Gas stations, slushy machines & credit unions

First, this post is not about my vacation although there will be a reference to my vacation drive only for contextual purposes.

As I was driving down Highway 231 from Montgomery to Dothan, AL (only reference to my vacation) I began to notice something that struck me as odd. I was only on this highway for 90 miles but in that time I counted (about halfway down 231) over 15 abandon service stations plus another 5 or so that had been converted to tattoo parlors or flea market stands or fireworks shops. For those of you not old enough to remember, service stations were the precursor to today’s modern day mini-mart that also happens to sell gas. These were the service stations of the two or three bays to repair cars, full and self service pumps and vending machines for drinks and snacks. The owner was probably a mechanic, tow truck driver and a bit entrepreneurial.
What struck me was this thought? Why did these go out of business, the road is still highly traveled and people still need gas for their cars? That was evidenced by the large chain minimarts that were located every 15 miles in abundance. What changed?

This is what changed in my mind - consumer expectations/traveling behaviors and the reliability of cars. First, every stop for gas includes drinks and food. The fast food phenomena has made it okay for people to eat in the car when driving so why not get that hot dog and coke (Diet Pepsi if traveling with my friend Doug True.) while stopping for gas instead of making two stops. Secondly, cars are really more reliable now than ever before - onboard computers make it easier to diagnose problems before they happen thus eliminating car trouble on the road. That is why auto makers are continuing to give longer and longer warranty coverage. This is the Japanese effect on auto making. Better, longer lasting more reliable cars.

How does this all relate to credit unions? If we don’t change we could become the service stations I mentioned above. Ron Shevlin has a great post about branching and what I am saying is this even goes beyond that. What are outside forces that impact the way our members conduct financial transactions that could influence who they choose as a financial provider. Think about things like PayPal, ZOPA, Wesabe, Mint, Capital One’s Decoupled debit card, remote deposit capture for consumers using a scanner or cell phone, ordering pizza online, online chat medical advice, text based search, GPS devices, OnStar, and the list goes on and on. How are all of these financial and non-financial changes impacting what our members want from a financial institution and how they will use a financial institution in the future?

Maybe one day we will be talking about the importance of slushy machines in a branch near you!