Anyone who has taken on the role of credit union CFO knows it’s complicated. The banking industry and business strategy as a whole have undergone significant changes, and the role of a CFO has evolved considerably in response to those changes. The bar for educational chops has gone up. A couple of decades ago, being a CFO didn’t require an advanced degree, but every CFO we talked to has an impressive educational as well as professional background. On top of that, CFO candidates need skills that have nothing to do with finance, such as strategic thinking, creativity and communication – so-called soft skills. So, what does it take to be a CFO in a credit union today?
David Savoie, President/CEO of LaCorp
CPA, Chartered Global Management Accountant, MS in Management/Banking and Financial Services
To be a CFO, there are, of course, the finance and accounting educational requirements and experience, which many potential candidates do have. However, a CFO needs to go beyond these requirements and be able to do even more. The ability to communicate is vital in this role, especially when talking with other departments within your credit union. CFOs must think of the organization as a whole and be well-rounded to handle the modern-day responsibilities of the role.
Savoie observed, “They must understand that not every decision comes down to the numbers, and they can’t have tunnel vision. They need to factor in the human equation, too.”
Melissa Matherne, CFO of Louisiana Federal Credit Union
CPA, Credit Union Enterprise Risk Management Expert, Named to 2023 Top 25 CFOs in Louisiana by Finance&Investing.com
As time passes, the role of a CFO has evolved significantly. In years past, the position was mainly focused on keeping track of the credit union’s financial information and writing all the institution’s checks. Today, CFOs are required to be more strategic in their leadership and collaborate with the other departments to ensure the credit union continues moving forward.
“Working as a CFO in a larger credit union requires a much more enterprise-wide view and broader leadership perspective,” Matherne said. “As a Chief Financial Officer, I have been responsible for Accounting and Finance, IT, Compliance, Risk and Collections. The balance of business judgment, acumen and strategic leadership becomes critically important.”
Casey Kucera, CFO of Jefferson Financial Federal Credit Union
CPA, MS in Finance and MBA
Technology has also played an essential role in the evolution of the CFO position. Creating, building and maintaining an efficient team has quickly become a top priority among credit unions. Hence, a CFO needs to understand people as well as new technologies to guide their credit union toward the best ROI.
“The role has evolved in my tenure,” Kucera explained, “becoming focused on strategic outcomes and maintaining fluency with rapidly changing technology, a trend especially relevant to the financial services industry. Automation and building efficiencies must remain top-of-mind for finance professionals, and it’s important to develop a working knowledge of technologies that can drive these efforts.”
At the same time, Kucera said, “I place a lot of emphasis on my team's professional development, focusing on providing them with the resources needed to bridge any skill gaps on their individual professional paths.”
Matt Koch, President/CEO at CSE FCU
MBA, Certified Credit Union Executive, Certified Credit Union Investment Professional, Certified Credit Union Financial Counselor
“To stand out and be a good CFO, I got my MBA. It helps show your boss or your credit union, your co-workers, ‘This person was able to go through challenges and overcome them,’” Koch said. “We learn some other things as well: call reports, ratio analysis, and understanding credit union financials. It does paint a story.”
Becoming a CFO doesn’t happen overnight. Even after becoming a CFO, there are plenty of new skills and subjects to learn and trends to watch. A CFO should always be open to new challenges and invest in themselves and other team members through conferences and ongoing training. Being proactive allows a CFO and their team to grow and evolve as the needs of the credit union change.
“Anytime you face a challenge, you find out who you really are, and then that just helps you better yourself for future challenges down the road,” Koch said. “You’re going to be challenged again. So, being uncomfortable helps you grow, and you’ve got to be comfortable being uncomfortable.”
The Modern CFO
So, what does it take to be a CFO in 2024? In addition to being responsible for the finances, CFOs must also be effective communicators, develop leadership skills, stretch beyond their department and be strategic about the direction and health of the credit union as a whole.