Connections Credit Union already establishes the following value propositions for their consumers.
i. Strong relationships with the current members ii. Community involvement ( conducted Blood drive at the Pocatello - Olympus Branch) iii. Offering exclusive perks and discounts for the members
Suggested Value Proposition:
i. Sustained the value of member benefits for the CU members ii. Increased involvement with the community and actively participate in community events
Developing and instituting the value proposition for any financial institution means that, only half of the task is completed in this frontier. Connections Credit Union requires to develop and maintain an execution strategy that sustains the value proposition offerings to their
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The MBA team for this project took this opportunity to conduct further research on marketing aspects for the local credit unions and discussed the market expansion prospects and developments with Mr. Chambers. The key takeaways from the discussion are illustrated below.
a. Balancing the Economies of Scale:
The current market trends for the US credit union system distinctly indicates the following,
i. Consolidation is going upwards ii. Regulatory frameworks are changing and that’s a continuous battle to watch out for iii. The largest credit unions perform much better than the smaller ones iv. Smaller credit unions tend to have more non-interest expenses compare to the larger ones and they often struggle to offer better interest rates compare to their larger peers.
Furthermore, the primary mission and vision of the credit unions to serve a specific community as a financial institution which is particularly different from any traditional bank. The market and financial growth for any business is a very desirable long-term goal, but Credit Unions need to maintain a certain growth factor, so it does not get compared with a traditional bank functioning the local