Conference 7.286::dcu

Dan answer my mail invitation indicating that he will be unable to have much
participation in the notes file until next week, due the need to help close
business for Digital.  Sounds like the right priority to me.

Bob

In the GMA, DCU seems to be comparable and competitive to the banks against
which Credit Union management has chosen to benchmark.

In some areas where DCU does business, there are other institutions which 
provide more services or other competitive advantages such as longer hours
or lower-priced/free checking.

A third category remains where DCU members have neither easy branch access nor easy/free ATM access.

Given the two environments outside of the DCU's benchmark scope (GMA), what
enhancements or competitive changes would you foresee if you are elected?

Thanks,
BobW

OK, so here I am ... better late than never, I guess ...

First, my ballot statement ...



Our credit union has made tremendous progress the last few years.  From
Real Choices to 3Gs, we have worked hard, sacrificed much, owed gratitude
to many, and seen the fruits of our labors.  Now, there are no fees on
basic checking.  Savings rates have been increased.  More fee cuts/elimin-
ations are on the horizon. We can look forward to a new CEO who likely
shares our vision.  Now it is time to cement the legacy of the true
credit union philosophy at DCU.

The primary business of a credit union should be making loans to members.
I believe this should also be our primary investment strategy.  By offering
superior products, a strong capital ratio would result naturally, rather
than by micromanagement.  This strategy increases total assets, generates
increased revenue, and earns profit for the owners - us!

DCU should offer products, services, and pricing structures that encourage
members to use DCU as their primary financial institution.  To this end,
we must benchmark against and compete with other credit unions, not banks.
We must then deliver this message - not just to our members, but to our
entire field of membership.  

DCU must always engage in open, effective two-way communication with our
members, and provide first-rate customer satisfaction, as measured *and*
interpreted by our members.

I have been a software engineer at Digital for nine years, providing
customer support for video and printer products, and currently serve
on DCUs Credit Appeals Committee.  I have experience in investing, 
personal financial management and asset allocation; operation of stock,
bond and other financial markets; and the mortgage and banking businesses.
I have the ability to apply engineering discipline and basic problem 
solving techniques to other fields.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
 

Sorry for my lengthy absense in here.  Work is, well ... *work*.

Anyway, to respond to .2, there's a lot to say on the questions
you ask and the issues you raise.  And, some of them seem to tie
together.

First (because it's probably quickest), DCU needs to benchmark
against local/GMA credit unions, as well as local banks. Let's
keep benchmarking against a few larger local banks - as a demon-
stration of how far ahead of them we are.  Shortly thereafter, we
should look into benchmarking against "remote" (to GMA) credit
unions and banks.  I suspect that our new CEO has probably already
thought about this ... if not, I'm sure it'll just be a matter of
time ... :-)

You also mentioned hours of service.  The last issue of Network
stated that there would be Thursday evening and Saturday morning
hours, which I would guess we'll hear more about soon.  This would
be in the Maynard headquarters branch.  But, who's to say DCU can't
open branches in other locations for extended hours?  Given that
the extended hours are a success (and I would be *very* surprised
if they weren't) I would look into extended hours at other branches,
especially branches outside the GMA.  Since our other branches are
located on Digital property, there would be more involved in doing
this, but I'd like to believe this wouldn't be too difficult.

The whole "local vs. remote" issue comes up throughout your ques-
tions. I struggle with defining local and remote ... does local
mean GMA?  or anywhere fairly close to a branch?  Clearly, someone
a few hundred miles from the nearest branch needs some considera-
tions.  What about someone who works very close to a branch, but
lives, say, a 45-minute drive away?  This person clearly doesn't
have a "need" issue, but most certainly would have a "convenience"
issue from time to time.  And, as the closing of the branch in
D.C. shows, some members' "status" can change from local to
remote.  And I suspect we haven't seen the end of branch closings.

Long-term, I would like to think that the distinction between 
local and remote members (however these terms are defined) will
blur.  Home and electronic banking should be on DCU's agenda.  I
believe most financial services, banking and other, are moving
slowly but steadily in this direction.  DCU should pursue these
issues as well.

In the short-term, though, we still have different members with
different needs.  As part of a short-term solution, as a board
member I would propose 5 free ATM transactions per month for all
DCU members from any ATM machine.  I would not assume this to be
a solution in and of itself, but merely a minimum baseline from
which to make further evaluations.  Beyond that, I'm not sure what
the best solution (again, in the short term) is for remote members.
Maybe remote members should get 10 free ATM transactions from
anywhere, while local members should be set with 5 (assuming, of
course, reasonable definitions can be created for local and
remote).  What I would want to do is get those 5 free for every-
one, and see what happens - monitor usage patterns among members,
and the cost to DCU associated.  This information could help define
a more complete solution for this issue.


So, as a board member, I would push for 5 free ATM transactions
per month for all members, and immediately comparing our rates
against other credit unions as well as banks.  Then, I want to
see what happens for a bit - how well the free ATM transactions
service the needs of remote members, how much business the ex-
tended hours in Maynard generate, and the cost to DCU of each
of these projects.  I would look to extend hours at other 
branches, and am open to granting more free ATM transactions,
possibly to all members, pending results of the initial changes.
All the while, I would investigate the various issues in the
long-term effort to provide electronic services for home banking.

    Dan,
    
    I'm confused by your response.  You stated in note .3, "we must benchmark
    against and compete with other credit unions, not banks." and then in
    .4 you wrote "DCU needs to benchmark against local/GMA credit unions,
    as well as local banks".
    
    Could you elaborate...
    
    rj/31334
    
    

Rob, 

Nice catch, thanks for pointing it out.  What I *meant* to say, in the earlier
part is:

"we must benchmark against and compete with other credit unions, not just
 banks."


Basically, I think we should benchmark against other credit unions to show
that we're as good as any other, and continue to benchmark against a few of
the larger banks around, to continually show the extent to which we "kick the
snot out of them" ... 

hope this clarifies ...


Dan    

Dan, all three of you are very qualified.  I hope that you will run again in
the future, as we need people like you on the BoD.

Bob

I, too, would like to thank all those who voted for me.  Even if there weren't
enough of you :-)  And, I'd like to apologize for responding so late.  I left
immediately from the annual meeting for a desperately needed two-week vacation.


Thanks for the encouragement, Bob.  I do expect to make another run at this
someday.

Meantime, back to the Credit Appeals Committee.  Gotta "stay warm" in the
business of the DCU.