REVIEW THE WEBINAR PRESENTATION
Open the presentation used by Randy Karnes at the September 13th Focus Group webinar.
Let the CU*Answers Board of Directors know what you think but leaving a comment at the bottom of this page.
A Message From CEO Randy Karnes
For the last couple of years at the Leadership Conference and CEO Strategies events we’ve been talking about Internet Retailing. While most people can get excited about things like mobile apps and opening memberships online, as an group we seem to be split down the middle when it comes to the concept of a 7-day business week as the new norm.
Camp 1: The 5- or 6-Day Business Week
There are two camps: the first camp wants members to have 24×7 access to their money through plastics and web channel solutions. That access, though, is controlled through either 5 or perhaps 6 processing days per week.
Granted, there are a few CUs open on Sundays and who pay us a special fee to allow for teller transactions to be posted 7 days a week. But even that arrangement is based more on allowing the teller line to be open than on what other regular processes run 7 days a week. When it comes to how all transactions are processed, including automatic transfers, collection processing, etc., the credit union’s business week closes on Saturday and immediately opens on Monday. We do not cycle through Sunday as a normal business day.
This approach has more to do with financial service charter rules and the Federal Reserve than it does with technology. We do have options to be available 24×7 to our members, and to process more effectively.
Camp 2: The 7-Day Business Week
That’s where the second camp comes in. They want CU*Answers to make 7-day processing the norm, the expectation, and the platform from which we all evolve forward in the future. With this approach, 7-day processing would be free and there would be no fees for being open on Sundays. A credit union would not necessarily open their teller line on Sunday; we would simply run beginning- and end-of-day and all of the normal accounting processes as if Sunday was a business day.
We Need Some Champions
Unfortunately, this split seems to be about 50/50, and there are no real champions moving forward to push our network to make a decision to stay where we are or move towards a different future. So far no credit union compliance officers have come forward with their ideas. No accounting team leaders have made their preferences known. And no CEO has actually pushed for this change as a champion of their credit union’s investment in CU*Answers.
Thus the new focus group event. At this session we’ll discuss either delaying a change of the status quo or moving to something new.
You might be asking yourself, what’s the big deal? Let CU*Answers process away! But many people wonder about how adding a 7th day would be seen by state banking departments or regulators. And no group has taken the challenge to really dive in and study what CU*Answers would use as a corporate policy for making these moves.
CUs that are open 7 days a week now do have to live with the automated processes included in end-of-day as a default, such as seven days of reports and balancing tasks. We haven’t modified any processes based on any special design; we just run Sunday like any other day. But if we ran Sundays that way for every credit union, would that be good enough?
Investments for Our Future
Without a doubt, there will be expenses for CU*Answers to modify and move forward with a new platform based on 7 days a week, and I would prefer that we did so based on shareholder support for making those moves.
This question will come up in the CU*Answers boardroom again as we start the 2018 business year. Without vocal support by stakeholders, I see no reason for the CU*Answers board of directors to vote for changing to a 7-day week. This focus group will be your credit union’s opportunity to get the ball rolling, or let the decision ride another year.
So please add your voice to the conversation. Leave a comment below or don’t hesitate to contact me directly.
The chef for this recipe: Randy Karnes