Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Filene Sustainability report from colloquium available
MADISON, Wis. (5/20/11)--A Filene Research Institute report on credit union financial sustainability and listing six key factors for return on equity is now available. Controlling key variables is vital to staying on course, according to speakers at a Harvard University Colloquium on Credit Union Financial Sustainability, sponsored by the Filene Research Institute. The report is based on issues discussed at the colloquium held in October. The Colloquium featured presenters: Frances Frei, UPS Foundation professor of service management at Harvard Business School; John Lass, senior vice president at CUNA Mutual Group; Dorian Stone, partner at McKinsey & Co. and Filene research fellow; and Peter Tufano, Sylvan C. Coleman professor of financial management at Harvard Business School and Filene Research Fellow. In today’s financial turbulence caused by a combination of market and regulatory forces, the key to keeping credit unions thriving, the speakers said, is to understand and control the intricate interrelationships among six primary factors that feed into the overall return on equity equation:
* Interest rate spread; * Fee income; * Loan-loss provision; * Operating expense; * Asset turnover; and * Leverage factor.
The report points out that any company, including a credit union, can only grow in a way that keeps these factors in good correspondence. “A key takeaway is that you should at least understand that you cannot be great at everything and that relentlessly seeking out problems coincides with above-average rates of improvement,” said Mark Meyer, Filene CEO. Credit unions tend to operate less efficiently than banks of similar size, according to the report, which cites case studies illustrating how efficiency improvements contribute to the success of other organizations. “Credit unions should adapt the mindset that every dollar that they do not spend efficiently is a dollar that they may be taking out of their members’ pockets,” said George Hofheimer, Filene chief research officer. The colloquium was supported by Harvard University Employees CU, the Massachusetts and New Hampshire Credit Union Leagues, and the Credit Union Association of Rhode Island. For more information, use the link.
Other Resources

RSS





print
News Now LiveWire
What role are #creditunions playing in @gatesfoundation's 2030 vision of financial services? Read #NewsNow Monday
31 minutes ago
Consumers fear inaccurate info lingers on credit reports, says @FTC study Read @CUNA's News Now: http://t.co/RzNLMnaROO
2 hours ago
@PCUA has formed a @LinkedIn networking group for former bankers turned #creditunion employees.
2 hours ago
.@politico reports Democrats haven't picked the city yet, but their 2016 convention will be held the week of July 25.
2 hours ago
.@cuna, @DCUC_HQ urge @CFPB to exempt #CUs from changes to Military Lending Act rules cuz CUs aren't part of the targeted problem. NN Monday
4 hours ago