Driving better business decisions
Profitability reporting best practices at BCU
As Vernon Hills, Ill.-based BCU grew, management recognized a need to make profitability analysis a focal point to optimize decision-making and drive strategy. Founded in 1981, $2.8 billion BCU now has 45 branches and more than 200,000 members. While assessing the credit union’s future needs, management evaluated its legacy profitability assessment system and found that the platform was a “black box” that used methodologies and calculations not visible to management. A more robust software solution that offered a higher level of control, supported flexible reporting and streamlined operations was required.
After a detailed vetting process, the credit union’s management team selected and implemented Kaufman Hall’s Axiom, Profitability Management and Funds Transfer Pricing solutions to meet their technology needs.
Deeper Analysis Made Possible by Efficiency and Automation
In addition to implementing the new software, BCU’s management shifted profitability analysis responsibilities to the finance team and added a performance analyst role (this author’s current position). These changes enabled the institution to improve two primary bottlenecks: manual report creation and an inability to distribute the reports in a timely manner. The new processes and systems addressed both of these areas.
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