Callahan & Associates has used 2Q 2018 industry data and the consulting firm’s Return of the Member (ROM) index to identify the credit unions in each state that return the most value to their members. The full list can be viewed here.
Developed by Callahan & Associates, ROM provides a comprehensive scoring system of member value that looks beyond the traditional safety and soundness issues covered by the NCUA’s CAMELscores and other regulators’ measures.
ROM captures all aspects of a members’ relationship with a credit union using a calculation that considers three core functions: Return to Savers (savings), Return to Borrowers (lending), and Member Service Usage (product usage).
“ROM was developed as a way to not only help executives explain variances in financial performance to their boards but also to offer a holistic solution to the question, ‘How do you measure member return?’” said Callahan director of industry analysis Sam Taft.
ROM can be calculated quarterly in Callahan’s Peer-to-Peer software andis typically used by credit unions to compare their performance in asset-based peer groups.Interested credit unions can request their ROM score here.
