Plansmith Blog

The banking industry is complex, and it’s only getting more intricate. For successful organizations, budgeting and forecasting are the foundation of strategic financial planning. They guide decisions, manage risk, and ultimately steer the organization towards its goals. However, striking the right balance in the level of detail included in these crucial processes, namely budgeting and forecasting, is a delicate art. Go too granular, and you risk getting lost in the weeds, obscuring the bigger picture. Provide too little, and you lack the actionable insights needed for effective management. Finding that "just right" Goldilocks zone is paramount.

Why Your Financial Institution Needs a Playbook in 2025

The financial landscape is set to undergo significant shifts in 2025, driven by fluctuating interest rates, evolving economic conditions, and a changing political environment. These factors present both opportunities and challenges for financial institutions, making it essential to have a comprehensive playbook. A playbook not only provides guidance, but ensures that institutions remain agile and focused on key objectives, especially during fluctuating rate environments. While we don’t know how much rates may fluctuate, we do know it’s important to be prepared for any scenario.

With the increasing number of financial planning software options available, it can be difficult to determine which one is the right fit for your organization. That's why it's essential to consider several key factors before making a decision. In this blog, we'll examine how Plansmith's planning suite stands out from the competition and why it could be the perfect choice for your financial institution.

For six wonderful years, I’ve had the privilege of being a part of Plansmith’s marketing team. From marketing assistant, to department manager, to my most recent role as Director of Marketing, I’ve experienced firsthand how important our company’s mission is: improving planning. Why? Because there is nothing more frustrating than having a brilliant idea with no real way of making it come to fruition. However, with incredible people and a quality plan, anything is possible – and doable.

Like many of you, I notice how important the planning process is when I’m putting together my ideas for next year. Though a marketing plan is a bit different than financial institution planning, the core concepts are the same.

Plansmith is a planning company, as our name implies. For 50 years, budgeting has been what we’re known for. We get a lot of questions about our top budgeting advice, and as we kick off a new year, it’s the perfect time to offer some fresh tips for successful budgeting.

Though we certainly suggest using a robust budgeting solution like our Compass software, this advice applies to any process. We understand many organizations still use spreadsheets or outdated software, and that may work for them because they’re used to it. However, quality planning software makes budgeting much easier, more accurate, and more approachable for all parties involved – including the board during presentations.

So, what are some realistic tips for effective budgeting?

There’s something about summer that always represents freedom to me. It could be the Fourth of July resonating past the day of, or it could be the warm weather and carefree attitude that comes with it. Maybe it’s the road trips we take and barbecues we host with friends and family. Maybe it’s the trips to the pool or the beach. Maybe it’s the general sense of enjoyment that we try to soak up before the weather gets crisp again.

If COVID-19 has taught us anything, it’s that plans change.

For example, I had a cruise booked and paid for, including excursions to play with sea turtles and visit Mayan ruins this spring. Two of my close friends and I were set to venture from Tampa to Cozumel, Belize, and Honduras – live our best tropical lives, if you will. We were supposed to set sail April 19^th and return April 26^th.

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.

For almost 50 years, Plansmith has helped financial institutions remove the stress from budgeting and interest rate risk.

As customer preferences and regulatory challenges progress, we create new solutions to complement our core in-house budgeting and IRR solutions.

Are you familiar with all of the ways Plansmith helps financial institutions like yours?

After almost 50 years in the biz, we've learned a thing or two about banking. And since most of our employees have spent time in the industry, we know the heavy hitters that keep bankers up at night.

That's why we designed our business around one specific goal: giving our clients one less thing to worry about.