BAYTOWN, Texas, Sept. 17, 2007 (PRIME NEWSWIRE) -- Last week 55 credit union executives from around Tennessee gathered in Franklin, Tenn. for the annual Tennessee Credit Union League's CEO Conference (www.YourLeague.org). Executives participated in engaging sessions that generated thought provoking conversations and energetic exchanges of ideas. Featured speaker Cheryl Grace Lawson, Executive Vice President, John M. Floyd & Associates, provided executives tangible ways to reduce net operating costs, yet still meet the growing market need for quality financial services at competitive prices.
Lawson's presentation was very timely and relevant for financial institution executives based on a recent report by E-Scan. In the report, it was noted that controlling rising operating expenses and managing net interest margins are two key issues for credit union executives in 2007 and 2008.
In a low-margin market, it is particularly important for executives to consider a variety of solutions to enhance their institution's profitability. There are opportunities available for those financial institutions that learn to balance expense reductions with growth initiatives. Some of the methods discussed by Lawson included:
* Fully understanding your operating cost structure and cutting costs as needed. In today's competitive environment, inefficiencies cannot be passed on. You can no longer look at operating costs and product pricing separately. * Increasing competition from large banks is becoming heated. Lawson suggested conducting a process improvement review to check workflows and operating efficiencies. By improving efficiencies and driving down costs, a financial institution can price loans and other services more competitively. * Increasing the institution's profitability by identifying ways to increase non-interest income using a variety of methodologies such as: identifying thresholds on fees and service charges without "nickel and diming" the account holder; implementing overdraft privilege services; and looking at your branch cash management strategies to take advantage of the rising short-term interest rates. * Growing the number of account holders while also increasing product penetration is critical to long-term success. One key point made was that account holders many times don't mind the fees they are charged for various products and services, but they will remember the "experience." Don't expect sign-ups for add-on services if they are disappointed in their current service experience.
Lawson concluded, "In many situations credit unions have numerous 'old processes' in place. Improvements to operational efficiencies translate into improvements to a credit union's bottom line. A careful analysis of organizational structure, workflow and expenses can reveal new ways to streamline processes, improve employee performance, enhance the member experience, and ultimately build stronger member relationships."
Lawson has over 20 years' experience in global information technology and financial operations, consulting, communications, training and project management. The Houston, Texas native earned a B.A. in English from Carnegie-Mellon University, and an MBA from Rice University. She joined JMFA in 2001, rising quickly from Consultant to Engagement Manager to Executive Vice President, Implementation. She currently serves as compliance liaison for overdraft privilege and other profitability programs. Her responsibilities also include high-level sales support and administration for large financial institutions. Her career began as a systems engineer for IBM, later becoming an international MIS trainer for Chase Manhattan and Director of Communications for Bankers Trust Company of New York. She was CEO of a start-up that provided non-profit organizations with automation solutions. Prior to joining JMFA, she was Managing Consultant for DACG, Inc. in Chicago and Houston, and is credited with saving approximately $10 million with the introduction of high efficiency technology strategies.
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 its 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.
About Tennessee Credit Union League:
The Tennessee Credit Union League was formed in 1934 as a 501C-3 non-profit trade association for Tennessee credit unions. It is the mission of the League to promote and support the success and advancement of credit unions in meeting their service and structural goals.
For More Information or Interviews:
Cheryl Grace Lawson, Executive Vice President, John M. Floyd & Associates, 800-409-8253; Cheryl.Lawson@JMFA.com