Plansmith Blog

Why Shouldn’t My Financial Institution Use a Budgeting Program That Transcends Industries?

Posted by Megan Plis Knapp on 5/5/20 10:28 AM
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Banking, like Yogi, is a unique bear. If you haven’t worked in the trenches, you probably just don’t understand it. It’s an industry best served by those who have lived it.

As unique as the industry is – you guessed it – your budgeting solution should be just as unique.

We attend a lot of banking conferences and speak with prospective bank and credit union clients daily. In both of these scenarios we see financial institutions who initially get tempted by the versatility of budgeting programs that were “built to transcend” industries. However, as they get onboarded and finally dig into the program in real day-to-day life, they’re faced with a harsh reality. Unfortunately, they learn the hard way that their shiny new budgeting software is more of a headache than a help because it simply isn’t equipped to handle all of the complexities that come with building an effective budget for a financial institution.

Here are two of the major issues that surface with a budgeting program that transcends industries:

  1. Expert support doesn’t mean their staff is trained to handle your specific situations

As previously stated, banking is a unique industry. When you try to get support from a company who doesn’t specialize in banking, it’s unlikely you’ll find someone who’s trained in the exact circumstances you’re seeking help. However, when you call a company who is staffed with former bankers, you get a real person on the phone who not only knows the software but also understands the particular situation. For example, Plansmith’s sales, support, education, development, and implementation teams include former employees from all levels of banks and credit unions, presidents to loan officers.

  1. The software isn’t equipped to easily create solid financial institution budgets

If you’ve ever been through the process of creating a bank or credit union budget, you know it’s an intricate process. The ratios, reports, and sheer amount of numbers that are required to produce acceptable results for the C-suite and the board can feel overwhelming. So, attempting to complete the process with a program that simply wasn’t built with the intention of a financial institution producing a final budget will likely not be up to par. A budgeting solution that was created specifically for banks and credit unions will use the exact language common in the industry, and include the precise calculations, assumptions, and producible reports a financial institutions needs to be successful, both short term and long term. For example, Plansmith has bank and credit union versions of the budgeting and IRR software, Compass, that was designed with each institutions’ unique needs.

In summary, as appealing as multi-organizational software may appear, you can avoid inherent shortcomings by choosing a software designed specifically for the needs of your financial institution.

If you’re curious how a company like Plansmith that works exclusively with banks and credit unions can help you succeed, click here to schedule a discovery call.

Topics: community bank interest rate risk, community bank budget software, community bank budgeting, community bank planning, credit union planning, credit union interest rate risk