Getting Better Results in Today’s Environment Requires a More Systematic Approach

By John M. Floyd, Chairman and CEO, John M. Floyd & Associates

As credit unions continue to deal with declining net interest margins and increased regulatory restrictions on non-interest income opportunities, it’s no wonder that many continue to struggle to stay competitive. Throughout the economic downturn, these institutions have done everything they can to increase revenue and reduce expenses. Yet, the number of troubled institutions remains high.

In fact, according to NAFCU and CUNA statistics, as of September 2012, the number of federally-insured credit unions dropped below 7,000, mostly due to consolidations.

And while the economy is improving, many obstacles are expected to persist into the New Year. As this uncertainty continues, credit unions need to take a serious look at their overall organization to find ways to improve performance and reduce expenses—from the executive suite to back-office operations and every branch facility—without making drastic cuts to staffing and services that could damage member service levels.

Re-sizing your organization’s footprint is the first step

Whether your credit union is just getting started on a plan to re-engineer the organization or is well on its way to completing your list of cost-cutting and revenue-generating efforts, if you’re not getting optimal results it may be time to take a different approach to remain viable in the future.

Through our profit improvement consulting practice, JMFA has the expertise to help you take a look at your organization from all different angles in order to find the best approach to reaching your performance goals in the ever-competitive marketplace.

Start by thinking strategically

Our experts can help you identify what you want to be and who you want to serve. We’ll then help you develop core competencies to put you in the best position to meet your objectives and uncover issues – including product offerings, expense management, staffing and corporate governance – that may be getting in the way of reaching those goals.

Analyze how you stack up to the competition

By taking a look at how your credit union compares with your competition, we can help you to determine if your products and services are meeting the demands of your target audiences. Plus, we’ll make sure that your fees are competitive.

Streamline processes and implement best practices

We’ll take a look at your current operating structure – from technology to transaction volume, processes, staffing and branch locations – to help you find ways to utilize your resources more effectively. By using every piece of data available, we can help you to work more efficiently and avoid making changes that could diminish the service you provide.

The Results: Overall efficiency leads to lower expenses and improved performance

Once the process is complete, you will have a road map to guide you on how to lower your net operating costs, improve your revenue opportunities and provide your members with valuable financial services. Plus, our consultants will continue to work with your staff until the accepted recommendations have been implemented; giving them the knowledge and confidence they need to work more efficiently and effectively.

About JMFA

JMFA is a leading provider of profitability and performance-improvement consulting. For more than 30 years, JMFA has been recognized as one of the most trusted names in the industry, helping financial institutions enhance their bottom line with programs like JMFA Overdraft Privilege®. JMFA is also recognized for earnings enhancement and expense control programs, training, executive placement, account acquisition programs as well as product, service, pricing and technology-improvement consulting. Simply stated, JMFA’s programs and services are designed to increase income or reduce expenses. JMFA is proud to be a preferred provider among many industry groups. To learn more about JMFA, please call 800-809-2307, or visit our website at


Strategic Link is the NWCUA’s wholly-owned service corporation, providing the Association’s member credit unions with exclusive high-quality, competitively-priced products and discounted services. To learn more about how the Association’s partnership with John M. Floyd & Associates can benefit your credit union, contact Director of Strategic Partnerships Craig Reed: 206.340.4789,

Posted in Compliance News, Compliance News.