Lending remains critical to both a credit union's member service and revenue generation. However, even highly competitive retail and business loan offerings must contend with several challenges. With the influx of non-traditional and online lenders, consumers and businesses have more options to secure funds than ever before. In addition to the heightened competition in lending, while persisting low interest rates might be excellent for member service, they inevitably hinder loan revenue. Low interest rates, combined with requirements to keep more money in capital reserves, means credit unions simply cannot afford to let excess funds go un- or underutilized. They must lend wisely with the funds that are available, especially until they can generate more revenue from their loan portfolios. To optimize financial performance, credit unions cannot leave funds on the table, nor can they shoot from the hip in determining how to best allocate those funds.

Centralize Data

Strategizing around revenue growth should begin with the elimination of disparate spreadsheets for housing data in favor of a single, centralized repository. Only when both internal and external data from the core, general ledger and third-party systems is combined can a credit union accurately pinpoint both limitations and opportunities for revenue growth. As credit unions increasingly realize the value in tying the measurement of revenue to their back-end systems, they must begin by consolidating, organizing and harnessing their own data.