Five Ways Credit Unions Measure Branch Performance

Tracking branch performance is vital for all credit unions, but not all credit unions track performance alike. Different measures are important because although a branch may show excellent performance using one approach, using another approach may reveal an opposite result.

 
 

Tracking branch performance is vital for all credit unions, but not all credit unions track performance alike. Different measures are important because although a branch may show excellent performance using one approach, using another approach may reveal an opposite result. Although no measure is better or worse than any other, credit unions should try to use the measures most appropriate for their specific criteria and goals. Listed below are five common measures used to track branch performance, each with an example of a credit union that uses that measure. The list should not be considered exhaustive but merely a snapshot of possible options and the credit unions that use them.

Growth: Perhaps the most common measure used to track branch performance is growth. A credit union using this measure is Midstate Educators CU (Columbus, OH, $72M), which tracks growth in members and loans. Midstate Educators uses this information as indicators of their overall growth and financial bottom line performance.

Throughput: Another measure for tracking branch performance is throughput, which measures items like teller transactions performed or service calls answered. SELCO Community (Eugene, OR, $733M) has begun measuring teller transactions and loans per employee to create a baseline for their branch performance. Using throughput metrics, credit unions have access to such data as transactions per branch, per teller and even per time period during a day. Many credit unions use the data to help them better allocate staffing levels or see which area is having the greatest effect on their overall figures.

Mystery Shopping and Satisfaction Surveys: Mystery shopping can give a credit union a random performance snapshot at a given instance. The individual results can then be averaged to show branch performance and service for the entire credit union. A unique example is demonstrated by Truliant FCU (NC, $1.1B). Truliant conducts satisfaction surveys on every fifth member. The data is then transmitted to a central server that is linked to a six-story obelisk with a glowing orb on the top. The obelisk is located outside Truliant's main corporate office and visible to passers-by. When scores are positive, the light glows a deep blue. As the numbers begin to drop, the color shifts towards green. Truliant thus not only monitors member satisfaction but it also conveys the level of service in a very public manner.

Product Performance: Product performance measures the number of product sales during a given period. Examples are the number of new accounts opened or the quantity of approved loans for a particular type of auto loan. Using this measure for branch performance is Service Credit Union (Portsmouth, NH, $1.1B). It looks at the number of credit cards, new checking accounts, and direct deposit penetration in those checking accounts.

Payback: The payback method is one that has become especially popular for in-store branches. Payback measures the amount of time a new branch, service, or investment takes to earn back the cost it took to initiate it. To do this, most credit unions set a date when they expect to see the investment having paid itself back. A credit union can then match the percentage of time that has lapsed to the percentage of the cost they have made back. Community America Credit Union (Lenexa, MO, $1.5B) uses this kind of tracking for branches.

 

 

 

May 14, 2009


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