JACKSONVILLE, Fla.-Counting on consumers dissatisfied with their banks to drive growth is no panacea, reminds Fidelity National Information Services (FIS). "Credit unions need to know their market segment, who their members are, and what got them where they are in the first place," offered Patricia Valentino, SVP-general manager. "Then focus on their delivery, convenience, and value of the services they offer those members."
To improve revenue,Valentino recommended improving loan-to-deposit ratios to maximize net interest margin. "That happens by sticking to your lending discipline. The tendency is for credit unions to think everyone is turning from banks and that they can get into business lending and pick up the slack. That's fine if this is one of your disciplines and you are good at it. If not, you better research before you get into those new markets..."
Operational efficiency requires questioning all operations and processes, Valentino said. "Maybe outsourcing versus having everything in-house. Is it time to look at different ways to offer a service?"
