Many critical issues face
the financial services industry. The CEO Strategies
Group workshops will serve as a forum to discuss these
and many other topics related to improving performance.
The Overdraft Issue - The Fed has
imposed significant limits on overdraft programs
that will severely impact net income. These limits
will be effective July 1. Additionally, there has
been a significant amount of press as well as
proposed legislation regarding overdraft programs
and other non-interest income generating sources.
These threaten an important source of income for
many financial institutions. We have seen major
banks already alter their NSF programs to try to
limit the scope of legislation and position
themselves more effectively in the market. What
should your response be to these impending changes?
How do you get your members to “opt-in?” We will
discuss the implications of actual and proposed
legislation, and suggest strategies to strengthen
your non-interest income sources.
Growth in a No-Growth Environment -
The mindset of the consumer and small business owner
has fundamentally changed. Their attitudes towards
and expectations of financial service providers has
evolved. Consumer loan balances have declined across
the entire economy for the past year, an almost
unprecedented event. The implication is that growth
will require that an institution be more effective
in targeting and communication, because growth can
only be achieved by stealing market share from other
competitors. What are the steps you should be taking
now in order to benefit from this fundamental change
in behavior? RFG will present how consumers are
changing their financial behavior and the
implications this has for you in product design,
pricing and marketing.
Optimizing Operational Efficiency -
Operational efficiency is critical in any
environment, but especially in a recessionary
environment. RFG recently introduced an entirely new
set of operational metrics that explores the
effectiveness of your people, your branches, and
your processes. Additional refinements have been
made to this analysis. We will continue the
exploration of these results and examine the
strategies that the best performers engage in to
achieve operational excellence.
Emerging Markets, Channels and
Opportunities - A new generation is
emerging – Gen Y. This generation represents a
significant opportunity, but it is tremendously
different from previous generations in how it thinks
about finances, financial institutions, and money.
We will explore your Gen Y members in depth, looking
at their product usage at your credit union. What
level of relationship do they have with you? How
effective are we in cross-selling? What are the
preferred channels for service delivery? Equally
important, how does marketing need to evolve in
order to communicate effectively with this
generation? We will explore the evolving strategies
in social network marketing and examine approaches
that have worked as well as those that have failed.
The 2010 Challenge: Back to Basics -
2009 is behind us, but 2010 will present challenges
of its own – but opportunities as well. What are the
six steps that you can take to improve your success
in 2010?
The key element of this part of the program is the
audience discussion. High performers are
identified and tactics to improve growth and performance
are discussed in an open forum. While discussion is
voluntary, these sessions tend to result in a high level
of interaction among participants and provide new
insights, strategies, and tactics that participants are
able to implement at their own credit unions.
8:00 a.m. - 8:45 a.m.
Methodology Review
In this session, we’ll discuss
the methodology RFG employs to generate the results analyzed
throughout the day. The objective of this session is to
detail the sources of information used to calculate profit
at the account, individual and household level.
9:00 a.m. - 3:00 p.m.
General
Session
The general session covers the Board Report, Branch
Analysis, Member Segmentation and Product Management.
Board Report
This section of the day examines the overall performance of
the credit union from the perspective of growth, earnings,
efficiency, margin management, non-interest income and
relationship management. Performance ratios are reviewed,
trended and compared to other institutions in the CEO
Strategies program. The objectives of this session are to
address the following areas:
Operational Efficiency
– Which business lines are critical to improving
operational efficiency? How does your revenue and
expense per household compare to other institutions of
similar asset size?
Net-Interest Margin
Management – Can you improve net interest margins in
the current flat yield curve environment? What products
and strategies should be the focus to improve net
interest margins?
Non-Interest Income
Management – Are there new opportunities for
increasing non-interest income?
Relationship Management
– What role does member loyalty play in relationship
development? How do we best measure and improve member
loyalty?
Branch Analysis
Continuing on with RFG’s innovation in measuring branch
performance, RFG will measure the performance of your
branches in regard to the development of member
relationships. Branches will be evaluated on the basis of
the convenience they provide, their ability to generate new
growth and how well they broaden relationships with members.
The following questions will be
analyzed in this analysis:
Are you providing
sufficient branch-based convenience?
What aspects of the member
relationship are most significantly impacted by the
level of convenience you provide?
How well are individual
branches performing? This analysis provides a concise,
one-page analysis of each branch’s performance for you
to use with branch managers.
Member
Segmentation
A new analysis included in this section will examine the
relationships that are being developed as a result of the
sale of a checking account into a household. In this
section, we will examine the changes that occur over time
after a checking account is introduced into a member
household. How does the services per household ratio change?
Do we see significant changes in profitability? This section
will illustrate the value of selling checking and determine
whether you are sufficiently leveraging the checking
relationships that you have developed. We will then discuss
the latest innovations that we are seeing in the design and
marketing of checking accounts.
Product
Management
The Product Management discussion focuses on refining the
credit union’s product offerings to best meet the demands of
members while maintaining organizational profitability. Each
participating credit union receives a detailed analysis for
all deposit and loan products they offer. Product strengths
and weaknesses are discussed and then evaluated.
Some of the areas of discussion
will be:
New Account Detail –
New account generation over the previous six months is
analyzed.
• What is your new account growth in each product area?
Product Comparatives
– Each product line is examined for key strengths and
weaknesses.
• What is your penetration, average balances and account
profit? How do they compare with other institutions?
Tactical Actions –
What are the specific product design, pricing, and
promotional actions that should be taken in the key
product areas.
12:00 p.m. - 1:00 p.m.
Lunch
Lunch is provided.
Networking opportunities exist to discuss key
issues with management from other credit unions.
RFG is registered with the National Association of
State Boards of Accountancy (NASBA) as a sponsor of
continuing professional education of the National
Registry of CPE Sponsors.
