Musings from the NAFCU CU Suite

Your Weekend Reading Pile from NAFCU

Written by Anthony Demangone, Powered by NAFCU

Perspective.

When Bank of America announced that it was ending a popular free checking account, I went on a Twitter spree. I found consumers who were frustrated, and I tweeted back that they should join a credit union. 

One Twitter user said that senior citizens should be exempt from BOA's changes. I tweeted the usual line - that they should join a credit union and do some banking without bankers. 

She quickly replied and agreed. But she said there was one specific reason why she was so angry at the change.

"Yes, credit unions are a great alternative! But for a senior citizen who is alone, has no transportation, or is even under care, the ability to switch may not be very easy." 

I hadn't thought of that. Like I said, perspective. 

Now, on to this week's reading pile.

• I love this letter that Dan Berger sent to a law firm demanding that they cease and desist threats of legal action regarding ADA and websites. (NAFCU)
• Schools are removing lockers. New schools don't have lockers as part of the plan. Why? Kids want everything with them, all the time. (WashPost)
• Whoa! Simply having your smartphone within your sight effectively lowers your IQ. (Behavioral Scientist)
• This flu season is no joke. (CDC)
• Never smooth enough. (Godin)
• The power of recurring transactions. (NAFCU Services Blog)
• JP Morgan is building 400 new branches. (HousingWire)
• Mick Mulvaney calls for "humility from CFPB. (NYT)
• The job market is getting tight. (Calculated Risk)
• Amazon's no-money, no-line store just went live. (Inc.)

 

Come join us in April.

Be Less Certain

Written by Anthony Demangone, Powered by NAFCU

 

The more I know, the more I realize I don't know. - Albert Einstein

 

I was scanning articles the other day, and I ran across this: Three Ways to Improve Your Decision Making. (HBR)

Now, if you talked to my wife, she would likely tell you that there are hundreds of ways to improve my decision making. So an article that whittles it down to three caught my attention.

Hey, decisions can be tough.

 

Number one on the list? Be less certain. This comes from the article.

Nobel-prize-winning psychologist Daniel Kahneman has said that overconfidence is the bias he’d eliminate first if he had a magic wand. It’s ubiquitous, particularly among men, the wealthy, and even experts. Overconfidence is not a universal phenomenon — it depends on factors including culture and personality — but the chances are good that you’re more confident about each step of the decision-making process than you ought to be.

So, the first rule of decision making is to just be less certain — about everything. Think choice A will lead to outcome B? It’s probably a bit less likely than you believe. Think outcome B is preferable to outcome C? You’re probably too confident about that as well.

Once you accept that you’re overconfident, you can revisit the logic of your decision. What else would you think about if you were less sure that A would cause B, or that B is preferable to C? Have you prepared for a dramatically different outcome than your expected one?

This is good advice. But here's the rub. Our brains seem to be wired to make us overconfident.

• There's confirmation bias. We have an idea in our mind, and we seek out data that confirms what we already believe. Subconsiously, we want our assumptions to be correct. So we look for things to make it so.
• We overvalue what we know. This is a theme of the book The Black Swan. Through our experiences, we gather knowledge. But we tend to overvalue that knowledge as it relates to the future. You've likely heard the phrase - fighting the last war. That's an example of this problem. We have a strategy that worked back then. But it isn't as relevant when facing new issues. 
• We undervalue what we don't know. Also from the same book is the idea that we undervalue what we don't know. (And some of the things we think we know, aren't true.) It is hard to place a finger on what you don't know. Because you don't know it. But don't underestimate what you don't know. When making decisions, remind yourself there is an unknown element of what you are examining.

Please take a moment to read the article. It is a good one. 

***

You might also be interested in:

• Decision fatigue.
• Making decisions off the grid.

Some NAFCU items of note:

• Tomorrow is the last day for early bird savings for our Spring Regulatory Compliance School. Sign up and save $200. Sign up 10 times, and save even more!
• Wouldn't it be nice to drink fine wine and chew the fat with CEOs from around the country? You bet it would.

BOA: Oops, they did it again...

Written by Anthony Demangone, Powered by NAFCU

I'm guessing that you've seen the headlines.

For Bank of America's Poorest Customers, Banking Just Got More Expensive. (Quartz) Here's a snippet from the story.

Bank of America this month eliminated its once cutting-edge eBanking program, completing a process it began in 2013. The program, first introduced in 2010, was part of an initiative to bring in customers who were amenable to a digital-only banking experience. For those who wanted IRL customer service and paper statements, the program had a $8.95 monthly fee. But this was waived for customers who agreed to not use a teller and complete all routine transactions digitally.

The new policy, which guts the free eBanking program and moves its customers to a standard Bank of America checking account (with a $12 monthly fee), has sparked unhappiness from current and previous users.The new $12 fee is waived for customers with a daily balance of at least $1,500 or at least one direct deposit of $250 a month, but many of Bank of America’s poorest customers won’t meet those requirements. A petition on Change.org that protests the change in policy has more than 45,000 signatures as of this writing.

As I'm writing this, I realize that I might not have the right headline. "Oops, they did it again."  That isn't fair to banks. The job of a bank is to make a profit for its shareholders. So when something isn't profitable enough, they'll make the change. That isn't a bad thing. It is the way every for-profit organization is run. It just isn't great for customers. 

Today's headlines are just another example of how credit unions are the right choice for America's consumers. Here's a link to a video that NAFCU produced as part of our 50th Anniversary that talks about the credit union difference. Feel free to use it in light of today's headlines 

 

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Be sure to sign up for NAFCU's Spring Regulatory Compliance School by this Friday to take advantage of the early bird rate.  The certification is the best in the business. Signing up by Friday will save you 200 clams. 

Your Weekend Reading Pile from NAFCU

Compiled by Anthony Demangone, Powered by NAFCU

I just returned from Orlando - the city of fun and service. We had a blast. My takeaway is that consumers will pay a good deal of money for things that they want. But they want those things to be just right. Consumer expectations just keep going up, because there's always someone willing to go the extra mile to meet those new expectations.

Oh, and the Hulk Roller Coaster is amazing (YouTube). 

Now, on to this week's reading pile.

• The ADA website litigation issue isn't going away anytime soon. I'm proud of the work my colleagues have done on this issue. (NAFCU ADA Website Litigation Page)
• Great advice. Make yourself useful. (TRB)
• Not every retail sector is suffering. Here are the winners and losers. (WaPost)
• Mind-blowing. The market for second-hand clothing is breaking down. (Bloomberg)
• 10 Banking Chanel Metrics that have dramatically changed in 10 years. (Gonzo)
• Freedom, fairness and equality. (Godin)
• A new Freakonomics CEO podcast. (FastCo)
• The housing market is struggling to keep up with millennial demand. (BI)
• 20 cities make the cut for Amazon's new headquarters. (BI)
• Craft beer is the happiest economic story in America. (The Atlantic)
• Leadership versus management. (Berger Leadership Blog)

Enjoy the weekend, everyone. Also, if you want yours truly to speak to your credit union via a WebEx in 2018, shoot me a line. The technology is fast, simple - and saves money!

 

 

Your Weekend Reading Pile, Courtesy of NAFCU

Compiled by Anthony Demangone, Powered by NAFCU

As you read this, I'll be heading south to Florida. I have an appointment to see a mouse. 

As this was my first time heading to Disney with the family, I sought out advice. The response was clear. I needed to focus on three things. 

1. Purchase fast passes.
2. Purchase fast passes
3. Ah, I forget what the third one was. 

Now, on to this week's reads!

• The top 100 credit unions on social media. (FB)
• Why do people really quit their job? (HBR)
• Nick Saban savored his latest national championship. For about 24 hours. (Inc.)
• First, de-escalate. A great read for those in member service. Aren't we all? (Godin)
• Fast food keeps pushing towards automation. (BI)
• Marijuana banking just got more complicated. (NAFCU Compliance)
• When can I expect your call? (ShepHyken)
• 10 things investors can expect in 2018. (Wealth of Common Sense)
• Hmm. Sort of a contrarian view. The future of retirement is brighter than ever. (Bloomberg)
• The future of work. (Politico)

Here are a few NAFCU items of note:

• Make sure your compliance team signs up to watch this free compliance update from the NAFCU compliance team. 
• Speaking of compliance, our award-winning compliance school is coming up in March. Make sure you have someone signed up!
• Finally, I'm looking forward to our CEOs and Senior Executives Conference in Napa. The Napa vineyards amazing were spared by the recent fires, and the wineries are all up and running. More details here.  Plus, I'm looking forward to Stag's Leap.

Have a great weekend!

Two-Thirds of Managers are Afraid of This...

Written by Anthony Demangone, Powered by NAFCU

A recent Havard Business Review article highlighted a scary survey result. 

Two-thirds of managers are afraid to have conversations with employees. Here are the results from HBR.

If this affects nearly 70% of managers, chances are that some folks in your shop have the same issue. 

The article gives some good advice on how to have good discussions with employees. But I think it also is important to remember the value of good, frank advice that you received.

I bet all of us can remember when someone gave us frank advice meant to help us. "Paul, you say 'ummm' too much when speaking." "Tina, you are getting the reputation of being late."  "Frank, you get defensive almost immediately when someone disagrees with you." 

I remember clearly when someone gave me fantastic advice.  It wasn't easy to hear, but it was very helpful. 

We all need frank feedback about our performance. All of us. And that means managers need to give it. 

Need a place to start? Look at this 2x2 feedback form.  I think it is a gem of a tool.

Enjoy your Thursday, everyone!

 

Your Weekend Reading Pile from NAFCU

Written by Anthony Demangone, Powered by NAFCU - your Washington Watchdog!

It's cold outside. Very cold. And the weatherman said it will be cold for quite some time. I don't mind the cold in December. But it isn't December anymore. 

Bring on Spring.

Here are your weekly reads. Enjoy, Happy New Year, and thanks for all you do.

• Here's what your Washington Watchdog will fight for in 2018. - NAFCU's 2018 Advocacy Priorities. (NAFCU)
• Whoa. DOJ rescinds marijuana enforcement directives. (NAFCU)
• When things don't make any sense. (Wealth of Common Sense)
• Five things to focus on for 2018. (John Spence)
• Do you really want it? (Moery)
• The tax overhaul has slowed Manhattan's real estate market. (BI)
• A very beautiful poem. Its title is Latin for "Desired Things." (mwkworks)
• I may not agree with everything, but very interesting. The 99 best things that happened in 2017. (Quartz)
• We don't do rabbits. (Godin)
• How a traditional Italian olive mill works. I love learning how things I use are made. (BI)
• JPMorgan cracked the code for millennial credit cards with this product. (BI)
• NCUA's 2018 Supervisory Priorities. (NAFCU Compliance Blog)
• I always crack up at the review of products. This marketing campaign pokes fun of it. Very clever. (Youtube)
• Here come the 2018 minimum wage pay raises. (Ritholtz)

 

 

Your Washington Watchdogs

 

 

Google Trends

Written by Anthony Demangone, Powered by NAFCU

I love me some good data. Anectodal and experiential information are fine, but you can't argue with actual data.

That's why I love Google Trends. 

What are people searching for on Google? When are people searching for the term "credit card rates" or "credit union?"

You can find all of that on Google Trends. In honor of the National Championship football team of the University of Central Florida, let's take a look at the Sunshine State. 

Here are the results of who searched for "credit union" from Florida in 2017.

• Late July/Early August was the peak time for that search term. 
• Early September and late December were the lowest times. 
• Folks in Panama City seem to really like credit unions. 

 

Heat map of where folks are searching for "credit union"

You can do searches for "credit card." Your credit union's name. Your competitor's name. National searches. And state searches. 

It is pretty powerful stuff. 

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Reminder: you have until COB tomorrow to take advantage of NAFCU's Holiday promotion on all of our 2018 events. Save $300! You can use it as many times and for as many people as possible. If you aren't sure who will attend, no worries. Sign up. We can help transfer the registration later if need be. More details here. 

Resolutions

Written by Anthony Demangome, Powered by NAFCU

I like resolutions.

Some don't, and I understand why. A resolution can seem hollow, especially when you see people make them year-after-year, and fall short. 

But I'll see the glass as half-full.

Resolutions to me are a reminder that we're in control of our life. Now, we're not in control of everything. Luck pops in every now and then, in both good and bad forms. 

But we do control a lot. Much more than we think at times.

So here's to resolutions. Here's to grabbing the steering wheel of life and pointing it in your direction. 

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Here's hoping our paths cross in 2018. This is the LAST week of NAFCU's Holiday promotion on our 2018 events. Save $300 when you use code HOLIDAY on any of NAFCU’s 2018 conferences and online training. It’s a great way to save big on NAFCU training: you can use code HOLIDAY with as many conferences, online training products, and employees as you like!