CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » A new identity for today’s CFO
Subscribers

A new identity for today’s CFO

CFOs add significant value to strategic thinking and problem-solving in the organization.

May 8, 2019
Patrick Totty
No Comments
Shari Weber
Shari Weber, CFO, Honor Credit Union

Today’s chief financial officer (CFO) is vastly different from her counterpart 25 years ago.

Whereas the latter CFO would have spent her days solely on financial statements and the bottom line, today’s CFO also has a more strategic focus.

That means contemporary CFOs need a wider range of skills—both personal and professional—that are far beyond simply an accountant's role, says Deedee Myers, CEO of DDJ Myers, a consultancy firm that assists credit unions with executive recruitment and retention, and strategic planning. 

"CFOs need to be leaders, financial gurus, employee developers, and 'board savvy' presenters of complicated information so the board of directors can lean in and understand," Myers says.

CFOs also must establish strong cross-functional relationships with other departments because they are “compelling peers who help others understand the significance of their roles and impact on financials," Myers says.

This also includes demonstrating the profitability of products and services, and encouraging innovative thinking and problem-solving.

"Today's CFOs add significant value to strategic thinking and sense-making in the organization,” Myers says. “The goal is to provide the best value to members while sustaining the credit union’s productivity and growth."

Steve Arbaugh

‘CFOs are now involved in so many aspects of the organization, they can't afford to be shy or reticent.’

Steve Arbaugh

What’s behind the change?

Myers attributes this shift in roles to the recession, when many boards began promoting CFOs to the CEO role.

“They were looking for fiduciary safety and financial management to help them through tough times," she says.

"They were relying on CFOs' financial acumen," Myers continues, "including understanding balance sheets and knowing the interrelationship between investments, loans, and liquidity. Credit unions needed the ongoing monitoring and fine-tuning CFOs offered."

Another factor is increasing regulatory pressure.

"A lot of regulatory stuff comes at us,” says Shari Weber, CFO at $934 million asset Honor Credit Union in Berrien Springs, Mich., and member of the CUNA Finance Council Executive Committee. “Having only a bookkeeping background prevents CFOs from thinking strategically on how to satisfy regulators' expectations. You can't get stuck in just the numbers."

Plus, increased regulatory pressures accelerate earning pressures, says Steve Arbaugh, CFO at $3.6 billion asset SECU in Linthicum, Md., and chair of the CUNA Finance Council Executive Committee.

“The cost of digital infrastructure is high and has forced CFOs to look through every part of their organizations to find ways to improve the bottom line,” he says. "People used to stereotype CFOs as introverted and intensely focused on accounting. But that has all changed. My CEO jokingly laments, ’Why did I get a CFO with an outgoing personality?’"

That question is being answered throughout the credit union industry. Because credit union CFOs are now involved in so many aspects of the organization, they can't afford to be shy or reticent when it comes to chairing meetings or addressing the organization, Arbaugh continues.

“I'm involved with every part of SECU's business,” he says, “and that requires an outgoing person."

Other factors at work

Myers says two other forces have created a need for strategy-minded CFOs:

1. External competition has created shifting perspectives. The market now demands CFOs to be savvy in areas of enterprise risk and external market forces.

“CFOs need a broader, richer set of leadership competence and capabilities,” Myers says.

2. Boards don’t want surprises. To avoid this, high-performing boards ask high-level questions that are “far beyond trivial oversight queries,” Myers says.

These strategic questions concern future opportunities and how today’s decisions and actions affect future outcomes.

Arbaugh echoes Myers' observations about boards. " My CEO gave me some great advice when I came to SECU: 'The board does not like surprises.'"

KEYWORDS finance

Post a comment to this article

Report Abusive Comment

Credit Union Magazine: Winter 2022

Winter 2022

Credit Union Magazine’s Winter 2022 issue highlights data-driven marketing, the board’s role in cybersecurity, elder abuse scams, credit unions’ auto lending advantage, and more.
Digital Edition •  Subscribe

Trending

  • House passes CUNA, League-led board modernization bill

  • CFPB issues CUNA-opposed proposal on credit card late fees

  • Key committee leaders supportive of credit union priorities

Tweets by CUNA_News

Polls

Vote for the 2023 CU Hero of the Year

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us