By Steve Kelley
April 22, 2010
It’s Earth Day 2010, and everybody seems to be doing something to show their concern for the environment. Students are planting trees, politicians are announcing initiatives … even the National Credit Union Administration sent out a press release about how they are conserving energy and reducing waste. It’s all good.
So, how about your credit union – what are you doing? I’m sure many are sponsoring Earth Day activities in their communities, and others no doubt have been taking steps to reduce their carbon footprint in one way or another. But, if you’d like to do even more, BCI would like to help.
Over the last several weeks we’ve been talking about saving money by conserving energy (watch our “Why Conserve Energy?” video series here), and have rolled out a suite of energy conservation services aimed at making credit unions the most energy-efficient financial institutions in the country. And now, to celebrate Earth Day, we have a special offer.
Today and tomorrow (April 22-23, 2010), we’ll give any credit union that contacts us (by clicking here or calling 1-800-222-1509) an initial energy use audit of their utility bills free of charge! In the audit, we’ll compare your utility use to Department of Energy benchmarks and determine how much money you could save by making your buildings more energy-efficient. Then, if you’re interested, we’ll be happy to talk about how we can help you actually make the needed changes.
Talking about helping the environment is good. So is planting trees, reducing waste, and all those other things we like to do on Earth Day. But, saving the Earth while saving money – maybe lots of money? Now, that’s a celebration! Call us today, and join the party!
Thursday, April 22, 2010
Tuesday, April 20, 2010
It’s not just about the cards: are your branches “debits” or “credits”?
By Steve Kelley
I was buying gas the other day at the convenience store down the block (what’s up with these gas prices, anyway?), swiping my card at the pump, when the question came up on the little screen: debit or credit? Now, I was using a debit card linked to my checking account, but it actually works on both systems. So, I had to decide which way I wanted the transaction handled, and push the appropriate button before I could get the gas. (I chose debit for some reason, even though choosing credit would give my credit union a bigger share of the transaction. Sorry, fellow members!)
If you’re like me and use plastic to buy everything from a loaf of bread at the corner market to hundreds of dollars’ worth of building supplies at the local Big Box store, “debit or credit?” is probably a question you’ve become accustomed to answering. In another vein, though, “debit or credit” is a question people who run credit unions ought to be asking themselves often, about many aspects of their operations: Is this a debit or a credit? Is it taking away from, or adding to, the overall success and well-being of our credit union and its members?
This may seem obvious. “Of course,” you might say, “we ask ourselves that question about everything we do. And we would never do anything that detracted from our credit union or our members!” But is that really the case? Or are there some things that you’ve been doing for so long that you can’t really say when or how you made the decision to start doing them, and once you started you never questioned their value? Like running ads with your current CD rates in the local paper every week, even when your rates are the lowest in town and you don’t really want any new deposits? Or offering three checking accounts even though 98% of your members choose the “free” option, and maintaining the “premium” accounts for the few who choose them is actually costing you money?
I’m convinced that asking the “debit or credit” question is something we have to be intentional about, because it’s just too easy to keep doing things the way we always have without being sure about the value of those actions. And one area where I think that’s especially important is when it comes to our branches – because the credits can be substantial, but the debits could be costing us more than we know. For instance:
· Is our location down the block from our largest SEG a credit because it’s convenient for members who work there, or is it a debit because much of the banking is done by spouses who live and work on the other side of town?
· Is the fact that we have 10 teller stations in our lobby a credit because we can staff up to meet rising demand, or is it a debit because we never have more than 4 tellers working and members wonder why we don’t fill those empty stations to make their wait shorter?
· Is our low-key exterior a credit because it shows we’re not all highfalutin like our big bank competitors, or is it a debit because potential members don’t even know we’re there?
· Is holding off on expansion a credit because caution is important in times like these, or is it a debit because we’re missing out on some of the lowest land and construction prices in years?
· Is spending money on becoming more energy-efficient a debit because we just don’t have the money right now, or is it a credit because we’ll get the investment back quickly through savings and people will respect us for being good corporate citizens?
These are just some of the hundreds of questions we ought to be asking ourselves about our branch networks, and about everything else we do, over and over again. And when we do, we need to take action to eliminate the debits and turn them into credits. It’s a never-ending process, but a required one if we’re going to win in this ever-more-competitive market.
Now, who’s going to do something about these gas prices?
I was buying gas the other day at the convenience store down the block (what’s up with these gas prices, anyway?), swiping my card at the pump, when the question came up on the little screen: debit or credit? Now, I was using a debit card linked to my checking account, but it actually works on both systems. So, I had to decide which way I wanted the transaction handled, and push the appropriate button before I could get the gas. (I chose debit for some reason, even though choosing credit would give my credit union a bigger share of the transaction. Sorry, fellow members!)
If you’re like me and use plastic to buy everything from a loaf of bread at the corner market to hundreds of dollars’ worth of building supplies at the local Big Box store, “debit or credit?” is probably a question you’ve become accustomed to answering. In another vein, though, “debit or credit” is a question people who run credit unions ought to be asking themselves often, about many aspects of their operations: Is this a debit or a credit? Is it taking away from, or adding to, the overall success and well-being of our credit union and its members?
This may seem obvious. “Of course,” you might say, “we ask ourselves that question about everything we do. And we would never do anything that detracted from our credit union or our members!” But is that really the case? Or are there some things that you’ve been doing for so long that you can’t really say when or how you made the decision to start doing them, and once you started you never questioned their value? Like running ads with your current CD rates in the local paper every week, even when your rates are the lowest in town and you don’t really want any new deposits? Or offering three checking accounts even though 98% of your members choose the “free” option, and maintaining the “premium” accounts for the few who choose them is actually costing you money?
I’m convinced that asking the “debit or credit” question is something we have to be intentional about, because it’s just too easy to keep doing things the way we always have without being sure about the value of those actions. And one area where I think that’s especially important is when it comes to our branches – because the credits can be substantial, but the debits could be costing us more than we know. For instance:
· Is our location down the block from our largest SEG a credit because it’s convenient for members who work there, or is it a debit because much of the banking is done by spouses who live and work on the other side of town?
· Is the fact that we have 10 teller stations in our lobby a credit because we can staff up to meet rising demand, or is it a debit because we never have more than 4 tellers working and members wonder why we don’t fill those empty stations to make their wait shorter?
· Is our low-key exterior a credit because it shows we’re not all highfalutin like our big bank competitors, or is it a debit because potential members don’t even know we’re there?
· Is holding off on expansion a credit because caution is important in times like these, or is it a debit because we’re missing out on some of the lowest land and construction prices in years?
· Is spending money on becoming more energy-efficient a debit because we just don’t have the money right now, or is it a credit because we’ll get the investment back quickly through savings and people will respect us for being good corporate citizens?
These are just some of the hundreds of questions we ought to be asking ourselves about our branch networks, and about everything else we do, over and over again. And when we do, we need to take action to eliminate the debits and turn them into credits. It’s a never-ending process, but a required one if we’re going to win in this ever-more-competitive market.
Now, who’s going to do something about these gas prices?
Friday, March 26, 2010
Yes, we can … make credit unions America’s most energy-efficient financial institutions!
By Steve Kelley
Unless you’ve been hiding under a rock (and some of you may wish you had been), you know that our president has recently signed into law one of the most far-reaching pieces of legislation ever enacted – or at least, enacted in most of our lifetimes. And whether you like it, hate it, or fall somewhere in between, you have to admit: there are going to be some dramatic changes around here, though it may take a while before the full impact is known.
Here at BCI, we’ve been working on something that we think could bring about some dramatic changes as well, at least for the credit union movement. Difference is, we don’t think it’s really going to take so long for these changes to make an impact (and we’re quite certain the impact will be a positive one!).
In our now-completed “Why conserve energy?” video series, we’ve shared our view of most energy conservation programs: that they tend to focus too much on large buildings or new construction, ignoring 98% of existing commercial buildings because they are smaller than 100,000 square feet. And we’ve told you how much money could be saved by retro-commissioning those smaller buildings ($34 billion or more?) and specifically, how credit unions could save at least $23 million annually.
Well, the time for talk is past; it’s time we actually did something about making credit union buildings more energy-efficient. That’s why we’re now offering a suite of energy-efficiency services, including initial energy use audits (free in some cases), comprehensive retro-commissioning studies conducted by qualified engineers, and complete implementation of retro-commissioning projects. We’ll even offer to do some projects with no up-front cost, letting the energy savings pay for the work.
You see, we truly believe that credit unions can and should become the most energy-efficient and environmentally-responsible financial institutions in the country, all while saving millions of dollars in annual energy costs. In addition to the savings, we think the branding opportunities and potential goodwill benefits are enormous.
But it’s not what we think that matters – it’s what you think. So post a comment to let us know. And if you’re involved in operating credit union buildings, contact us at http://www.bcihq.com/contact/contact.cfm to see how we can help you save money by conserving energy. We’ll all be glad you did.
Unless you’ve been hiding under a rock (and some of you may wish you had been), you know that our president has recently signed into law one of the most far-reaching pieces of legislation ever enacted – or at least, enacted in most of our lifetimes. And whether you like it, hate it, or fall somewhere in between, you have to admit: there are going to be some dramatic changes around here, though it may take a while before the full impact is known.
Here at BCI, we’ve been working on something that we think could bring about some dramatic changes as well, at least for the credit union movement. Difference is, we don’t think it’s really going to take so long for these changes to make an impact (and we’re quite certain the impact will be a positive one!).
In our now-completed “Why conserve energy?” video series, we’ve shared our view of most energy conservation programs: that they tend to focus too much on large buildings or new construction, ignoring 98% of existing commercial buildings because they are smaller than 100,000 square feet. And we’ve told you how much money could be saved by retro-commissioning those smaller buildings ($34 billion or more?) and specifically, how credit unions could save at least $23 million annually.
Well, the time for talk is past; it’s time we actually did something about making credit union buildings more energy-efficient. That’s why we’re now offering a suite of energy-efficiency services, including initial energy use audits (free in some cases), comprehensive retro-commissioning studies conducted by qualified engineers, and complete implementation of retro-commissioning projects. We’ll even offer to do some projects with no up-front cost, letting the energy savings pay for the work.
You see, we truly believe that credit unions can and should become the most energy-efficient and environmentally-responsible financial institutions in the country, all while saving millions of dollars in annual energy costs. In addition to the savings, we think the branding opportunities and potential goodwill benefits are enormous.
But it’s not what we think that matters – it’s what you think. So post a comment to let us know. And if you’re involved in operating credit union buildings, contact us at http://www.bcihq.com/contact/contact.cfm to see how we can help you save money by conserving energy. We’ll all be glad you did.
Thursday, March 25, 2010
The cat’s out of the bag: how does $23 million in annual savings grab you?
By Steve Kelley
If you’re a regular reader of this blog (or follow us on Twitter or YouTube), then you’re probably aware that we’ve launched a video series focusing on energy conservation in credit union buildings. The first three episodes are already out, and three more are on the way. I hope you’re watching, and inviting others to do so as well.
In Episode 3, which went online yesterday, we finally disclosed how much our engineers think credit unions could save annually in energy costs if they underwent retro-commissioning (a comprehensive process of making a building more energy efficient): over $23 million. I don’t know about you, but to my way of thinking, that’s a significant amount, especially at this time of mounting loan losses and disappearing capital.
Of course, these savings wouldn’t come without cost. We estimate that to realize the $23 million in annual savings, credit unions would have to invest approximately $57 million. And yes, that’s a lot. But if you do the math, it means that the initial investment would be recouped in just under two-and-a-half years. And if the savings continued for 10 years (they should do at least that), you’d have net savings of $173 million. That’s an ROI of just over 300%. Slightly better than the current T-bill, wouldn’t you say?
So, wondering why making credit union buildings more efficient hasn’t been talked about much before now? We’ll discuss that in our remaining videos, and we’ll also tell you what we plan to do about it. We hope you’ll watch, and join the conversation. And most importantly, we hope you’ll join us in doing something to make your buildings more efficient, and save your share of that $23 million per year. Don’t you owe your members at least that?
If you’re a regular reader of this blog (or follow us on Twitter or YouTube), then you’re probably aware that we’ve launched a video series focusing on energy conservation in credit union buildings. The first three episodes are already out, and three more are on the way. I hope you’re watching, and inviting others to do so as well.
In Episode 3, which went online yesterday, we finally disclosed how much our engineers think credit unions could save annually in energy costs if they underwent retro-commissioning (a comprehensive process of making a building more energy efficient): over $23 million. I don’t know about you, but to my way of thinking, that’s a significant amount, especially at this time of mounting loan losses and disappearing capital.
Of course, these savings wouldn’t come without cost. We estimate that to realize the $23 million in annual savings, credit unions would have to invest approximately $57 million. And yes, that’s a lot. But if you do the math, it means that the initial investment would be recouped in just under two-and-a-half years. And if the savings continued for 10 years (they should do at least that), you’d have net savings of $173 million. That’s an ROI of just over 300%. Slightly better than the current T-bill, wouldn’t you say?
So, wondering why making credit union buildings more efficient hasn’t been talked about much before now? We’ll discuss that in our remaining videos, and we’ll also tell you what we plan to do about it. We hope you’ll watch, and join the conversation. And most importantly, we hope you’ll join us in doing something to make your buildings more efficient, and save your share of that $23 million per year. Don’t you owe your members at least that?
Thursday, March 18, 2010
What part of $34 billion could credit unions save?
OK, so we've established that there's plenty of money to be saved by conserving energy in smaller commercial buildings. Now, it's time to get to the heart of the matter: how much could credit unions save?
In Episode 3 of our "Why conserve energy?" video series, titled "Could conserving energy make a difference for credit unions?" we switch our focus to the 20,000 credit union facilities in the U.S. and their potential for meaningful savings.
Click here to watch this video, and invite others to watch it and join the conversation. We're anxious to hear what you think!
In Episode 3 of our "Why conserve energy?" video series, titled "Could conserving energy make a difference for credit unions?" we switch our focus to the 20,000 credit union facilities in the U.S. and their potential for meaningful savings.
Click here to watch this video, and invite others to watch it and join the conversation. We're anxious to hear what you think!
Wednesday, March 10, 2010
“Going green” to save green is good, but haven’t we missed something?
I read a good article this week by Leigh Anne Terry of Callahan and Associates on CreditUnions.com (5 Ideas Your Credit Union Can Take to the … Bank) that should probably be required reading for everyone in the credit union movement. Ms. Terry makes the point that “going green” and “saving green” aren’t mutually exclusive. We couldn’t agree more.
Though you ought to read the article for yourself, the gist of it is that there are a number of environmentally-friendly things that credit unions can do that will either save money or expand business opportunities. The five she lists include going paperless where possible, making loans for environmentally-friendly vehicles (including bicycles), using “green” architecture when building new buildings (BCI can help you with that!), making home loans for environmentally responsible dwellings, and offering remote capture to cut down on the trips members have to make to a branch.
These are all great ideas, and I would encourage every credit union to explore putting them into practice. But there’s another idea, one that doesn’t seem to have gotten much play yet, that could have enormous impact on credit unions’ bottom line and their standing in the global community: saving money by conserving energy in existing credit union facilities.
In her article, Ms. Terry encourages credit unions to go green when building new buildings, but the fact is that there are thousands of credit union buildings already in operation that are wasting millions of dollars per year in energy consumption. If we want to make an impact on the environment and become financially sound, it’s time we started talking about how to fix those existing buildings.
At BCI, we’re ready to do just that. This week we’ve launched a video series aimed at starting a conversation about conserving energy in existing credit union buildings. Episode 1 is on our website now; several more will follow in the coming days. I hope you’ll watch, give us your comments, and otherwise join the conversation.
Credit unions should absolutely be doing all they can to help the environment … and their own bottom lines. Great business and branding opportunities are out there. What are we waiting for?
By Steve Kelley
http://www.bcihq.com/
Though you ought to read the article for yourself, the gist of it is that there are a number of environmentally-friendly things that credit unions can do that will either save money or expand business opportunities. The five she lists include going paperless where possible, making loans for environmentally-friendly vehicles (including bicycles), using “green” architecture when building new buildings (BCI can help you with that!), making home loans for environmentally responsible dwellings, and offering remote capture to cut down on the trips members have to make to a branch.
These are all great ideas, and I would encourage every credit union to explore putting them into practice. But there’s another idea, one that doesn’t seem to have gotten much play yet, that could have enormous impact on credit unions’ bottom line and their standing in the global community: saving money by conserving energy in existing credit union facilities.
In her article, Ms. Terry encourages credit unions to go green when building new buildings, but the fact is that there are thousands of credit union buildings already in operation that are wasting millions of dollars per year in energy consumption. If we want to make an impact on the environment and become financially sound, it’s time we started talking about how to fix those existing buildings.
At BCI, we’re ready to do just that. This week we’ve launched a video series aimed at starting a conversation about conserving energy in existing credit union buildings. Episode 1 is on our website now; several more will follow in the coming days. I hope you’ll watch, give us your comments, and otherwise join the conversation.
Credit unions should absolutely be doing all they can to help the environment … and their own bottom lines. Great business and branding opportunities are out there. What are we waiting for?
By Steve Kelley
http://www.bcihq.com/
Monday, February 15, 2010
Help Members, Help Your Bottom Line
Denise Senecal, Research Manager, Callahan & Associates, Inc
Callahan & Associates' latest Internet Strategy Consortium survey reveals members will focus on saving money and reducing debt in 2010. The Consortium surveyed 10,049 online members; questions focused on members' financial goals for 2010, along with their plans for new accounts, loans, and refinancing. Results from the study underscore the opportunity for credit unions to open new accounts this year. Eight in 10 members reported interest in a new loan, a refinanced loan, or a new account in 2010.
The number of members saying they are secure (i.e, they have savings or investments) increased from 16% in 2009 to 21% in 2010; however, approximately 25% of members report being on the edge: Twenty three percent report they are just trying to cover their bills, and 3% say they are over their head.How Can the Credit Union Help Members?The survey asked members with a less-than-stable financial situation to identify ways their credit union could help them improve their financial situation. Member feedback indicates several opportunities for credit unions in terms of financial education and loan refinancing. Budgeting is a problem for these members. Twenty-six percent are interested in online budgeting tools, and 14% desire budget counseling. Offering personal financial management (PFM) tools is one way the credit union can help members budget and track their expenses. Gen Y members are particularly interested in these tools, with 39% expressing interest. One Gen Y-er stated the desire for: "An online tool that shows where and how I spend my money: grocery stores, gas, eating out, bills, etc."Twenty percent of respondents are interested in consolidating credit card debt, indicating some members are struggling in this area. One respondent said:"Help with credit card debt would allow my savings goals to be met."Mortgage loan refinancing is another opportunity for the credit union to help members, as 13% of respondents indicated an interest in refinancing a mortgage from another financial institution. A respondent suggested one way to incentivize refinancing:"Reduce my monthly mortgage payments without requiring upfront money."As recession fallout – such as unemployment and wage reductions – impacts members, the credit union should offer tools to help its members improve their finances. According to survey feedback, many members are uncertain as to how their credit union can help them. So credit unions also need to ensure those programs are effectively marketed.
Callahan & Associates' latest Internet Strategy Consortium survey reveals members will focus on saving money and reducing debt in 2010. The Consortium surveyed 10,049 online members; questions focused on members' financial goals for 2010, along with their plans for new accounts, loans, and refinancing. Results from the study underscore the opportunity for credit unions to open new accounts this year. Eight in 10 members reported interest in a new loan, a refinanced loan, or a new account in 2010.
The number of members saying they are secure (i.e, they have savings or investments) increased from 16% in 2009 to 21% in 2010; however, approximately 25% of members report being on the edge: Twenty three percent report they are just trying to cover their bills, and 3% say they are over their head.How Can the Credit Union Help Members?The survey asked members with a less-than-stable financial situation to identify ways their credit union could help them improve their financial situation. Member feedback indicates several opportunities for credit unions in terms of financial education and loan refinancing. Budgeting is a problem for these members. Twenty-six percent are interested in online budgeting tools, and 14% desire budget counseling. Offering personal financial management (PFM) tools is one way the credit union can help members budget and track their expenses. Gen Y members are particularly interested in these tools, with 39% expressing interest. One Gen Y-er stated the desire for: "An online tool that shows where and how I spend my money: grocery stores, gas, eating out, bills, etc."Twenty percent of respondents are interested in consolidating credit card debt, indicating some members are struggling in this area. One respondent said:"Help with credit card debt would allow my savings goals to be met."Mortgage loan refinancing is another opportunity for the credit union to help members, as 13% of respondents indicated an interest in refinancing a mortgage from another financial institution. A respondent suggested one way to incentivize refinancing:"Reduce my monthly mortgage payments without requiring upfront money."As recession fallout – such as unemployment and wage reductions – impacts members, the credit union should offer tools to help its members improve their finances. According to survey feedback, many members are uncertain as to how their credit union can help them. So credit unions also need to ensure those programs are effectively marketed.
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