The Next Step: One Study on How the Pandemic is Changing Organizational Priorities
A colleague sent me this report from the IBM Institute of Business: “COVID-19 and Future Trending Insights”
It summaries five ‘epiphanies’ from multiple surveys of leading executives.
“Our research suggests five key discoveries for the post-pandemic business landscape offering new perspectives on digital transformation, the future of work, transparency, and sustainability. Together, they provide a playbook for proactive leaders who understand that old ways of working are gone.”
My take away for credit unions
The fourth epiphany is the one that could be most relevant to coops.
“Epiphany 4: Some will win. Some will lose. But few will do it alone.”
The conclusion on page 6 reads:
“Within sectors, expectations are growing that broader reach will help define winners. Our data also point to greater reliance on platform business models and partner networks, with 70 percent of executives planning significant partnering activity inside their industry and 57 percent looking outside. Either way, they expect such participation to grow more than 300 percent over the next two years compared to two years ago.”
The graph illustrating this executive intent is headed as follows:
“Businesses are partnering up
Executives say they plan to participate in platforms, ecosystems and partner networks significantly more in the future than before or during COVID-19.”
The strategic question for credit unions: Who are the “partner networks” that are critical to your future?
One CEO phrases the challenge this way: “As we face the future, you cannot make the mistake of dreaming about going it alone as the next step. The next step is always best served by your faith to go at the edge through collaboration.”
The Power of Data
Our Covid pandemic has generated a number of comments about how serious this is versus the seasonal return of flu.
As America’s pandemic deaths exceed 225,000, hopefully the chart below puts our current challenge in the proper perspective;
Also, make sure you get this year’s flu shot! We already have a vaccine for this virus.
Local Endorsements and Elections
A Birthday Observation
Timeless Wisdom When Serving Members in a Crisis
“Our movement does not exist because it was created from the top down. Rather, it was created from the bottom up . . . We did not tell Congress we wanted to be “safe and sound” institutions. We always knew that if we were lending to our members there was risk involved. Serving came first; safety and soundness was a means to the end of serving.”
– Ed Callahan, May 1999
Timeless Wisdom in “Troubled Times”
One Societal Benefit of the COVID Pandemic
Virtual Insight from Alexa
Amazon’s oral concierge speaker, Alexa, is a ready source for all kinds of factual information. I can ask the time, weather, latest news or sports scores, and even call up blog podcasts. Recently I added a subscription to play any kind of music imaginable, from “calming classical choruses” to John Denver or Taylor Swift’s entire catalogue.
As with all forms of virtual interaction, one presumes the creators are always striving to improve responsiveness through artificial intelligence (AI) programmed learning.
This means Alexa’s “knowledge” is more than being a verbal avatar for a Google inquiry. One can ask Alexa to tell jokes or ask what kind of day “she-it” is having. A seeming dialogue is underway.
Alexa and the Presidential Election
So, I decided to query whether Alexa had a preference in the upcoming election.
Q: Alexa, who will you vote for in the upcoming Presidential election?
A: Well frankly, I don’t think bots should influence elections.
I don’t know your reaction to this response. But the three words that struck me as significant were “I don’t think.” This is just a negative way of saying: “I think bots should not be. . .”
My query now is how or who is doing Alexa’s thinking?
Tracking FDIC’s Insured Deposit Trends in Your Market
Once per year using June 30 data, the FDIC publishes the total deposits per branch for every bank.
This Summary of Deposits (SOD) report includes an easily searchable database that enables any user to find the totals by any market segment: city, SMSA, county, ZIP code or state.
The tool can be accessed from the FDIC website.
Grand Rapids, MI, FDIC Insured Deposit Report for June 30, 2020
I tested the program by searching all FDIC branches for the city of Grand Rapids.
The repost lists the 22 FDIC insured institutions serving the market in order of deposits. These total $15.4 billion in the 102 branches in the city.
Fifth Third Bank, Ohio headquartered, leads with a 26.5% market share. Seven banks have only one branch in Grand Rapids, all with less than $100 million in deposits.
Where Can I Get Credit Union Data?
For almost a decade Callahan has combined this annual FDIC report with credit union data. This Branch Analyzer database shows all the branches in a selected market. More importantly the analysis provides two year trends in the defined market, changes in market share by institution and even maps showing the geographic layout for all the branches.
Credit unions do not file a branch deposit report like the FDIC. Callahan’s searchable program approximates the deposits at each credit union branch by dividing a credit union’s total shares at June 30 by its number of branches.
The latest edition of Branch Analyzer can be found here: https://www.callahan.com/market-analysis/