CUBenchmarker

Traditional Benchmarking vs. Power Benchmarking

In addition to using CUBenchmarker for customized analysis, CUBenchmarker includes the following reports as predefined business models.

Traditional benchmarking looks at one variable at a time, while power benchmarking looks at multiple variables in one process. By doing power benchmarking, a credit union can look at its overall business plan and find credit unions that have similar goals, yet have higher performance. These are your high- performing peers. High- and low-performing peers are defined below:

After applying the model to a selected peer group of credit unions, CUBenchmarker identifies benchmark partners. They’re referred to as high- and low-performing peers.

High-Performing Peer

A credit union is a high-performing peer if it has fewer resources and more services. For example, lower operating expenses and more in total loans outstanding and more total deposits.

Low-Performing Peer

A credit union is a low-performing peer if it has more resources and fewer services. For example, more operating expenses and lower in total loans outstanding and fewer total deposits.

In addition to using Credit Union Benchmarker for customized analysis, CUBenchmarker includes the following reports as predefined business models.

Simple Efficiency Report

This is a general look at a credit union’s overall efficiency, focusing on operating expense and total loans and deposits. CUBenchmarker breaks down credit union operations into resources and services. In the simple efficiency model, operating expenses are the resources, and total loans and deposits are the services.

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Membership Growth Report

How much do you spend growing your credit union’s membership? Are you getting the results you want? With the membership growth report, your credit union will identify credit unions that spend less on member education and promotions, but have higher membership growth and higher loan balances per member.

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Employee Compensation Productivity Report

This report identifies credit unions that are controlling compensation and benefit costs, yet are providing more services. This report may help your credit union uncover ways to control skyrocketing health care benefit costs. You can run this report with an overall peer group consisting of credit unions located in areas with a similar cost of living. The report has compensation/employee expenses as resources, and loan growth, number of loan originations, and number of new accounts as services.

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Branch Effectiveness Report

This report will help determine if your branches are working efficiently. Your credit union can identify credit unions with fewer assets but more branches and more loans, deposits, and members per branch.

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Profitability Reports

How profitable is your credit union? Are you using your capital to get a better return on the dollar?

1. Credit Union Profitability. Credit unions look at return on average assets as a primary key ratio. This model will identify credit unions that have lower capital, yet have a higher return on assets.

2. Bank Profitability. Banks tend to look at return on equity as a key performance ratio. The bank profitability model looks at how profitable credit unions are when they have a higher capital base.

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Capital Use Report

Is your credit union spending too much on brick and mortar and still not growing its membership base to its full potential? This report will help you identify how well your credit union is doing regarding the expense of your land and buildings in proportion to the number of new accounts and membership growth.

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Traditional Efficiency Report

This takes a more detailed look at the credit union’s overall efficiency, modeling efficiency and member benefits. In this report, the resources are operating expense, and the services are loan rates, dividend rates, number of transactions, and total amount of loans and savings.

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