The University Credit Union operates in a small university town in the Midwestern United States. The town, with a population of 125,000 persons, has recently been rated a top-10 place to retire because of the extent of the cultural, education, and medical resources available. Students and retirees are two of the largest segments of the town’s population (20% each).
The UCU focuses on personalized service to differentiate itself. It is also heavily involved in community activities, and it expects employees to be active in civic causes. The UCU offers slightly below-market interest rates on deposits, but charges competitive rates on loans. The bank offers a full range of banking services such as safe deposit boxes and credit cards. The bank has excellent relations with local realtors and other service providers, and as a result, the bank processes the largest number of mortgages for first-time home buyers. Not surprisingly, it offers a limited range of “exotic” products such as foreign exchange conversions and letters of credit.

In recent years, UCU has encountered increasing competition. Initially, its competition consisted primarily of other local banks that also emphasized a personalized service. However, with deregulation, large national banks such as Wells Fargo and Citibank have also established branches in the community. In addition, the growth of the Internet has increased consumers’ awareness of their choice set for banking services, mortgages, and so on.

Required:
Construct a balanced scorecard for UCU. Begin by identifying the critical success factors for UCU. Then, identify three to four measures for each CSF. Finally, organize select measures into logical groups that reflect UCU’s strategy.