One CUSO predicts the four areas credit unions and banks will focus on in 2012 are profitability, efficiency, product and service mix and deeper member and customer relationships.
“On the surface things may appear calm, but underneath currents are swirling and business fundamentals and structures are being transformed rapidly,” according to Shazia Manus, CEO of The Members Group and author of the white paper “The Road Ahead: Four Very Important Competencies for Community FIs in 2012.
In the category of profitability, these tactics include evaluating new streams of revenue. With efficiency, Manus discusses elements such as branching and the technologies capable of lowering expenses.
The product and service mix, she believes, will evolve to include more “lifestyle bundles”, and deeper customer relationships, Manus writes, will stem from a larger commitment to cross-selling.
A former credit union CEO, Manus said “CEOs and their executive teams, boards and staff must begin the strategic visioning process by asking a tough question: Does our business model still work?”
The Des Moines, Iowa-based TMG is a card processing and payment solutions CUSO serving both credit unions and financial institutions. It is a wholly owned subsidiary of Affiliates Management Co., which is owned by Iowa credit unions and their members.
The TMG white paper can be downloaded online.