Aug 12 2014

Addressing the Revenue Growth Challenge


Increasing revenue will continue to be a priority for credit unions looking to jump-start long term financial sustainability and growth. One of the keys for generating consistent non-interest income (NII) is to invest in a combination of innovation and product design competencies.

Ron Shevlin
Senior Analyst
Aite Group
Report Number 336

Executive Summary

You can’t cut your way to growth. Credit unions of all sizes have responded to the Great Recession and recent years of slow growth by focusing on efficiency and even shrinking assets to maintain capital. But cost cutting solves shortterm profitability without building an engine for longterm growth. Stubbornly narrow interest rate margins mean that even credit unions that are growing loans are hungry for additional sources of revenue. Topline growth is key for financial sustainability.