MFA Musings: 3/11/19
Data and Execution.
I have a request to try to incorporate NASCAR racing into my economic update. I love the challenge, so thank you, Jeff. Auto racing is all about data and execution, just like a financial institution. We need to read the data, make adjustments and move forward. I believe this is a point that can get missed at times.
It is easy to ignore the data and move forward using our gut instincts. What the gut may miss is the volume of people visiting any of your branch lobbies. Closing a branch can be considered corporate suicide in many institutions. Using data to make sure that you have the correct size and locations of facilities is paramount.
Speaking of data, NASCAR understands that a limited number of fans attend events. They have capitalized on a significant TV following resulting in a 10-year TV revenue of $6.6 billion, or $660 million a year. How do we capitalize and get paid for our online presence?
Income for your institution should not just come from your margin. Income needs to come from several actions, such as non-interest income. For example, Forbes magazine reported that Dale Earnhardt Jr. earned $28.1 million from June 2011 to June 2012. What is interesting is analyzing the way he earned his money. Junior earned $4.1 million in salary, $11 million in personal endorsements, and $13 million in winnings. Diverse revenue is a true win.
Contact your MFA advisor to discuss ways to grow profitability in this changing market. All of us at McQueen Financial are dedicated to your long-term success.
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