Brooks FI Solutions delivers practical, implementable solutions to Credit Unions of all sizes in every phase of Retail Banking and Payments. Engagements can range from a quick 10-day evaluation of a new product opportunity, RFP preparation, or vendor evaluation to a full-scale Strategic Plan or RFP Process. Because Brooks’ consultants have hands-on experience, we deliver practical, no-nonsense solutions that can be implemented successfully within our clients’ environment.
Credit Unions face several issues in the Consumer Lending arena.
• Which loans are profitable?
• What LTV is acceptable for Home Equities?
• Is the Credit Union pricing effectively? Is the Credit Union maximizing its Delivery System opportunities?
• Is it targeting the right Members / prospective Members?
• How can it meet its community requirements effectively?
Brooks’ consultants have deep experience in all types of consumer lending – from traditional loans (credit cards and executive lines of credit, unsecured installment loans, direct and indirect auto and home improvement installment loans, student loans, and installment and revolving Home Equity) to more exotic loans (Marine, Timeshare, Auto Floor Plan, etc.).
This experience can be applied to allow our clients to improve any consumer lending function. The application of Brooks’ proprietary Profit / Risk analysis will help many organizations by providing a different market / customer view than many organizations typically employ. Brooks provides its revenue generating and / or cost saving expertise to our clients in every phase of Consumer Lending - marketing strategies, credit / collections analysis, functional cost analyses, processor analyses / RFP’s, and others.
Credit Unions face challenges in the Credit Card Business.
• Many strategists suggest that scale is critical – is it?
• Should the Credit Union be an Issuer or Agent?
• Should the Credit Union be an Acquirer or Agent, or Acquiring Sponsor for an ISO?
• If the Credit Union is an Issuer, what is its portfolio’s Profit / Risk profile?
• Is it targeting the right prospects?
• Should it be in the CoBrand / Affinity business?
• If it is / should be an Acquirer, what segments should it pursue? Which ones are profitable and / or growing?
• Does the Credit Union have the right Issuing / Acquiring processor?
• How do cost / risk management (credit and collections) match up against industry “best practices”?
• Does the Credit Union have the right strength and expertise in management / personnel / operations / risk management?
Credit Card is a strength of Brooks’ consultants. They have been involved in significant Issuing and Acquiring Strategy development, acquisitions, divestitures, RFP development, Profit / Risk analysis, Marketing strategies, and Operational Improvement / Cost Analysis projects throughout the Americas.
This experience provides Brooks the ability to determine the best strategy for our clients’ situation. Brooks will provide a step-by-step implementation plan to allow our clients to maximize the benefits of that strategy, providing its revenue generating and / or cost saving expertise to our clients in every phase of Credit Cards - marketing strategies, credit / collections analysis, functional cost analyses, processor analyses / RFP’s, and others.
The EFT arena provides Credit Unions several challenges today.
• Can the Credit Union manage the risk of its Signature Debit program effectively?
• Should it add a rewards program?
• Can the Credit Union determine the optimal Network Membership strategy?
• Should it join a Surcharge-Free ATM Network, or pay for Members’ surcharges, or pay to brand the ATMs of an Independent Sales Organization?
• Should it own its own ATMs? Should it place off-premise ATMs?
• Who should process its debit cards or ATMs – in house or outsource processor, and if outsource – who?
Brooks’ consultants have been involved in this arena for more than 30 years, and were instrumental in the initial strategy development and implementation of many debit issuing and ATM deployment networks and programs. This experience allows Brooks to determine the best strategy for our clients’ situation, and will provide a step-by-step implementation plan to allow our clients to maximize the benefits of that strategy. Brooks will provide its revenue generating and / or cost saving expertise to every element of EFT / POS / Debit - marketing strategies, ATM Placement evaluations, functional cost analyses, processor analyses / RFP’s, and others.
Every Credit Union faces significant marketing challenges – from strategy through implementation.
• Does the Credit Union truly understand its Segment profitability? Product profitability? Member profitability?
• If the Credit Union believes it does understand any or all of these, is risk factored appropriately?
• Is the Credit Union interested in serving new Segments / potential Members – Seniors, Small Business, Unbanked / Low Income, Ethnic?
• How has the Credit Union positioned itself in the market?
• Is that positioning working and recognized?
• Do the Credit Union’s policies, quality of processes, and behavior of its people reinforce or detriment that positioning?
• All Credit Unions “embrace” cross-selling – is it effective? Profitable for the Credit Union?
• Does the Credit Union know?
Brooks’ consultants have considerable experience and expertise in these areas, and have developed, and assisted in the implementation of, many such projects. This experience allows Brooks to work with our clients to determine the best strategy for our clients’ situation, and will provide a step-by-step implementation plan to allow our clients to maximize the benefits of that strategy. Brooks will provide its revenue generating expertise to every element of Credit Union Marketing – especially Market Segmentation, Segment Profitability, New Segment strategies, Product Profitability / Customer profitability analyses, etc.
Credit Unions face significant questions in the Mortgage Business. A mortgage is, for most consumers, the largest single financial purchase that they make. Yet most Credit Unions outsource origination, servicing or both (and even if they originate, most sell servicing, which “sells”, in effect, total control of and service quality to, the Member.)
• Granted that accounting rules and the Secondary Market provide severe challenges to retaining Mortgage servicing, but should the Credit Union sell its Members?
• Does / should your Credit Union originate Mortgages?
• Should the Credit Union retain / sell the servicing?
• What options are available to control quality?
• If the Credit Union does Originate / Service, what hedging policies are in place?
• Should the Credit Union retain Mortgages in its portfolio? If so, which ones?
Brooks FI Solutions’ consultants have had to manage these questions in a “real-world” environment. While there are no stock solutions to the above questions, Brooks’ consultants, because of our experience, will lead our clients through the decision-making process, and develop a strategy and implementation plan to help our client meet your business objectives.
The questions surrounding Retail Delivery have plagued Credit Unions for years – especially in the recent era of Internet, Telephone, and other forms of delivery.
• Which branches are profitable?
• Does the Credit Union really understand how to calculate branch profitability?
• How does it measure a mature (or ageing) branch versus a new one – or one that is growing versus one that is stagnant?
• Is the Credit Union managing its Seg Group(s) effectively?
• Should it move Members to remote delivery options? Which ones?
• Does the Credit Union do it through pricing, reducing branch availability, or other alternatives?
• Should the Credit Union be opening new branches?
• If so, should they be traditional branches, In-Store Branches, “Satellite Branches”, or something new?
• Does the Credit Union have the right mix of Branches, Internet, ATM, and Call Center delivery?
• How is it using its Call Center and Internet capabilities?
• Is the Credit Union meeting its Members’ needs?
• Has it priced these services effectively given its strategy?
• Who is responsible for sales versus service in the Branch / Call Center? Are they the right people? Have they been properly trained? Are they properly compensated to achieve the Credit Unions’ objectives?
The consultants at Brooks have deep experience of struggling with these questions – both as bankers and in a consulting role. Our consultants have deep experience in delivery issues, from Branch (standalone, in-store, etc.) through remote (Internet, Call Center ATM / Other). Our mission is to leverage this experience on our clients’ behalf to develop strategies, tactics, and implementation plans to help our client meet your business objectives.
Stored Value Cards are a relatively new phenomenon in the Retail Banking arena. It is a broad product category, ranging from relatively simple Gift Cards through Payroll Cards, Check Cashing Cards, Travel Cards, Government Payment Cards, Health Care Cards, etc. These products can bring in new revenue streams, allow a Credit Union to reach new members, as well as expand / protect existing Member / Seg Group relationships.
• Has the Credit Union evaluated these products?
• Which ones best fit the Credit Union’s strategy?
• Should the Credit Union issue the cards themselves, or use a “Turnkey” solution?
• Who should the Credit Union choose as a processor?
• How should they be priced?
Brooks’ consultants have spent considerable time evaluating the market and working with dozens of Financial Institutions to help answer these very questions. We will help the Credit Union review the various products in light of its current strategy, and develop a road map, including detailed implementation plan, for making the appropriate product(s) part of their mainstream Retail effort.