When Federal Reserve Board Chairman Ben Bernanke announced the latest round of Quantitative Easing, he indicated that the low interest environment would continue into mid-2015. This reality puts more pressure on credit unions to manage resources effectively in a highly competitive and low margin environment. To effectively compete in this environment, every credit union needs to assess the efficiency of its operations by reducing costs without impairing service, products, convenience, or pricing.
In a colloquium held by the Filene Research Institute at Harvard Business School's new i-lab project, Professor Dennis Campbell discussed a study he did of a credit union committed to a "member centric" planning process. This process starts with a compelling vision for your desired member experience before adopting your strategy for products and service delivery systems.
In an environment of increased pressure on earnings and decreased loan demand, it is critical for credit unions to increase efficiencies while reducing costs. These outcomes can be achieved by collaborating to pool scarce technology resources while focusing on the credit union's unique member needs. The next step is the combination of workflow/process optimization led by an internal team of employees to find ways to automate highly repetitive manual steps. Looking for further savings by asking members to switch to electronic statements should also be pursued.
There are resources and programs to assist you in these efforts. Contact Bonnie Doolin at the League at email@example.com for more information.