Zombies. Vampires. Ghouls. Budgets.
All are terrifying to think about…and budgets might just be the scariest monster of all. When discussing his upcoming budget process, one credit union CEO said he was already resorting to prayer to defeat the beast. Yikes!
Luckily, you don’t have to fight the monster alone. Here are a few thoughts as you work on your bank or credit union budget for next year:
- Pay attention to payments. The world of payments is moving fast. Are you ready? It’s worth exploring how to get up to speed in a market of proliferating stablecoin, instant payment and pay-in-installment activity. Don’t wait for consumers to ask you for it. By that point, you’re already behind the curve. What budgetary actions can you take to stay afloat in the payments world?
- Your website is one of your most important branches. That’s right. Your website is the place most people visit before ever walking into a branch (if they walk in at all). Yet, it’s often neglected in budgets. Leaders pour millions into new physical locations but won’t spend thousands on a new website. And that’s not to say physical locations are bad. You may need one to serve a new market. Just don’t let your versatile digital branch languish if it’s time for an upgrade. An outdated website will cost you far more than designing a new one.
- Marketing and training are not discretionary. These two areas are typically the expendables of the budgetary process. And no, not the cool, action movie hero kind of expendables. The kind you toss overboard when you see the iceberg ahead of your ship. But excessively cutting these areas hinders your organization’s success. Without marketing, no one will know what you offer or who you are. And without properly trained people, you’ll never deliver service worthy of retaining consumers. A McKinsey article notes that United Airlines invested in major marketing campaigns during the pandemic. A seemingly odd choice…until you see the company’s two years of growth immediately following Covid. Ask yourself: are you missing out on future growth by cutting marketing or training?
- Align your bank or credit union budget to your strategic plan. The hardest part of strategic planning is taking your plan off the proverbial shelf and implementing it. And implementation is also what makes your strategic plan most successful. So, don’t let your plan fall at the first hurdle by not budgeting for it. Don’t get cold feet after a thoughtful planning process. Allocate funds in a way that prepares your plan for success.
- Budgeting is a yearly activity with multi-year effects. You budget every year, but how you budget one year impacts you for several years to come. It pushes you forward, sets you back or keeps you still. It puts you ahead of the curve or behind the curve. The McKinsey article mentioned that businesses that invested during the 2008 downturn saw growth the following ten years. Ten years! Your decisions now could have a decade-long impact. Keep that in mind when deciding where to invest and where to cut.
Are you collecting quotes to make budget season more knowable and less scary? Book a free consultation call to talk with us about websites, marketing and training…and get the best possible value for 2026!
