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Conference 7.286::dcu

Title:DCU
Notice:1996 BoD Election results in 1004
Moderator:CPEEDY::BRADLEY
Created:Sat Feb 07 1987
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1041
Total number of notes:18759

916.0. "Benchmarking the DCU against a bank" by MONTOR::KYZIVAT (Paul Kyzivat) Wed Feb 08 1995 18:47

    A thought occurred to me recently on a useful metric for comparing the
    performance of the DCU against banks - while still valuing the
    difference:

    Suppose the DCU instituted a 'virtual' fee system similar to that of
    some nearby bank chosen as a benchmark.  The revenue which would be
    realized by such a fee system would be calculated just as if it were
    real.  The fact that lower or no fees are actually charged could then
    be accounted for as a subsidy from what would otherwise be profits.

    These virtual profits could be combined with any actual profits
    returned to the members, and the resulting number published.
    Maximizing this number would be an excellent goal for the President.

	Paul
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916.1New title for topic: Metrics by which to score DCU CEO performanceCADSYS::RITCHIEElaine Kokernak Ritchie, 225-4199Mon Feb 13 1995 12:0139
Paul (.0)

That is an interesting suggestion.  But I think it's a little complex.  It
reminds me of the Relationship Banking idea, where you need a spreadsheet to
figure out which fees you may or may not be charged this month.  If the formula
for success is hard to understand, then the members have a hard time knowing
where they stand from month to month.  And the potential for an unpleasant
surprise is greater.  Such a surprise could be a fee that is charged, or when
someone doesn't get interest on their share draft account because their balance
dropped below some arbitrary limit.  If DCU is going to spring surprises on the
members, they should be pleasant ones, along the lines of bonus dividends or
interest rebates.

I think the metrics for measuring the performance of the DCU (and its President)
are fairly simple:

Has the number of members increased or decreased?
    We've lost 1/4 of our membership since the Mangone loan scandal.  I don't
    care that Digital has been having layoffs.  If DCU was truly serving its
    members, they would stay.  People only leave if they find a better deal
    elsewhere.

Has the percentage of members who use DCU as their primary financial institution
increased or decreased?
    I don't know the numbers on this.  But I think it should be a goal to get
    more people to say "DCU is my primary financial institution" next year than
    say that now.

Do all members have equal access to the credit union?
    This is not true now.  It may not be solved overnight, but DCU has a lot of
    work to do in this area.


These, of course, presume that we maintain our strong fiscal position.  I'm not
in favor of increasing the capital ratio by reducing the number of deposits.  We
should be able to keep the historically high loan quality, while offering good
savings rates and good loan rates (see 915.*).  

Elaine
916.2DAN and RTN numbersCOOKIE::FROEHLINThere's life after DEL [*...]*.*;*Thu Mar 02 1995 22:525
    Where do I find my DAN (Depositors Account Number) and DCU's RTN
    (Routing Transit Number)?
    
    Thanks
    Guenther