800-809-2307
Four Letters. Infinite Potential.

"Self-Improvement" Projects: The Key to Enhancing Long-Term Growth

RE-ENGINEERING YOUR INSTITUTION’S FOUNDATION CAN ENHANCE LONG-TERM GROWTH

By Ron Jennings, Executive Vice President


Needless to say, today’s business environment for financial institutions provides its share of opportunities and challenges. On the one hand, new technologies provide innovative service options that can improve or increase your touch points with account holders. However, on-going concerns regarding shrinking margins, potential interest rate risk, restrictions on non-interest income generation and compliance issues surrounding mortgage lending, cybersecurity, consumer fraud, BSA/AML, UDAAP and third-party relationships can leave an institution on unstable ground … especially if organizational and strategic foundations are weak or outdated.

In a recent Deloitte report on trends for global human capital, 92 percent of companies believe that redesigning their organization is important to their on-going success. For financial institutions, this is especially critical as consumer interest in mobile banking continues to increase and competition from alternative financial services providers is on the rise. 

Is it time for an organizational makeover?

You may think your institution is running efficiently and providing account holders with the services they need. But when was the last time you took a thorough assessment of your existing services, processes, workflow, personnel, and income and expenditures to determine if:

     • your product offerings are profitable and match account holder needs;
     • your staffing plan provides the skillset necessary to meet your service goals;
     • your existing processes allow employees to work efficiently and effectively;
     • your products meet compliance expectations; and
     • your vendor contracts are providing the best value and service possible?   

To be effective, an organizational review should include a line-by-line examination of every department – from the executive suite to the back office and every branch location – to identify the myriad ways to utilize your resources more efficiently. And while that may seem overwhelming, the results can help to uncover any structural weaknesses, identify ways to substantially improve your efficiency ratio, and update and streamline processes that will lead to increased employee performance that can give you a competitive boost.

Begin with a thorough review and analysis

An assessment of your existing product mix, transaction volume and patterns can identify where your account holders are spending their time – online or in your branches – and help to clarify where you should be spending your resources to best meet their needs. This review will look at such issues as product and account profitability, and relationship pricing. Plus, a compliance review can help to insure that your current overdraft program is in line with all regulatory expectations and providing your account holders with a reliable tool for maintaining their financial stability.

A competitive analysis will reveal how your products and fees compare with other institutions in the marketplace. With this information in hand, you can determine if there is a need to provide value-added services or make adjustments to your fees in order to optimize non-interest income and remain competitive.

Revisit your organizational structure
Do your operational practices support your employees’ ability to do their jobs well? If your institution is still operating under a management structure that requires individuals or small groups to report up through specific managers in silos throughout the organization, you are missing out on the value of collective knowledge and expertise. When employees work in more flattened, cross-functional action teams, they can address problems by seeing the whole organizational picture, instead of just from one department’s perspective. This allows employees to share information and combine their skills to propel the institution toward mutually-shared goals.

A staffing study can help you determine how to utilize your staff resources most effectively to provide excellent service and maintain an efficient, enjoyable work environment. 

Take another look at your expenses
While you may have been focused on trimming all of the extras out of the budget during the economic downturn, you could still be paying too much for your monthly service contracts. For example, as the industry’s reliance on technology expands, spending on systems and software to enhance mobile services and data security is expected to increase. However, there are economies of scale – as well as savings and incentives – that you might be missing if you allow vendor contracts to automatically renew without renegotiating the terms. Remember, your vendors are not required or likely to offer you a better deal if you don’t ask for it.

A review of your existing contracts – and renegotiation with your vendors – can result in better pricing and/or contract terms on services you use every day. In many cases, results include immediate savings – thanks to retroactive cost reductions from your providers – plus improved service and better vendor relationships.

Develop a blueprint to support long-term growth
In today’s uncertain environment, growth is essential for long-term success.  An on-going commitment to process improvement can provide your institution with maximum productivity and business efficiencies while increasing revenue and lowering operating costs. If you don’t have the time to lead the process, or possess the internal expertise or objectivity to identify and implement the changes necessary, an expert in process re-engineering can identify areas where change is necessary and help position the institution in the right direction to grow.


 

Also featured on CU Insight 

 

 

100% 12 months 14 years 20 years 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 agreements alerts Americans analysis analytic Analytics announcement ask the expert Assistance ATMs Attendees attorneys attracting talent auto loans Automation awareness B2B Balance Bank Bank of Pacific Banking banking services banks banks and credit unions batching Benefit best practices bills board governance board member board of directors Bob Layendecker bottom line branch equipment branch profitability brand loyalty branding Bryan Hanks budget budgets bundling business business culture business environment business practices business processes business strategies calendar candy card processing cardholders career advice Career Goal CARES Act caring case studies Case Study cash CDC CEO CEO onboarding certainty CFPB Challenges change charitable Checklist Cher Cheryl Lawson Choose Chris Karstens civil litigation 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 competitors Complaint Compliance compliance examinations compliance risks compliant condition conduct Conferences confidence connection Consistency Consistent consultant Consultation consultative consulting Consumer Consumer FInancial Protection Bureau consumer protection Consumer-focused Consumers Contactless Contactless cards 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 cost costs Courtesy Pay coverage 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 customers CUVM cyber security Damian Data Data Analytics database Deal debit debit card contracts debit cards Debt deceptive Decisions Demand Letters Department of Labor Deposit deposits Development Dick Miller digital digital wallet directors Disclosed disclosure disclosures discounts Discussion Dodd-Frank Act dollars donation Donna Sumrall Dynamic earnings Economic economic recovery economy Education efficiency studies election Email Emergencies Emergency employed employee employee retention employees EMV migration enchancing productivity enforce enforcement Engagement environment Errors evaluation Evolve examiners executive search Expectations Expense expense management expense reduction expenses Experience Experiences Expert expert negotiations expertise Experts expire Facilitators families family FastTrack FDIC Federal Reserve Federal Reserve Board fee Feedback fees Field Consultant Financial Financial Institution financial institutions financial integrity financial security financial services financial stability Financial Worry FinTech fit Fixed limits Fixed-limit Floyd's Forum Forrester Franklin First Federal Credit Union Free Analysis fright full disclosure Fully Fully Disclosed fully disclosed overdraft program fund funds future Gen Z Generating Income generating leads generation Generation Z Gift Gil Johnson global Goals governance government government agencies Greenwood Credit Union Grow growth guidance Gym Halloween Hammond Happiness health Heartland Tri-State Bank hiring HKW Holiday Holidays Houston Area Food Bank Houston Livestock Show and Rodeo HR HR policies Hubur human capital human resources impact Implementation implementing important Improved improved efficiencies improved results improvements Inc. incentives income income enhancement Industry industry partners Innovate Innovative in-person Institution interest rates interests internet banking services interview strategies interview tips IT contracts Jackson Jai Jai Darden James Jamone Moore Jan Southern Jennifer Peoples Jennifer Simmons Jessica Pickett Jim Griffis Jimmy Nguyen JMFA JMFA Academy JMFA clients JMFA News JMFA Next Generation Overdraft Privilege JMFA team 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 management experience Mark Roe marketing marketplace Mary Soergel MasterCard matrices Matrix Matrix-based measurable measurable results meeting Member Members mergers Midwest Region Millennial Millennials mindset minimalism minimalist Mississippi Missouri mobile Mobile Banking mobile phone app Model monetary Money monitoring Morrison & Foerster Partner mortgages Most Valuable Provider NAFCU NCUA Needs negative balance Negative Settlement Negotiate Negotiating 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 Non-Interest Income North Carolina NSF NSF fees Obrea Poindexter OCC Officer Oliver Ireland onboarding Online operational operations 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 overdraft protection programs Overdraft Protection Service overdraft service overdraft services overdraft strategy overdrafts overdrawn Overspending pandemic Part 2 Partner partnership Paul McFarland paycheck emergency payday loans payment cards Payments Penalties Pennsylvania performance personnel physical distancing plan planning plug and play Plus4 Credit Union podcast Podcasts policies policies and procedures Policy POS POS transaction Positive Swipe post-pandemic practice practices Press Release Privilege Manager CRM proactive problem-solving procedure Procedures 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 Reassess recovery Recruitment Services recruitment strategies reduce expenses refer referral refunds Reg E regional director regulation Regulation E regulations regulators regulatory regulatory consent orders relationship Relationships reliability remote Renegotiate Renewal Reporting Reputation resolutions Resources Results Retail retail operations Retaining Employees Retention Retirement revenue revenue enhancement review Richard Miller risk risks ROI Ron Jennings Roy Roy Seifert Rules Ryan Armstrong safety Sales Salesforce Satisfaction savings scary 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 socially distanced Software Solution South Carolina specialization speed Spending staff staff development staff spotlight staff training staffing staffing gaps staffing studies staffing study stakeholders standard Statistics stimulus payments Strategic Planning strategic vision Strategies Strategy streamline Stressful study succeed Success success factors successful Succession plan succession planning Support survey Susan Prell system talent team team members technology technology costs technology upgrades technology utilization temporary staff term terms Text Third-Party Expert third-party providers third-party vendor contracts third-party vendors threat three Tim Strandquist Time Tools Tools and Resources Tracking Trainer training transaction transactions Transparency Transparent Travel Treats trend trends Trey Martin Trust turnkey UDAAP uncertain times uncertainty underperforming undisclosed unemployment unfair updates upfront Upgrades Value Variable Variable Limits Vendor vendor agreements vendor contract negotiations vendor contracts vendor management services vendor performance vendors video violation Virginia VISA volunteer waives Walker Washington Washington D.C. Washington Savings Bank Webinars weeks well-rounded Westmoreland Community FCU Whitney & Company Wish list women work work ethic Workshops YouTube