CPM Federal Credit Union Membership Profitability Analysis Using Power BI

Profitability in any business is crucial for its sustainability and growth. The nonprofit organization CPM Federal Credit Union uses fees like non-sufficient funds (NSF) for revenue placed directly into its members. The project focused on how eliminating fees at the policy level would impact CPM’s ability to maintain its income and provide much-needed insight into members’ profitability, as well as retention. A Power BI model was developed to determine how policy changes would affect CPM's profits (through removal of a major income stream) and could be offset by identifying potential substitutes to mitigate lost revenue. Potential changes in revenue based on fee waivers that focused on member retention rather than profit were investigated. Additionally, changes to fees and other service cost effects were analyzed to determine the impact on various membership segments. The Model Anita semantic model was used to calculate data using data analysis expressions (DAX) queries over three months (April 1, 2024 – June 30, 2024) to generate detailed fee analyses, interest estimates, and an overview of membership value. The checking account fees, NSF fees, and membership benefits of 15 credit unions across the state were compared along with evaluating the Kasasa Model (cash-back checking) as options for CPM. Charging a fee for simple and essential checking accounts as a revenue safeguard against policy-level fee elimination was determined to be an effective option. Model Anita (along with Model Ralph and Model Shannon) was found to be effective for shaping CPM’s checking account policy to increase member retention and profit.