The financial landscape is changing rapidly. As newer fintechs and neobanks tout their digital experiences they fall short on substance and real value. Standing out to potential new members can be difficult amid all the noise and excitement of the "new". Your credit union has a unique value proposition that is supported by your constant commitment to serve your members and your community.

Communicating your credit union difference to potential new members, and creating awareness of the value-alignment, offers a positive and trusted alternative to the shiny and flashy financial offerings So, the big question is, how do you do that?

A unique value proposition is a declaration that clearly explains to your potential members what makes you different from others and how your products and services align with their values while addressing their needs. Since credit unions are not-for-profit financial organizations, founded on values like democratic member control, autonomy and independence, and concern for community, they have an advantage in this current marketplace in being able to resonate with new members. In a study done by Washington University, they found that 82% of consumers will spend more with organizations that resonate with values that matter to them.

To be clear, the credit union cooperative principles are admirable values but they do not make up the entirety of an individual credit union’s unique value proposition. However, the values alignment of the credit union cooperative principles is a great place to start thinking about a unique value proposition. On a recent virtual training, Anne Legg of THRIVE strategic services did a wonderful job of framing the idea of a unique value proposition saying “it is an expression of passion that credit unions have for their members[...]that credit unions provide that is uncharacteristic of for-profit financial institutions.” Anne calls this the “Credit Union Hug,” and talks about how we can see examples of a credit union's unique value proposition through investigating those powerful “goosebump moments.”

During the training, Miriam Ackerman shared an example of a goosebump moment she heard from credit union leader Pace Josey, on a podcast episode of Imagine the Difference. In his years of serving in credit unions this was one of his favorite member stories. Something that has stuck with him and continues to influence decisions in his career. This goosebump moment starts with a man coming into his credit union looking for a very small personal loan to buy steel-toed safety work boots for his new job. As it turns out he had been hired after a long, discouraging stint of unemployment and was eager to get back to work. As the loan officer drafted the paperwork for the member, his story touched the hearts of the credit union staff. Subsequently it is revealed that while he was distracted by the loan officer, the credit union employees bought the work boots he needed and gave them to him with no strings attached.

Likely there are many goosebump moments that you, as a credit union, can point to which could help you uncover your unique value proposition. Stories like these need to get beyond the four walls of the credit union to share the true impact that credit unions have on their communities. Strategically telling stories like these in wider marketing efforts is essential to communicating a credit union's unique value proposition to the larger marketplace of financial consumers. As you move into 2023, think about the types of stories your credit union can share to attract value-aligned consumers away from financial institutions that don't have their best interests at heart.

Click on the image to watch Dan Stoltz the CEO of Spire Credit Union talk about giving with your heart

Unique Value Proposition: Differentiate Your Credit Union