The first quarter of the year is an opportunity for credit unions to measure early successes and determine whether operational adjustments must be made to ensure the institution will be able to meet strategic goals. Successful business strategies are data-driven and effective performance measurement is the key to unlocking insights that are most relevant to a financial cooperative. With the right combination of metrics, credit unions will be able to identify early indicators of performance so that executives can assess whether strategic adjustments must be made to keep a business on track.
These three metrics will introduce how credit unions benchmark performance in the beginning of the year and how these measures are used to drive strategic decisions:
No. 1: Share Growth
In an industry of tightening liquidity, share growth is crucial to a credit union’s ability to attract deposits that will be used to serve their growing membership base. Share growth, the period-to-period change of total share balances, is a major factor in determining whether a credit union can continue to make loans at the pace the market demands. Therefore, it is important to monitor this ratio relative to marketing efforts for deposit products.
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