At the start of 2020, banks already faced a battery of challenges—from a volatile rate environment shaving margins ever thinner, to increasing compliance costs and ever-evolving customer expectations—and the arrival of a pandemic only heightened them.
In our current environment, every basis point in NIM matters. An agile culture of real-time responsiveness will separate the FIs that thrive in 2021 from those that don’t. Those FIs with the best analytics that can harness their data faster and focus on performance management will come out on top.
The CFO of the future will not only keep pace with this evolution, but also increasingly fulfill a role as a performance management leader within the FI. So how do you know if your FI is agile and responsive enough for 2021? Here are some clues.
1. You’re fearless and flexible in the face of change.
In the past year, we have all experienced firsthand how all the facts of a situation can change overnight. In a matter of days, a data set dating back even a month can become irrelevant. But you have what it takes to ensure your institution’s success in 2021: agility.
You move with, not against, the forces of the current moment. You know that looking backward, or dwelling on what could have been, would only keep you from making the best decisions right now. You keep moving forward, leading the way for the rest of your organization.
2. You can spot problems before they get out of control.
You know that your strategies are only as relevant as your most recent data, so you don’t wait for monthly or weekly spreadsheets. Instead, you visualize performance against budgets and goals daily, keeping everyone’s attention focused on the KPIs that are most important not only to the performance business units, but also your organization as a whole.
Conducting financial analysis and risk identification functions on a rolling, continuous basis keeps your institution one step ahead of competitors. It also helps identify talent risks or gaps and provides information for more accurate budgets and forecasts.
3. Your employees are united in a sense of shared purpose.
CFOs also have a role to play in driving that performance culture throughout the organization—both by encouraging performance-driven behaviors and supporting the acquisition and retention of top-performing talent. CFOs increasingly work alongside CHROs to develop KPIs, provide transparent and relevant performance reporting, and manage to FI goals.
One way to visualize this information in a way that is easily understood is through a real-time dashboard tool that presents it in a visual, easily understood way. Putting financial data and key performance indicators (KPIs) at employees’ fingertips daily helps them analyze performance and make fast, informed course corrections to achieve the goals of the organization. When all employees can see the impact of their work on the organization, it unites them in a shared sense of purpose, so everyone feels aligned on the “why” behind their day-to-day tasks.
4. You reduce lag times everywhere you can.
Automating financial reporting and analytic functions can eliminate time spent on—and human errors made in—more manual environments. This provides the ability to perform analysis in a fraction of the time, freeing up resources to communicate more with other business leaders, educate all levels of the organization on opportunities to improve, and advocate the adoption of a performance-driven culture.
Having daily access to loan and time deposit pricing and maturity data creates transparency and accountability across the FI, providing business leaders with daily access to actual metrics, not just plan metrics, so they too can respond more quickly to changing conditions and stay focused on organizational goals.
5. You choose the right tools for the job.
With the increasing remit to spearhead performance management, it’s important that CFOs have the most up-to-date data and advanced tools that they need at their fingertips. Flexibility, accuracy and immediacy are the name of the game.
With Banker’s Dashboard, CFOs can track key performance indicators (asset yields, funding costs, net interest margin) daily, spot subtle changes immediately and make course correcting decisions more quickly. Banker’s Dashboard interfaces with your core system to automatically deliver the most accurate data in easily digestible formats. Banker’s Dashboard provides CFOs the tools they need to analyze results, identify opportunities, and communicate with business leaders helping them drive higher performance in every dimension of the financial institution.
For more information on how Banker’s Dashboard can transform your ability to drive success at your institution, contact us today via the form below.
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