Are you planning to become the PFI for Walmart, Amazon and Apple? Ambition is important but realistic ambition is best. Understanding the realistic size range of business members for your credit union is important for deciding what features you need in your digital offering.
As companies get larger:
· Accounting and finance departments have more people that need digital access
· Workflow and the approval process gets more complex
· Real time cash management needs become more important
· Companies transition from Excel to QuickBooks to NetSuite
· Foreign exchange, multi-currency and multi-language accounts may be required
· Complexity of reporting and forecasting requirements increases
· Security and fraud management need more sophistication
Here is my very rough take on what works based on credit union size.
CU AUM Top End of Business Member Size in Millions
100 2-3
500 10-15
1,000 25-30
5,000 75-100
Of course, this is an oversimplification of a complicated equation and there will always be exceptions.
A business needs to borrow when clients are paying late and earn interest on excess cash. The limit on client size often will depend on the maximum LOC the credit union is willing to offer.
Author: Chris Doner, Founder and CEO, Access Softek