Profitability systems deployed at financial institutions, whether publicly or privately owned, are designed with one primary goal: maximize the profitability of every customer to maximize the return to the owner(s) and shareholders. However, profitability systems deployed at Credit Unions focus on creating earnings to sustain the institution in support of its mission to serve and create value for its member owners. While the core profitability components are the same across all types of financial institutions, the “how” and “why” credit unions chose to deploy profitability systems is often a fluid mix of both when aligned with their mission and strategic goals.
Prioritizing member value as geographic growth continues, meeting member’s financial needs while providing excellent service, and delivering the latest technology and innovation are expensive and difficult to balance. Proper configuration and usage of the core components of the profitability system (margin, costs, and capital) is the “how”. Providing the information required to achieving long term member value is the “why”. Join this session to learn about succeeding with both.
- Better understand the importance of profitability analysis for credit unions, especially in today’s environment.
- Review the components of the profitability measurement process, along with best practice suggestions for each.
- Considerations to take profitability analysis to the next level to add more value for the credit union and its members.
