Customized Benchmarking Leads to Higher Credit Union Performance


Your credit union is unique. It has its own unique goals, financial constraints, and membership composition. It serves a unique geographical area, serves up a distinct palette of products and services, and individually evolves as times change and member needs change. Your credit union is unique. So why use generic guidelines and guide posts to lead your way forward? If you’re using generics, like industry averages, historical indexes, and peer achievements, to build your unique organization’s progress and performance benchmarks, you’re sure to end up in the thick of a wild goose chase, running after unattainable and inappropriate goals. So with benchmarking, you want to make sure it’s tailored to your credit union. For each credit union, you’re gonna have a different benchmark. There is no one-fits-all. We see a lot of times credit unions spending time looking at peers, looking at market index, looking at how I did versus last year. When, really, you should be taking a look at how your performance measures up against to a predetermined benchmark. It begins with understanding your balance sheet. Understanding how my loan assets perform. Understanding what my members’ deposits require me to do. What keeps the balance sheet performing? What keeps the balance sheet optimized under different rate environments, given the constraints of the liabilities and the exposures that we have already in the loan portfolio? To determine the appropriate benchmark for your credit union’s portfolio, first look at the makeup of a sound benchmark. It should contain the following characteristics: unambiguous, investable, measurable, appropriate, reflective of current opinions specified in advance, and accountable. It is only when a portfolio and its performance benchmark are built with the same goals and constraints in mind that the benchmark becomes appropriate and useful. So stop chasing indexes and averages. And stop measuring progress using someone else’s ruler. Let QuantyPhi help you build customized benchmarks that are fine-tuned and tailored to your credit union’s uniqueness. People at QuantyPhi make my job easier. We’ve experienced a better understanding of our current balance sheet. The people at QuantyPhi make my job easier because they know exactly what they’re doing. And they can help steer me in the right direction. They’re gonna look at the whole balance sheet, and really look at the total return, and how does that make a difference for your credit union. And the key thing that I really liked was the benchmarking and really having a goal for where we wanted our balance sheet to go. A benchmark is driven from what the balance sheet requires. QuantyPhi can help you set benchmarks that lead you step-by-step to performance success. Build your custom-tailored benchmarks with QuantyPhi balance sheet optimization services for credit unions.

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