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DATA ANALYTICS: Two Forces Behind Credit Union Success: Data Analytics & Personal Relationships

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BY STEVEN D. SIMPSON

In today’s data-driven world, there is more possibility than ever for credit unions to leverage the personal relationships with members that have always given them an edge over mega banks. And harnessing their data via advanced analytics can provide CUs with the deep membership understanding they need to enrich such relationships.

It is a good time to be a credit union. In the last year, credit union membership grew by 2.9 percent, adding 2.85 million new members. It was the largest increase in more than 25 years.(1) Making the depositor happy with exceptional member service and competitive rates gives credit unions a major competitive advantage over mega banks. But now there is an even greater opportunity to shine in a crowded marketplace.
Today, in the midst of a data-driven environment, credit unions have a huge advantage over other financial institutions: personal relationships. Using advanced data analytics coupled with a strong community focus and deep member relationships, credit unions have the power to better understand and respond to member needs by offering more tailored products and services across different channels. Credit unions that harness the value of their data are gaining a deeper understanding of their membership’s vital trends and purchasing influences and behavior. This newfound knowledge is leading to improved financial performance, reduced risk, enriched relationships and greater member loyalty.

Shifting Gears
A recent study from Celent found that up to 40 percent of bank executives interviewed desired to be data driven.(2) For those institutions eager to explore the benefits, 69 percent believe data analytics can improve sales results and customer relationships. In a recent American Banker survey, 36 percent of bank executives said they were looking to sign new contracts with providers of analytics services.(3) It is clear that financial institutions see the tremendous value and the competitive advantage the right advanced analytics program offers.
Is your credit union ready to leverage data analytics?

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