There are a couple of things a credit union CEO should do with the Money Movement Analysis tool (Tool #536) in CU*BASE:

Comparing to last month: 

The tool is designed to use last month's ending balance to compare to the current date.  So one way to use this each and every month is to regularly compare the balance during, say, the third week of each month and see what accounts have had wide swings either up or down, and then act accordingly on a regular basis.

For example: On July 20, compare the current member status to the status as of June 30 and look for memberships where there has been a downturn of some amount (such as $10,000), and then contact those members (via email, a mailing, etc.) with some reminder of how much the credit union wanted their business. 

The key is the contact does not have to directly address the member's status, only remind them that they are on your mind.  You might also congratulate the members who had an upside of some amount (for example, $50,000+) on a monthly basis.  Of course it might alarm some people if you look like you are paying TOO much attention, so indirect messages are best.

Comparing to a previous period (extended):

At least twice a year, if not quarterly, ask CU*Answers to load up files from a comparison month 3 to 6 months ago.  Then look for accounts that have had a longer-term upside or downside.  Compare these accounts to last month and see if the long-term trend is valid or not.

For example: On July 20, compare the current member status to the status of members on April 30.  Find longer-term big shifts, analyze the members, then compare them to what they have been doing the last 30 days and make a decision on whether or not to contact them and how.

The key to the program is looking for trends that seem weird:

  • You know you have members who are saving for stuff and they will occasionally have drops in balance.  Okay, but what is the average activity and when is it not true to averages and you should act?
  • You know that you are getting seasonal deposits based on the member’s normal cash flow, but when are your deposits reacting not to their cash flows but to your pricing?
  • You know that you are getting new loans all the time and that people are hitting their lines, but who are the regulars versus the sporadic players and how do you manage each group?