Is Your Financial Engine Running at Peak Performance?

It’s unlikely you’ve ever thought of your credit union as a financial factory, as the comparison might seem a bit cold and impersonal. After all, credit unions are about “People Helping People” — personalized service is baked right into your DNA. But experts at AdvantEdge Digital, a CUNA Mutual Group company, say this mentality can actually help you more easily improve the financial lives of your members.

In the financial factory, member deposits and savings are the raw material. They are repackaged as banking services, checking accounts, cards, and loans. Along the way, the factory procures additional inputs in the form of non-interest income, generally cultivated during the manufacturing process.

Running the financial factory requires staff, locations, utilities, and equipment. The financial factory must also create a contingency plan for providing services against consumers that fail to pay for the goods and services they received.

Today’s financial factory runs 24 hours a day, seven days a week. It services banking transactions and continuously accrues interest revenue income and expense.

At the heart of the financial factory is the financial engine, which represents the balance between high interest-bearing loans and low-interest or dividend-paying relationship shares. That balance determines the financial horsepower of your central engine, and ultimately, the capability your credit union has to be a change agent within its community.

It’s difficult to make a difference when you are struggling to make ends meet. Doing well reframes your mindset. Instead of focusing solely on survival, your thoughts are trained on generosity and purpose.

As credit union CFOs help guide colleagues and board directors through the different phases of the economy, maintaining financial excellence will enable greater flexibility, creativity, and purpose-driven decision making.

One major way to keep the financial engine running at peak efficiency? Automation.

Better business intelligence and financial data analytics puts CFOs and their credit unions in a much-improved position to take the action on key insights that lead to better performance. But until recently, the promise of data analytics to make that process easier seemed out of reach to all but the largest organizations.

That left many credit unions manually gathering, normalizing, and analyzing the data using multiple spreadsheets, different data sources, with some data more than 30 days old. This results in lower efficiency, reduced accuracy, and a lack of timely information for making decisions. Monthly board reports are a perfect example of such “rear-view-mirror” information.

Find out how AdvantEdge Digital has changed that, automating financial performance management for credit unions of all sizes.

Join a 45-minute discussion Tuesday, June 15, at 11 a.m. PDT, and walk away with greater knowledge on how to:

• Get daily reporting of management information traditionally only available following month-end close;
• Increase efficiency by managing financial and loan/deposit performance daily;
• Accelerate financial growth by tracking and analyzing assets and profitability by branch;
• Mitigate risk by managing delinquent loan analysis, over time and against peers; and
• Drive innovation quickly with an easy-to-implement, scalable, cloud-native solution.

To learn more about how CUNA Mutual Group and AdvantEdge Analytics can help your credit union, please contact the Strategic Link team.

Posted in GoWest Solutions, Industry Insight.