Are You Operating in a Successful Environment?
Written by: Bill Dolan, CMB, AMP
With profit margins continuing to be squeezed, costs are escalating faster than revenues. And though the economy has surprised forecasters with its resilience, most lenders have had to cut headcount with potentially deeper cuts to come. The ability to generate income and manage costs will again be tested this year in new ways. Current interest rates, more assertive regulations and the fight for deposits will continue and are just some of the drivers that will affect the industry in 2024.
You, as managers and leaders, cannot allow your business to bounce along from one crisis to another, without clear direction and end point required.
Ask yourself those tough questions as you face some continued headwinds in 2024:
Just how profitable will my organization be this year?
How much excess staff/capacity am I still carrying?
Am I experiencing technology turbulence?
Is the technology I’m currently using along with my systems, being fully utilized? Do I know?
Have I hired highly experienced and salaried compliance and risk management personnel, yet, I don’t have a compliance management system (CMS) implemented today?
Do my compliance and risk management team have a true understanding of all business areas within my organization? Do they know how to perform their responsibilities and functions within those areas?
Is my current LO Comp plan aligned with the current cycle, or am I still compensating my LO’s at the height of the refi boom, several years ago?
Are there employees who fit the values and beliefs of my organization and who deserve an opportunity to advance, but lack the necessary skills needed for the position because they require training?
Am I trying to do more with less in serving my customers and members during this cycle?
Am I leveraging my data to build digital capabilities and forge strategic partnerships to gain market share?
Why not allow SCA to be the dependable catalyst for driving growth, profitability, and trust today. Let SCA’s Senior Strategic Consultants provide a quick and reasonable Profitability Analysis to help you and your organization (bank or credit union) identify ways to optimize profitability as it relates to various projects, plans or products, analyzing those profits derived from your various business stream of revenue.
Our industry-aligned SCA team helps clients to proactively respond to trends – leveraging new technologies to streamline operations, reduce costs, and improve the customer experience while adapting to industry and regulatory mandates.
For more information and to arrange a consultation regarding your profitability analysis, please contact Bill Dolan, Director, at (617) 694-2617 or by email at Wdolan@scapartnering.com. To explore other services tailored to your institution, please visit our Solutions Page or submit an Inquiry Form today.
