DALLAS, Sept. 20, 2007 (PRIME NEWSWIRE) -- Over the past 10 years credit union net interest margins have decreased significantly. Chris Fisher, Strategic Sales Manager for John M. Floyd and Associates (JMFA), shared with executives at the IntegraSys (www.integrasys.fiserv.com) annual client conference, Vision 2007 a number of ways in which they can continue to stay competitive in the current market despite this pressure.
With net interest margins at historical lows, operating costs increasing and fierce competition from banks and new entrants, the development of non-interest revenue is crucial in order to succeed, according to Fisher. Net interest margins have eroded, forcing credit unions to turn to other sources of earnings to maintain profitability. The new business model for credit unions includes a variety of methods to:
* increase non-interest income;
* lower operating costs; and
* grow member and product penetration.
"Credit unions can become more competitive by using this new business model and still staying true to the credit union philosophies. Non-interest income is an effective way for credit unions to help offset declining net interest margin and improve their financial health," said Fisher.
Fisher outlined a number of solutions credit union executives could employ to enhance their credit union's financial and market position. He also introduced a tool that can help executives answer some key questions to help guide their efforts, including:
* How can we grade our performance in the areas of non-interest
income and cost efficiencies?
* How do we determine where we need the most improvement?
* How does our performance compare with our peers and our
competitors?
* What can we do to improve our performance?
Fisher concluded his remarks by encouraging all participants to begin a concerted effort to develop a plan to increase non-interest income, lower operating costs and grow in order to compete effectively in the ever changing financial services marketplace.
Credit union executives interested in receiving a free Net Operating Analysis -- a valuable tool to use in this challenging environment -- as discussed by Fisher during his presentation, should visit www.jmfa.com/noa.aspx. For a copy of the presentation, contact him directly at Chris.Fisher@JMFA.com.
Fisher joined JMFA in 2004 following six years of sales management with two of the nation's largest human capital consulting firms. In addition to his sales management responsibilities, Fisher is responsible for JMFA's strategic partnership with IntegraSys. He was instrumental in opening several new markets for his former employer, and succeeded in diversifying the company's product offerings in the finance and accounting divisions. Fisher was responsible for the design and implementation of Developmental Sales Training for all associates nationwide. His influence provided substantial financial growth and led to the quadrupling of the total number of marketplaces in two years.
About IntegraSys:
A business unit of Fiserv, Inc., (Nasdaq:FISV), IntegraSys specializes in end-to-end information technology services, including core processing, ATM and debit card services, Internet banking, bill payment and lending, and much more. IntegraSys serves more than 1,500 credit unions across the United States, forging lasting partnerships with clients by offering unparalleled customer service and delivering products and services that work together with unprecedented ease.
About JMFA:
John M. Floyd & Associates (JMFA) is a profitability and performance improvement consulting firm and a leading provider of overdraft privilege programs serving more than 2,000 financial institutions in 49 states and Central America. JMFA is also recognized for training, account acquisition, executive placement, fraud protection solutions and earnings enhancement programs, as well as product, service, pricing and technology improvement consulting. As a direct result of our programs JMFA has helped thousands of clients dramatically improve their performance and their bottom line. To learn more about JMFA please visit www.JMFA.com or call 800-809-2307.