Credit Union Benefit Calculator
Building the Business Case for Your Credit Union
The path to a realistic analytics benefit realization business case
Starting with Industry-norm assumptions for attrition, growth and product substitution rates, we pre-calculate the total potential benefit of the FlowTracker solution for every Credit Union using published NCUA Call Report data. This total potential is attributed to specific Use Cases based our experience woring with US Credit Unions.
From that information base you can model the potential benefits of each use case for inclusion in your analytics business case. To get from gross potential benefits to a realistic assessment of the business benefits you can reasonably expect to realize you need to tailor some key assumptions:
- Deposit Margin (Revenue Percent on Balances) – in today’s extraordinary low rate environment benefits are compressed. We recommend using a cyclically normalized margin rate to better represent the margin you can expect to realize in normal conditions.
- Benefit Realization Percent – these should be adjusted to reflect your strategy and capacity to implement business activities to realize value for each Use Case.
The model enables you to change these assumptions to reflect your actual business benefits realization strategy and capabilities. For example if you assume that a Use Case is impractical at your Credit Union, simply assign it a business benefit realization rate of zero. Conversely if you are very confident that your Credit Union can fully implement a Use Case to realize the potential benefit, you can assign it a high value such as 80%
How to Use the Credit Union Use Case Business Benefits Calculator
- Find your Credit Union using the State and Credit Union Name drop-downs. The lists are searchable.
- Enter your Deposit Margin assumption.
- Enter your Benefit Realization percent assumptions.
The model calculates the realizable benefit potential for each Use Case for your Credit Union, and summarizes the results by functional area – Finance, Marketing, Operations. By varying the assumptions you can perform sensitivity analysis to assess the impact of your assumptions on the realizeable business benefits you can expect to achieve at your Credit Union using FlowTracker Analytics.