Conference on Credit Unions 2018

CU18202 - Relationship Profitability: The Holy Grail

Oct 24, 2018 7:00am ‐ Oct 24, 2018 7:50am


Can you identify your most profitable member relationships?

As credit unions consider entering or expanding their commercial lending programs it is important to accurately understand the contributions from these business relationships.  There are currently $68 billion outstanding commercial loans on credit union books representing a 40% growth since 2014.

On average, only 20% of relationships are creating economic profit, and only 1% of those create most of that value, yet many institutions cannot accurately rank their relationships based on profitability. In a recent survey conducted by Kaufman Hall and FMS, 91% of institutions felt that they should be doing more to leverage profitability in their decision-making processes.  By analyzing and better understanding the drivers of profitability, a credit union can make changes to benefit all members by focusing on retention strategies for highly profitable members and finding ways to improve the profitability of those less profitable members.

Learning Objectives:

Join our session to learn how relationship management can transform your institution. We will discuss:

  • Relationship Management: Practical strategies to better manage and analyze member relationships
  • Account, Member and Relationship Profitability: Measuring progress toward strategic goals through a more comprehensive look at member contributions to overall profitability
  • Relationship Pricing: How understanding relationships and each member’s sphere of influence lets institutions quantify high and low-performing members, allowing relationship managers to make more informed decisions when pricing new business


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