SCOTTSDALE, Ariz. — The next six months will keep credit unions focused on cost-cutting and efficiency improvements, which elevates the importance of using strong benchmarks before making adjustments, suggests Cornerstone Advisors.
The company expects its business to remain strong this year as more credit unions turn to the strategy and technology consultant for guidance on how to efficiently run operations. Cornerstone Principal Steve Williams said his company is suggesting that credit unions "take a hard look at their branch distribution system, either in terms of how many offices they are keeping open, or the staffing regimen in each location."
Williams emphasized how Cornerstone relies on industry benchmarks to help credit unions make the best decisions on staffing and other branch services to optimize delivery costs. "We are not believers in saying everyone has to cut 10%. How do we know that's the right decision for everyone? With benchmarks as our guide, we can make the appropriate recommendation for each branch around technology, process improvement, training, incentive plans, etc."
Williams said his company uses its own set of industry benchmarks called the Cornerstone Report for Credit Unions. Other opportunities Williams sees on the horizon for Cornerstone are helping CUs with better technology contract management, and consulting around mergers.
The economy should not change to a great degree to focus credit unions away from cost savings, said Williams, who downplayed recent predictions that the U.S. will return to stronger GDP in quarters three and four. "I still think there is some sluggishness in the economy, such as the forestalling of a lot of foreclosures. I don't think there are more shoes to drop, but I don't think we have any momentum coming out of this right now."
