THERE is no arguing that associations and business organizations learn from each other on management practices and models. For example, some businesses have adopted the associations’ membership-like activities while some associations have undertaken business-like revenue generating ventures.
Coming from a banking background, I ‘m sharing some banking terms that may create ideas for associations:
1. KYC Know Your Customer). KYC requires that financial institutions make an effort to verify the identity, suitability, and risks involved with maintaining a business relationship. Tweaking KYC into KYM (Know Your Member) in the association context, not from the risk perspective, but for member engagement may be worth exploring. Creating member personas (refer to my post here entitled, “Association Member Personas,” February 21, 2018 https://businessmirror.com.ph/2018/02/21/association-member-personas/) is an example of KYM.
2. Relationship Manager. The position of relationship manager has been made permanent in most banks and the job description, in general, includes building client rapport, giving personalized advice, and providing quick responses to inquiries. Associations are in the relationship-building business and can learn from what banks have been doing in this area.
3. Private banking. This consists of personalized financial services and products offered to high net-worth clients of a bank and include a wide range of wealth management services provided under one roof. Associations can adopt this concept with a twist, having a one-stop hub for premium members, for example.
4. Banking day. A business day during which an office of a bank is open to the public for substantially all of its banking functions. In like manner, associations may organize, for example, an “Association Day.”
5. Grace period. An amount of time when a borrower can delay making a payment on a loan or credit card account without paying a penalty or incurring interest charges. An association, for instance, can offer an extended time for members to pay their annual membership dues.
6. Mobile banking. Refers to availing banking services with the help of a mobile phone which associations can turn into member services via mobile phone apps or, in a larger context, an online community where members can access many more services.
7. Lender of last resort. This is when a financial institution from which one can turn to for urgently need funds has already exhausted all other options. An association can be a service provider of last resort or a “go-to” place for its members needing assistance to grow their business in the case of a trade association, or further develop their career in case of a professional association.
Postscript: I actually tried most of these banking-related ideas with good results when I was leading an association of development banks. Even today, I find them handy in my new job managing a sustainability advocacy organization. In the end, adopting banking business practices in associations may be a good idea for you.
Octavio B. Peralta is currently the executive director of the Global Compact Network Philippines and founder and volunteer CEO of the Philippine Council of Associations and Association Executives, the “association of associations.” The PCAAE is holding its Associations Summit 10 (AS10) on November 23 and 24, 2022. E-mail: bobby@pcaae.org.