Project Differentiation

Project Differentiation: A Statement of Commitment to Members

Credit unions today remain as unique as their history. Officially chartered as a financial "movement" in 1934, credit unions undertook the mission to bring economic democracy to "people of modest means" through the extension of affordable financial services.

In the past few years, credit unions have refocused attention on how they can best communicate to their members the difference between credit unions and other financial institutions. Successful marketing position has led many of them to examine how they incorporate the basic principles of credit unions into the everyday work of serving their members, and how to proactively communicate these activities to members, legislators, and consumers.

In 1998, CUNA's Board appointed a Project Differentiation Committee to reemphasize credit unions' philosophy and their commitment to members. The result? A "Statement of Commitment to Members" encouraging all credit unions to develop their own statements.

Introduction

What is a Statement of Commitment to Members? Why should you make the effort to create one for your credit union?

The "what is it?" answer is relatively simple. Think of the Statement as a "Philosophy Policy"-- similar in nature to your asset/liability management (ALM) policy, but focusing instead on the philosophical aspects of your operations.

The "why do it" answer is a little longer:

• Do it because it's a great way to capture the real value of belonging to your credit union.
• Do it to reinforce your commitment to credit union principles.
• Do it to evaluate how well you carry out your commitment to credit union principles--to document your successes as well as to find gaps that need to be filled.
• Do it because the information it yields can give you a new and exciting strategic marketing position.
• Do it because, once completed, it's great information to share with your board, your staff, your membership, your sponsor(s), and your community at large.
• Do it because it's a great tool for advocacy efforts.
• Do it because it's a great tool for education.
• Do it to put some focus back on our philosophical roots; always keep safety and soundness in mind, but never forget why credit unions exist and what our difference is.
• Do it to articulate our difference.

"It's time to show in a tangible way how credit unions practice what we preach."

Credit unions practice what we preach by:

• Providing service to all groups within our fields of membership;
• Providing consumer education;
• Keeping to our demographic principles and ensuring that diversity is embraced, not rejected;
• Supporting other credit unions and our movement as a whole;
• Participating in noncredit union cooperative activities; and
• Supporting our communities, through financial as well as in-kind donations.

Completing this exercise will be well worth your time. Winning H.R. 1151 (the Credit Union Membership Access Act of 1998) has given credit unions terrific visibility and an outstanding opportunity to differentiate ourselves from others in the financial service industry. This Statement of Commitment to Members can be your best tool for accomplishing that, and for taking your credit union into the next century--looking to the future, but keeping an eye on our past. (Click here for how-to instructions.)

Copyright © 2009 - Credit Union National Association, Inc.