fun. Check it out (and pardon my shaky iPhone camera work).

Tim

The importance of getting out of your bottle

Source: Justin Metz

"It's hard to think about your own business from the inside. It's like you are in a wine bottle and all you can see is the back of the label. You need to get out of the bottle from time to time."

– David C. Baker

I have been extremely fortunate to speak at more than 30 credit union conferences over the past three years. When I am in speaker mode, I concentrate on being prepared, getting there on time, making sure that the technology gods are on my side and delivering a coherent talk. If I am lucky, I may get to see a couple of other speakers before grabbing a cab to the airport. I had forgotten about the pure joy and educational value of being a conference attendee.

To listen. To ponder. To absorb. To think. To question. To talk to other people in your shoes. Without worrying about anything else. For those credit union employees reading, you should relish those opportunities to get out of your organization for a few days to learn and reflect.

I had that simple pleasure last week at the Recourses New Business Summit in Nashville, Tennessee. This three-day seminar had nothing to do with credit unions, but everything to do with my business. The curriculum is tailored specifically for principles and sales people at small marketing firms. The two main speakers – David C. Baker and Blair Enns – provided great information on positioning, marketing and selling. And two special guest – Mark O'Brien and Christopher Butler – delivered excellent advice on content strategy and thought leadership. 

The New Business Summit wasn't a typical conference where a parade of speakers give you a small taste of a variety of topics, it was more like being in a classroom setting attempting to drink from a firehose. I imagine it would be something like a CUNA Management School or a CUES Institute in the credit union world.

A major difference between this conference and a credit union conference was the lack of projected slides. Three days worth of information without one single bulleted PowerPoint slide. Just confident, expert speakers talking to their audience. It was a joyous contrast to what I am accustomed to!

I'm a long-time David Baker follower and a Recourses client. In fact, other than my father, no other individual has had more impact on my professional life than David. He has long advocated for marketing and design firms to specialize. To pick an industry or a particular service offering and get really good at that one thing. Blair Enns also believes in specialization and he has dedicated his consulting practice to helping firms stand out from the crowd in a new business setting.

This advice runs contrary to the popular thinking in the creative services field. Creative types are addicted to variety and new challenges. The thought of specialization is typically met with disbelief and deep disagreement.

I suppose the same can be said about most service industries. You are well aware that the financial services industry is populated by undifferentiated players who think that they all offer superior service! With more than 8,000 credit unions and 10,000 banks in the US and Canada all offering pretty much the same products and services, it's nearly impossible to stand out. 

Now imagine my industry. There are more than 40,000 marketing firms in the US and Canada staffed by creatives who truly believe they are the most creative!

David and Blair's advice is always simple, smart and direct. I've taken their advice to heart over the years. The more finely specialized I've made Currency in what we offer, the more opportunity has come our way and the more effective we've become at what we do. It just takes time and discipline.

If you are in the marketing business – whether it's design, interactive, public relations or advertising – you should attend the Recourses New Business Summit in 2013. It's a great way to get out of your bottle and start the year off right.

If you are in the credit union business, seek out a seminar or conference that delivers this depth of expertise and content. You'll thank me later!

Tim

CU Water Cooler Symposium on CU Broadcast

Try saying that headlne ten times fast!

Mike Lawson of CUBroadcast interviewed me about the CU Water Cooler Symposium.

If you are the fence about coming or are unsure of what this CU Water Cooler Symposium thing is, watch the video. I think I do a pretty good job of explaining and selling it!

Make sure to take advantage of the $249 earlybird ticket price. It will move to $349 on August 1.

Thanks Mike for allowing me to plug the event!

Tim

Want to attend How Magazine's Mind Your Own Business Conference? I've got a code for you!

If you are a credit union marketer, this post is likely not for you. But if you are a marketing agency or design firm owner, then this post is definitely for you!

After being in business for ten years, I attended How Magazine's inaugral Mind Your Own Business conference in Cancun, Mexico in 2000. It was a watershed moment in my professional life. Up until that point, my business had grown like wildfire, but it felt like a handful of mud. If you've every tried to keep a handful of mud from slipping through your fingers you know what I mean! In design school I was taught how to design, not how to run a business and my first decade in business was an adventure in figuring things out in complete isolation.

I learned so much at that those three days in Mexico. It was amazing. I have attended three more MYOB Conferences since and each one has been incredible. It's not cheap, but worth every penny.

Fast forward ten years later and I've been asked to speak at this year's MYOB Conference in New York. I am totally honored and excited by the opportunity.

As a speaker, I’d like to invite you to join me at this year’s event being held October 12 to 14 at the Sheraton New York Hotel & Towers.

Tailored specifically to address the challenges faced by creative-firm principals and owners, this one-of-a-kind business conference offers ways to improve your corporate positioning, grow your bottom line and realize your firm’s potential. Trust me, you'll learn a ton and meet other people in your situation.

For complete session descriptions, speaker info and everything else you need to know, visit www.MYOBconference.com.

And be sure to use discount code MTM10 to get an additional $100 off the registration rate. See you in New York!

Tim

Young, Free and Super-charged

This past Friday morning I presented in front of about 1,500 credit union CEOs and directors at the 33rd Annual Directors' Convention. This was definitely the largest crowd I have ever been in front of. I am the little scared dot on the stage in this photo!

Here is my slide deck.

The subject was Young, Free and Super-charged: Building social media campaigns that work. It was basically an overview of my thoughts on social media marketing for credit unions and a recap of the lessons learned from our eight live Young & Free regions.

I promised the folks in the audience that I would have these slides online after my presentation. Suffice it to say that the flaky hotel Internet access had other plans for me!

Tim

There actually IS meat on bacon!

Most of you have probably seen that Cheryl and I have thrown our collective hat in the ring to be the CU Water Cooler Symposium WildCard Speaker.

When you work in marketing and advertising, surrounded by fun co-workers and fun clients, on an incredibly fun and innovative product (Young & Free) it's hard not to let that spill over into contest entry for a wildcard speaker’s spot (as evidenced by our most recent campaign video).

But we want to clarify something—our presentation isn't going to focus on funny videos and bacon, it's going to delve into research we are doing with Gen Y'ers in regards to their use of social media platforms.

We are asking a cross section of young people across North America about:
• Which platforms they use
• What they actually use them for
• What they would never use them for
• And how they perceive businesses interjecting in those spaces

(just to name a few)

We will be compiling these results and sharing 3 practical ways that Credit Unions can take this information and implement a social media strategy in these spaces that will be relevant and get results.

So here’s what you need to know: yes, half of us are young and both of us are silly, but we're going to deliver a fun presentation that will leave the audience with some insight into how Gen Y is actually using social media and share information on how credit unions can get involved and get bottom line results.

We’re really excited to have a conversation about this, and if you are too, you can vote for us here:

http://www.cuwatercoolersymposium.com/vote/

Voting closes Friday at 2pm PT.

All the best,

Nala (and Cheryl)

Young & Free presentation for NCUF REAL Solutions

Yesterday, DeAndré and I joined Brent Dixon for a presentation at the REAL Solutions Winter Field Coach and League Liaison Meeting in Orlando, Florida. Brent set the stage with a 30 minute overview of social media and user-generated content and then DeAndré and I split the next hour talking about Young & Free. 

Here are the slides from DeAndré and my portion of the presentation.

Thanks to the National Credit Union Foundation for inviting us out to share our progress!

Tim

Vote for six young guys and one slightly older guy to speak at YOUR Symposium!

About two years ago, I answered an open call for speakers at the 2007 FORUM Solutions/Trabian Symposium in Fishers Indiana. I submitted my first-ever YouTube video, won the wildcard spot and had an absolute blast. In 2008, I was invited back to be the keynote speaker. This has become my favorite conference of the year. It has a very progressive vibe, the presentations are relevant and well done and the attendees are a forward-thinking group of credit union advocates.

Well, this year the format is completely different. It has been retitled YOUR Symposium and all of the speakers will be selected by the crowd. I've decided to enter the race again, but this time with the help of six friends!

Here's our application video!

The Generation Y Extravaganza

I am suggesting that the entire morning of day two be dedicated to addressing the need to attract the next generation of credit union members and employees. As silly as this video is, I really believe we can deliver some valuable advice and get some good discussion going. As I've stated before, the lack of new Gen Y members at credit unions throughout North America is not a problem that is going to just fix itself.

Truth be told, we could definitely stretch this out by an extra hour or two or it could even go for the entire day two if there is an appetite for it. I'm sure the crowd will decide!

• Tim McAlpine from Currency Marketing (9:00–9:30)
  An overview of the Gen Y issues facing credit unions and a recap of how Young & Free is going
   
  
• Brent Dixon from the Haberdashery (9:30–10:00)
  Designing for Gen Y
   
  
• Myles Peterman from Servus Credit Union, Josh Sutherland from South Carolina Federal Credit Union and DeAndre' Upshaw from TDECU (10:00–10:45)
  The Young & Free Spokesperson panel will discuss what young people really want from their financial institutions
   
  
• Andy LaFlamme from Maine State Credit Union (11:00–11:30)
  A Gen Y credit union employee's perspective
   
  
• Ben Rogers from the Filene Research Institute (11:30–12:00)
  The Chrome Credit Union idea and a selection of 30 under 30 concepts

Please vote for our entry here and do yourself a favor—attend the YOUR Symposium. It's only $225 per attendee and the cost includes two packed days of speakers, networking and six meals! I guarantee you will learn a lot, meet great people and you won't regret it. Add yourself to the network and pledge your support.

See you in Fishers, Indiana on October 7 and 8, 2009.

A note on the production of this video: This was a fun. Once everyone in the group agreed to participate, I put a loose script together and asked each member to record their lines using Apple Photobooth and the iSight camera on their Macs. This generates "Skype-looking" Quicktime files. Everyone then uploaded their files to Drop.io, I downloaded them and then put the finished video together in Final Cut Express. Easy peasy. You can see all of the clips in their full, hilarious, uncut glory here and here. There is some pure comedy gold in these clips. I'm sure some of the jokes were intended just for me, but that would be selfish! Enjoy.

Tim

Why does engaging Gen Y on the social web make sense?

Continuing where I left off with my Why Gen Y? post, let's talk about the case for engaging Gen Y on the social web. Again, the bold text is what I say in my talks. The text following is what I would say if I had a lot more time! I've taken a page from a friend of mine's book. Denise Wymore told me last year that she wasn't taken seriously until she added some charts to her presentations. You want charts? I'll give you charts!

Why utilize the social web to attract Gen Y? Because that’s where Gen Y lives! Gen Y's use of social media eclipses all other generations.

Last June, I co-presented at the Forrester Financial Forum in New York with Catherine Graeber, a Vice President from Forrester Research. Catherine spent the first 15 minutes laying the groundwork with some great data-filled slides. You can find the entire presentation here. As you can see from this slide, members of Gen Y are way more involved on the social web than all other generations.

This gap goes a long way to explaining why credit unions are slow to get involved with social media marketing. Only 10% of Baby Boomers are involved in social networking, only 9% are reading blogs and only 4% are commenting on blogs. Since the decision-makers at most credit unions are Baby Boomers and have very little understanding or interest in what's going on within this newfangled social web, it makes total sense that they are apprehensive about getting involved.

Social networking usage is only going to increase. According to Netpop Research, 105 million Americans use social media sites.

There has been a 93% increase in social networking usage since 2006. Consumers are using these sites to comment—sometimes positively and frequently negatively—about brand experiences, products and services!

Facebook and MySpace both have more than 200 million registered users worldwide. There are many other sites with significant users including YouTube, Twitter, Flickr, LinkedIn, Blogger, Wordpress and Ning to name a few. Socializing has eclipsed e-mail as the number one use of the Internet. In fact, of the top 10 most popular websites ranked by Alexa, seven of them are based on social interaction and user-generated content. There is no signs that this trend is going to slow down.

A study by Pew reveals that 75% of the 18- to 24-year-old age group have a profile within a social network. Adult Internet users participation in social networks has quadrupled in just 4 years.

This slide again proves the disparity between generations. If three quarters of the 18- to 24-year-old crowd have a profile within a social network, it is an undeniable fact that this is not a flash-in-the-pan trend. If your credit union is serious about connecting with members of Gen Y, then it makes sense to meet them on their own turf. In fact, as more and more banks and credit unions build a presence within these environments, your credit union is at a huge disadvantage if you choose to ignore this opportunity. Social media is no longer an experimental medium and needs to be taken very seriously.

There's another three slides explained! As you can see, Gen Y is all over the social web and if you are seriously considering connecting with the next generation of credit union members, you need to figure out how to get your credit union involved.

Tim

Why Gen Y? A slightly scary introduction for credit unions

I am speaking a number of times this year on the need for credit unions to attract new Generation Y members. I will be presenting it in Florida and Las Vegas in the next few weeks.

Sure, we have a number of programs that we are licensing, but my primary goal with these presentations is to raise awareness of the issues, talk about solutions and inspire credit unions to take action, regardless of whether it is with our assistance.

Clicking through a slide presentation doesn't really give you the full story. And even when presenting, I can only deliver a sentence or two with each slide, so what I thought I would do is discuss some of my thinking around a few of the key slides in longer-form blog posts. The bold text is what I say in my talks. The text following is what I would say if I had a lot more time!

Here is the all-too-real issue: there is a huge 12-year age gap in the world of credit unions.

I've heard this issue being talked about quite a bit over the past two years, but I have not seen much action. Especially this year, as the industry is paralyzed with the state of the economy and the corporate credit union nightmare.

There are a few good industry resources that have popped up including PSCU's Project New Age, Callahan's CYouth, CUNA's YES CU Community. and Filene's CU Tomorrow. Outside of our three live Young & Free programs, there are a few full-on Gen Y initiatives including Tinker FCU's Buck The Norm, Addison Avenue's The Addison Cafe, UTFCU Rocks and Shell FCU's iLife. There are also a few youth-centered blogs that are quite well done.

However, there are more than 9,000 natural-person credit unions in North America. How is it that I can only count up a dozen or so credit unions that are actually reaching out to Generation Y? Credit unions need to start chipping away at this huge gap now—it will not narrow with inaction, it will only widen.

Gen Y is 15 to 29 in 2009. They are socially conscious, they distrust companies and media and they could care less about credit unions!

These are sweeping generalizations and I know that everyone is an individual, but there are a number of common traits that connect members of Gen Y. They are confident and they believe they will change the course of history. They are tech savvy and authenticity and autonomy are extremely important. They are entering middle and high school and finishing college and university. They are planning five years ahead and looking forward to long-term relationships.

Members of Gen Y have a practical world view and are very goal oriented. They respect their parents and education. They are not health obsessive since they have their whole lives ahead of them. They are extremely social. Shopping is an event, not a chore. They have been raised in an instant-message-email-social-networked global community. They are open to spirituality but indifferent to Christianity.

Quality is cool and they spend to have fun. They heavily influence family purchases and they respond to truthful advertising. They are extremely aware of image and celebrity hype.

The cooperative, not-for-profit structure of credit unions should align perfectly with Gen Y's values and concerns, the problem is that members of Gen Y are unaware of what credit unions are all about and what they have to offer. If credit unions can connect and tell their story and compel members of Gen Y to join before the age of 25, these members are far more likely to stay than members who join later in life.

Just look at this graph. Only 4% of U.S. credit union members are between the age of 18 and 24 while the 18 to 24 crowd represents 17% of the total population.

This chart is based on information that I found from CUNA Market Research. It should scare the hell out of you! Generation Y as a whole is 34% of the population and will surpass the Baby Boomers very soon. To put it bluntly, if nothing is done about this downward trend, credit unions will cease to be relevant in the next 20 years.

I have also seen numbers from creditunions.com that peg the current percentage of 18- to 24-year-old members at about 6%. This is slightly rosier, but if this number does not move north soon, we might as well turn out the lights and call it a day!

I have heard the argument all too often, "Why would we target young people, they don't have any money?"

Oh, but they will! Seniors and Boomers will die and in the next 10 years Gen X and Gen Y will inherit over $40 trillion dollars. This will be the largest transfer of wealth in history and money will be transferring from credit unions to banks by the truckload.

This is really just simple math. If the bulk of credit union members are Seniors and Boomers and there are very few Gen Y members, this willed money will automatically be transferred to banks because that is where young people have their accounts.

I'll stop at four slides! Hopefully, I've fired you up and you will begin to think more seriously about Gen Y and the impact that this generational cohort is about to have on the credit union movement. On the bright side, I believe the future does not need to be this bleak. In my next post on the subject, I will offer some ideas on how and where to connect.

Tim