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.
Generating Household and Loan
Balance Growth
Economic conditions will continue to present
significant challenges to growth for the next
several years. In light of this, RFG will discuss
how credit unions can grow their share of the
member’s wallet and steal market share from
competitors.
The Credit Union Business
Model Transformation
The financial services delivery model is changing,
and we are moving towards a self-service
environment. Viability and success will depend upon
a significant business model transformation. RFG
will explore the evolving delivery channels, both
new and old, and what credit unions can do to
continue meeting the needs of their diverse member
base.
The Impact of Re-Regulation
Re-Regulation is gaining speed, and will continue to
threaten non-interest income and add costs. RFG will
explore the major implications of recent
legislation, and what credit unions can do to combat
the pressured earnings and rising expenses.
Effective Pricing for
Member Profitability
RFG will discuss pricing strategies, with a focus on
limiting the exposure of the cost of funds without
alienating loyal members. We will also dissect the
profitability impact of two more years of
historically low interest rates as suggested by the
Federal Reserve, and what factors should be examined
in establishing a deposit pricing strategy.
Building Relationships to
Drive Efficiency
Operational efficiency continues to be a pressing
topic for credit unions facing low margins, high
delinquencies, and lower levels of non-interest
income. RFG will discuss the traits and different
efficiency models employed by the most efficient
credit unions, and how you can apply these lessons
to your credit union.
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.
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.
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.
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.
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