The Google Chrome and open source market was an interesting parallel due to Google and Mozilla (makers of the most popular open source browser, Firefox) are actually big supporters of each other. Mozilla knows that some of their users might convert to Firefox, but both companies are actually competing together against Microsoft. Their fight for open source is somewhat similar to our fight for the credit union movement.

Take credit unions in Austin, TX for example. Even though they are competitors, they often work together in the community. Most of the CUs here are part of a local network of free ATM machines. If a member of credit union A goes to a credit union B ATM, there is no fee. There is also a nationwide shared branching network of credit unions that allows members of an Austin credit union to make deposits or withdrawals at a credit union clear across the country or an Alaskan credit union member to make transactions here in Austin.

You are brilliant. The Starbucks comparison is so right on. AND unlike WalMart whose goal was to drive out the mom & pop stores, Starbucks actually helped those (that chose to stick it out and not freak out). Many people discovered the “coffee shop” through the hype that came with the Starbucks brand, and then realized they could buy a similar experience – but it would be from local people.

That was a niche that Starbucks helped exploit.

While I agree credit unions (in most cases) lost their original niche (sponsor) they can find another one by applying the same values of “people helping people” and “common bond.”

You just have to work a little harder……

What won’t work is for these CUs to continue to do the same thing. If they do, they end up being a commodity. Everyone has free checking.

Think about all the Starbucks that came into towns where there were local coffee shops. Some local coffee shops folded up and died but some changed their strategy, continued to build relationships and are still thriving.