Key takeaways
- • Efficiency ratio (noninterest expense divided by revenue) is the benchmark that matters.
- • Process improvement is the most direct lever for credit unions to close the efficiency gap.
Background
In 2009, the Filene Research Institute hosted a series of roundtable discussions for credit unions with McKinsey & Company consultants around the country. A key takeaway came from comparing the efficiency ratios (noninterest expense divided by net interest income plus noninterest income) of credit unions and banks with between $500 million and $17 billion in assets.
The research
Working with Filene, ProcessArc examined where credit unions lose efficiency and how Lean Six Sigma process improvement can close the gap with banks, without compromising the member experience that sets credit unions apart.
Download the full report for the findings and recommended improvement opportunities.
Sheila ShaffieCo-founderBusiness transformation leader who honed her skills at three GE businesses: Plastics, Healthcare and Capital. GE Master Black Belt, University of Chicago MBA and co-author of The McGraw-Hill 36-Hour Course: Lean Six Sigma.