Filene’s New Search Method Gives Credit Unions Personalized Information Versus Referrals

MADISON, Wisconsin., December 30, 2021 / PRNewswire / – Newly revealed data from a one-of-a-kind research project provides a benchmark for the scope of DCI’s efforts established in the credit union industry and the correlated impacts on business performance. Custom indexes provided to each participating organization offer a methodology that can transform the way EDI is performed not only in credit unions, but also in organizations across all industries.

Exploring how credit unions pursued DCI at the organizational level, the Filene Research Institute Fellow at the helm of Filene’s Center for Diversity, Equity and Inclusion, Dr. Quinette Roberson and his collaborator, researcher McKenzie Preston, identified a new paradigm for DCI implementation, which emphasizes the importance of enterprise-wide alignment and the transformative power of DCI to the value proposition of the credit union and the overall business model.

The results of the survey revealed that individual practices do not matter on their own. DCI policies and practices are best implemented in clusters or bundles, and an integrated strategic approach to DCI produces the most impact for organizations.

Specifically, this project found that three sets have more impact on the financial performance of credit unions than others: strategy, goals and monitoring.

Credit unions employing these packages were more correlated with higher return on assets and higher net income than credit unions that did not. Five additional training packs were found to support other desirable business goals not examined in the study, such as mission accomplishment and staff attraction and retention.

Custom indexes from participating organizations compare their individual responses to the credit union system as a whole and provide specific recommendations for next steps. These indices therefore also help credit unions take a more informed and strategic approach to advancing their DCI efforts.

“Research suggests that adopting this bundled approach – organizing DCI’s efforts across different sets of practices with performance measures – can offer credit unions a measurable impact on performance,” the president said. and CEO of UW Credit Union, Paul Kundert.

The project collected 304 system survey responses from 232 unique credit unions and system partners. This corresponds to a response rate of 4% for the entire credit union system, which is about 25% of all credit union assets.

Filene is preparing for the second edition of the DCI Credit Union Policy and Practice Survey, launching March 2022. Two new research hypotheses will be explored to build on the results of the 2021 project:

  • What other measures of success do the DCI practice sets affect, beyond standard measures of financial performance such as ROA and net income?
  • How do DCI’s bundles affect business performance – from improved internal operations, improved services or member messaging, both, or something else?

All credit unions and organizations in the system are invited to participate and will receive a personalized index similar to this sample. Contact Filene’s Senior Director of Research, Taylor C. Nelms at [email protected] for more information.

Generous support for the Center of Excellence for Diversity, Equity and Inclusion is provided by Advantis Credit Union, Alaska USA Federal Credit Union, Bethpage Federal Credit Union, Civic Federal Credit Union, Desert Financial Credit Union, Kinecta Federal Credit Union, LGFCU, SchoolsFirst Federal Credit Union, State Department Federal Credit Union, Suncoast Credit Union, UNFCU, University of Michigan Credit Union, UW Credit Union, and Visions Federal Credit Union.

About Filene: Filene Research Institute strengthens organizations through innovative research and incubation to improve the financial well-being of consumers. For more information visit filene.org and @fileneresearch.

FILEN CONTACT: Holly fearing | [email protected] | 608.661.3758

SOURCE Filene Research Institute

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