A recent CUNA forecast predicts credit unions’ ROA will fall over the next two years. The study revealed credit union earnings would remain depressed because of lower interest rates and less non-interest income. Even if the economy improves, CUNA is pessimistic about ROA.
No one wants to be held accountable for a situation over which you had no control. The pandemic has taken a toll on all aspects of our lives, including financial institutions. Yet you are still responsible to your Board for maximizing returns.
It’s not all gloom and doom. Credit unions can boost their ROA and ROI right now. One way is to convert your vendor management program from an expense to an expense reduction program.
Some vendors pack contracts with hidden expenses and excessive fees. They’re betting you don’t understand fair market pricing and don’t have the data to negotiate a good deal into a great one. They’re okay with you paying for products you’re not using or are outdated. And, vendors love it when you don’t contract recourse for their mistakes. Making you pay to fix a product your vendor installed is a nice profit center.
Stop throwing your members’ money away with an ineffective vendor management program. Instead, start saving money to increase your ROA at a time when you really need it. Only Maple Street has the Vendor Advantage System®, a complete system that turns your vendor management program from an expense into expense reduction. The Vendor Advantage System® is the only system that addresses all parts of the vendor management process, from selection to contracting, to measuring performance, consistent with vendor management guidelines and supply-chain management best practices.
With Maple Street, your vendor management program is a proven process to cut vendor expense, improving ROA and ROI. The best part is we do almost all the work for you, so you have more time to focus on what is essential: serving your members.
Maple Street guarantees reduced expenses, improved performance and managed risk. As interest rates remain low and non-interest income decreases, your best opportunity to increase your ROA is to stop wasting money with the wrong vendor management program.
Maple Street has saved our clients over $132 million and counting. Find out how much we can help you. Call 800-513-6839 or email email@example.com to start increasing your ROA now.
Background for this article was provided by Credit Union Times covering how credit union margins remain under pressure.