800-809-2307
Four Letters. Infinite Potential.

Are unchecked expenses reducing your potential?

3 KEY AREAS WHERE EXPENSE MANAGEMENT CAN MAXIMIZE PERFORMANCE

By Mark Roe, National Director


As costs continue to rise for addressing increased regulatory expectations, upgrading technology, and maintaining convenient locations and a skilled work force, how can community banks and credit unions reign in expenses while continuing to maintain a competitive operation?

When you stop and think about it, reducing expenses continues to be a constant concern for most financial institutions. For many the obvious extras and non-essentials were discontinued long ago. Now, the concern for many is how to further reduce expenditures without sacrificing the quality of member services or missing out on new technologies and strategies that may be just over the horizon.

If your bank or credit union is looking for additional ways to reduce expenses – without jeopardizing your service quality – following are three areas where an unbiased operational review can discover potential savings, improved service and the opportunity for increased revenue that can provide a significant performance boost – both immediate and for the long-term.

1. Uncover your untapped potential
process improvement study – conducted by an expert in business process re engineering – will identify changes that, once implemented, can result in maximum productivity and business efficiency. An assessment includes a thorough review of your business structure, workflow, personnel, plus income and expenditures. 

Once areas for improvement have been identified, study results will provide recommended next steps – based on your unique situation – along with a road map that outlines the most effective ways to re-analyze your processes. You’ll no doubt see immediate improvements but also gain the ability to maintain long-term initiatives to exceed goals.

2. Shore up your staffing model 
As technology plays a larger role in how consumers access financial services, maintaining a right-sized staffing model can be challenging. Indeed, your account holders may be spending more time conducting their financial business on their computer or mobile phone. But when they have a question or need a service that requires human interaction, they expect and deserve the highest level of service.

staffing study can help to facilitate appropriate staffing levels and scheduling – both now and as your personnel needs fluctuate in the future. Findings can help you reduce overtime and redistribute human resources during peak and non-peak business hours. In some cases, when it leads to greater efficiency's', this might include replacing full-time staff with part-time resources – which can result in substantial cost savings. The money you save can fund new services, upgrade benefits or add personnel to an under-staffed department. Or, expense reductions can be returned straight to the bottom line. 

3. Take your service contracts off autopilot
When was the last time you reviewed your service contracts? I know this can be an overwhelming task – especially if no one on staff is knowledgeable about contract terms and cost structures. But allowing a legacy contract to renew without reviewing the costs and terms associated with the agreement is a sure way – in many, many cases – of letting potential savings, signing bonuses and improved service slip away.

An analysis of all your vendor contracts can likely uncover better savings and terms – well beyond what a vendor might have described to your institution as it’s “best and final” offer – on services you use every day, such as your debit card and credit card processing, card brand agreements with Visa, MasterCard and Discover, core data processing, internet banking and more. 

Then, you can decide which opportunities to pursue with a full-on contract negotiation. In the end, you have nothing to lose and potentially a great deal to gain in regards to better service and reduced expenses. 

In today’s highly competitive environment, just think about the great things you can do in your community with a fine-tuned organization and additional resources.


 

100% 12 months 2020 2020 vision 40 years abusive abusiveness Academy account holder account holder retention account holder strategies account holder strategies; growth strategies; account holders accountability Achieve achievements Advancements Advice Agreement alerts analysis Analytics announcement ask the expert Assistance ATMs Attendees attorneys attracting talent auto loans Automation B2B Balance Bank Bank of Pacific Banking banking services banks banks and credit unions batching Benefit best practices board governance board member board of directors Bob Layendecker bottom line branch equipment branch profitability branding Bryan Hanks budget budgets bundling business business culture business environment business practices business processes business strategies calendar career advice Career Goal CARES Act case studies Case Study CDC CEO CEO onboarding certainty CFPB Challenges change charitable Checklist Cher Cheryl Lawson Choose Chris Karstens claim clarity class action class-action lawsuit Classroom clients Cloud Cohron collections CommFirst Federal Credit Union commitment committed Communication communications communities community community banks Community Outreach Referral Program Competition Competitive Complaint Compliance compliance examinations compliance risks compliant condition conduct Conferences connection Consistency Consistent consultant Consultation consulting Consumer Consumer FInancial Protection Bureau consumer protection Consumer-focused Consumers Contingency Contingency Pricing contingency-based contingency-based fees Contract Contract Analysis Contract Negotiation contract negotiations contract negotiator Contract Optimizer Contract Renegotiations contract review contract staffing Contracts Convenience core processor contracts Cornerstone Credit Union League coronavirus corporate culture corporate governance costs Courtesy Pay COVID-19 CPE credits Credit Card credit card contracts credit card processing credit cards credit report Credit Union Credit Union Vendor Management credit unions crisis Crissandra Fry CSS culture customer customer experience customer service CUVM cyber security Damian Data Data Analytics database Deal debit debit card contracts Debt deceptive Decisions Demand Letters Department of Labor Deposit deposits Development Dick Miller digital directors Disclosed disclosures discounts Discussion Dodd-Frank Act dollars donation Donna Sumrall Dynamic economy Education efficiency studies election Email Emergencies Emergency employed employee employee retention employees EMV migration enforce enforcement Engagement Errors evaluation Evolve executive search Expectations Expense expense management expense reduction expenses Experience Expert expert negotiations expertise Experts expire Facilitators families FastTrack FDIC Federal Reserve Federal Reserve Board fee Feedback fees Financial Financial Institution financial institutions financial services financial stability Financial Worry FinTech Fixed limits Fixed-limit Floyd's Forum Forrester Free Analysis full disclosure Fully Fully Disclosed fully disclosed overdraft program funds Gen Z Generating Income generating leads generation Generation Z Gift global Goals governance government government agencies Grow Gym Halloween Hammond Happiness health hiring HKW Holiday Holidays Houston Area Food Bank Houston Livestock Show and Rodeo HR HR policies Hubur human capital human resources Implementation important Improved improved efficiencies improved results Inc. income income enhancement Industry Innovate Innovative Institution interests internet banking services interview strategies interview tips IT contracts Jackson Jai Jai Darden James Jamone Moore Jan Southern Jennifer Peoples Jennifer Simmons Jim Griffis Jimmy Nguyen JMFA JMFA Academy JMFA clients JMFA News JMFA Next Generation Overdraft Privilege Joe Marsh John Cohron John M. Floyd John M. Floyd & Associates judicial justification Kelli Silvernale NCUA Kelly Flynn Kennedy knowledge law lawsuits Lawyer leaders leadership Learn Learning Legal legal risk legislative lending program Lesson leverage Limit Limits Literacy litigation litigators lives loans local Long Term Long-Term lost revenue Maggie Thompson Maintenance manage Managed management Mark Roe marketing marketplace Mary Soergel Matrix Matrix-based measurable measurable results meeting Member Members Midwest Region Millennial Millennials mindset minimalism minimalist Mississippi Missouri Mobile Banking Model monetary Money Morrison & Foerster Partner mortgages Most Valuable Provider NAFCU NCUA negative balance Negative Settlement Negotiate negotiating contracts negotiator Net Operating Analysis New Decade new revenue New Year New Year's Next Generation JMFA Overdraft Privilege NOA Non-Compliant non-disclosed Non-Interest Income NSF NSF fees Obrea Poindexter OCC Officer Oliver Ireland onboarding Online Opportunities Opportunity Opt-In organization Organizational Health Outcomes outsourcing Overdraft overdraft compliance overdraft coverage overdraft fees overdraft practices Overdraft Privilege overdraft privilege program overdraft program Overdraft programs overdraft protection programs Overdraft Protection Service overdraft service overdraft services overdraft strategy overdrafts overdrawn Overspending pandemic Partner partnership Paul McFarland paycheck emergency payday loans Payments Pennsylvania performance personnel physical distancing plan planning Plus4 Credit Union podcast policies Policy POS Positive Swipe practice practices Press Release Privilege Manager CRM proactive procedure process process improvement Processing product profitability Productivity Products Professional Profitability Improvement Program Program Management programs prohibited project staffing Promotions Proposals Provider providers PwC Quality quantity Reactive reality Recruitment Services recruitment strategies reduce expenses refer referral Reg E regional director regulation Regulation E regulations regulators regulatory relationship Relationships remote Renegotiate Renewal Reporting Reputation resolutions Resources Results Retail Retaining Employees Retention Retirement revenue revenue enhancement review Richard Miller risk risks ROI Ron Jennings Roy Roy Seifert Rules Ryan Armstrong Sales Salesforce Satisfaction savings Scrutiny secrets Security senate Senior Relationship Manager service service agreements service contracts service delivery Services Sessions settlement shareholders Sheila Bridges Shopping social distancing Social Events social media Software Solution specialization Spending staff staff development staff spotlight staff training staffing staffing gaps staffing studies staffing study stakeholders standard Statistics stimulus payments Strategic Planning Strategies Strategy streamline Stressful succeed Success success factors Succession plan succession planning Support survey Susan Prell system talent team team members technology technology costs technology upgrades technology utilization temporary staff term Text Third-Party Expert third-party providers third-party vendor contracts third-party vendors threat three Tim Strandquist Time Tools Tracking Trainer training transaction Transparency Transparent Travel Treats trends Trey Martin Trust UDAAP uncertain times unemployment unfair updates Upgrades Value Variable Variable Limits Vendor vendor agreements vendor contract negotiations vendor contracts vendor management services vendor performance vendors video violation volunteer Walker Washington Washington Savings Bank Webinars weeks Westmoreland Community FCU Whitney & Company Wish list women work Workshops YouTube