BY SCOTT MCCLYMONDS
Is your credit union capitalizing on the dissatisfaction small and medium-sized businesses tend to display toward banks? Seizing such an opportunity and focusing on this often overlooked segment could pay off big time for your CU. These five ways of thinking will help your CU skyrocket its SMB profits and better serve its community.
Today I’m going to break away from my discussion of management systems and focus on a topic I think is of paramount importance to credit unions. That is small and medium-sized businesses (SMBs).
Besides being a small business owner myself, I know many other small business owners, and generally speaking, they are largely underserved by and unhappy with their banks. The benefits forward-thinking credit unions can bring to them are valuable, and the opportunity for credit unions to help is immense.
I feel so strongly about this that I told the crowd of board members and senior managers at the credit union conference I spoke at today that the number one opportunity for credit unions to impact their communities is by increasing their focus on SMBs.
When you consider that small business job creation directly contributes to the health and well-being of your community and its residents, developing expertise to help SMBs grow and prosper seems like a natural fit for the credit union mission. Most small business owners I know, particularly those early in their entrepreneurial career, fall well within the federal government’s charter of serving Americans of modest means.
From my experience as both a banker and small business owner, I can personally vouch for the fact that SMBs are one of the most overlooked and underserved segments in the banking world. There are three primary reasons for this costly omission: