Embracing the Future of Financial Services: Why SCFCU is Diving into the Digital Asset Space
Written by Jed Meyer, President & CEO of St. Cloud Financial Credit Union
As the CEO of St. Cloud Financial Credit Union (SCFCU), I am often asked why we are willing to take the perceived risk of entering the crypto space, given the size of our institution. This question is the wrong question; while relevant, it misses the mark. The more pertinent question is, what risk are we taking by not understanding this space and the role we need to play in it? In the evolving landscape of financial services, our primary functions of acting as a centralized ledger and facilitating the movement and storage of value are being challenged by the rise of decentralized ledgers and digital assets. As we see a global trend towards monetized data being stored and moved in these decentralized systems, the entire credit union industry must pause and consider our future role.
Some people react to crypto with the belief that it will either take over completely or eventually disappear. The reality is more nuanced. As a CEO, it’s important to level-set and recognize that people are on different wavelengths regarding where this technology is at and where it’s heading. Whether it will be 20 percent or 80 percent of our new core business in the future of this space, both are material. Our goal at SCFCU is not to predict the future, but rather to prepare for it by building a foundation for those operating in the space, preparing in an agile way for the future needs of our members. In today’s fast-paced environment, consumers are more fleeting and less loyal, demanding instant gratification. Where we once had a year (or more) to launch new products and services, today it’s a matter of months. This rapid turnaround means we must be prepared to meet these demands by doing the work before new technologies, products, and services become material to our members or we risk becoming obsolete.
At SCFCU, our focus is on laying a strong foundation and painting a clear vision well before making any major asks. By addressing real objections and thoroughly understanding the challenges, we position ourselves to achieve success. This approach allows us to navigate the uncertainties of the digital asset space and other emerging technologies with confidence. We didn’t set out to revolutionize the credit union industry; our goal was to scale and grow to survive and thrive. The pace of change in our industry is immediate, with minimal margins for error. The narrative on these technologies has changed significantly in the past six months, highlighting how quickly things can evolve. To keep up, we must leverage our core strengths and trust partners who have done the work, like DaLand LLC CUSO, rather than relying solely on external vendors coming to us with a narrowly focused, boxed, bolt on solution.
When I was hired over 10 years ago, it was clear that thriving at our current size might not be sustainable. Our challenge is to perpetually deliver value while adapting to the lowest margin of error in history for a small scaling financial institution. By understanding and preparing for these changes, we can ensure our long-term relevance and survival. The mindset as an industry that got us here today will not get us there tomorrow. My hope is to convince other CEOs to take a step into the blockchain and digital asset space. The more I am in it, the clearer it becomes that this technology isn’t going away. I encourage others to conduct their own research and involve their highest experts. After decades of exploring this area (with over four years of deeper exploration), I am more confident than ever that our decision is grounded and am thankful that my team didn’t fall into the trap of assumptions, fears, or complacency.
For SCFCU, our competitive advantage lies in human connection and providing tangible value to our members. We can’t outspend larger institutions on talent or technology, but we can excel in creating meaningful relationships. This focus allows us to remain relevant and deliver on our promises, even as the industry evolves. If the industry doesn’t evolve as expected, having a flexible strategy ensures we can pivot when necessary. When the economy faces challenges, having a diversified approach allows us to reduce expenses without compromising our core values. By anticipating the future and making strategic investments today, we position ourselves to navigate changes in consumer expectations and the financial landscape.
I prefer taking deliberate risks rather than relying on someone else to come to the rescue for our future. In a revolutionized industry, our relevance in a decentralized ledger world is uncertain. However, by actively participating and making informed decisions, we increase our chances of survival, driving the outcome, and eventually thriving. The mindset shift from risk aversion to proactive engagement is crucial for our success. Collaboration in our industry is one of a kind and valuable. However, over-reliance on any strength can become a weakness. We must take ownership of our decisions, of navigating the future of our industry, and lead the way. As a former baseball player, I can tell you that if you are the last batter of the game, you may hit a walk-off or swing and miss, but the only thing you can't hold your head high about is if you don't swing. By taking action, we create opportunities for growth and leave a lasting legacy for our members.
The biggest risk is inaction. By embracing change and engaging with partners like DaLand LLC CUSO, we ensure that SCFCU is not left behind. The financial services industry is at a crossroads, we must not wait for others to pave the way, but rather see that it’s up to us to shape our future.
Let’s take the reins, innovate fearlessly, and demonstrate the leadership our members deserve. The future of our institutions depends on our willingness to act decisively now.