Pioneer West Virginia Federal Credit Union Transcript
Credit unions by and large are fairly small financial institutions compared to, say, the
mega banks. And as such, we really need to be leveraging technology to enhance the
ability to deliver products and services to our memberships on a very efficient basis.
My CEO and I had a conversation early on in my tenure as CFO. He was saying things
like what information he had available to him typically was days and most likely weeks
old, served up piecemeal and frankly, the validity of some of that information was also
The financial reports every month were pretty much handcrafted by my accounting
manager who literally opened up a spreadsheet and would start typing numbers out of
the trial balance to compute various sundry numbers that went on each individual line
One of the problems we had particularly as I began some research going back to 2009
the delinquency ratio on our loan portfolio was well in excess of 200 basis points. But the
information available to our collections department was only available to them once a
month on a canned report generated by our core operating system. It really did not yet
allow them the opportunity to proactively intervene on things that maybe problematic
There is lot of fear in not knowing where things stand everyday particularly in regards to
quality of the loan portfolio. Which loans out there represent risk to the institution that
may go bad on a moment’s notice? Those things are pretty scary and it's like standing
on a street corner looking at where the traffic was five minutes ago. And then trying to
figure out whether or not we should cross the street or not.
I had fortunately had a very good experience with my pervious place of employment
where I brought in an IBM Solution particular the Cognos Software line that enabled us
to do some rather impressive things for them. Telling my new CEO about what I have
been able to do previously got him quite excited so we brought in the IBM Solution to
Pioneer. And being able to do some very important things for the business, helping us to
understand how we operate in almost a real time environment. The first thing that I look
at, my chief operating officer looks at and the CEO looks at every single morning is our
daily status report which is a dashboard of key metrics we developed
As recently as a year ago our net charge-offs to the institution were running in the
$700,000 range. Loan delinquencies were running in the 150 basis point plus range
We have now reduced our net charge off estimate for this year not from $700,000 or
thereabouts but to as little as a $150,000 even in this economy. we have also been able
to reduce our delinquencies from a 150 plus basis points down to only 14 basis points.
Obviously our goal is to get the basis points of delinquency is as low as possible. It will
never be eliminated completely at any financial institution but right now at 14 basis
points really our delinquency rate is the envy of the industry.
Our statutory reporting to the National Credit Union Administration we have cut the labor
time in order to preparing that report from something on the order of five to seven days
to about three days the most a 100% improvement or more.
Pioneer is actively looking for new merger partners to expand our business. We use the
IBM Cognos solution so that we can align our financial statements alongside anyone or
any combination of other credit unions in the nation to see how our combined institutions
will look to determine if they are in fact an attractive candidate to be approached about a
We are really on top of the world because we think in our market space in particular we
are the leading financial institution in knowing where we’re at every single day and that’s
going to pay off for us over the long term
Using advanced decision support tools, Pioneer created smarter loan management to cut delinquencies and increase loan growth.
- Instrumented: Pioneer’s solution aggregates multi-dimensional data from core operational and financial systems to deliver timely operational and regulatory information.
- Interconnected: The solution automates many financial reporting tasks and delivers tailored daily reports and dashboards to diverse groups of users throughout the organization.
- Intelligent: Predictive insight into loan delinquency enabled Pioneer to identify problem loans before they became critical, and to intervene to get members back on track.