e-checking

Fueled by the conversation with Trey and Matt today, e-checking accounts have been weighing heavily on my mind as another opportunity for CU’s. Paperless checking, e-checking, whatever the branding is, CU’s need to have an account that meets the needs of that particular segment.

We had a brainstorming session today about our currently liquidity position, the upcoming cyclical decrease in share balances, and how we can hold it off. Both high-yielding savings accounts and e-checking came up as the possible solutions. From the liquidity standpoint, the high rate savings will save CU’s in a liquidity crisis better than an e-checking. And the existing “core” members of the CU’s most likely won’t be attracted to e-checking account. But in 10 to 20 years, the current e-checking members will be that core membership.

A liquidity crisis causes CU’s to think very short-term and they can lose focus very quickly if they don’t maintain that long term vision: Grow and serve your membership!