unions, like all financial institutions, are deep in the era of digitization. There’s
been a key trend of moving traditional banking activities online, which
generates lots and lots of data. The
sum of this online financial activity creates a detailed picture of the behavioral
patterns of members.
unions are growing in their acknowledgement of the importance of leveraging
this data, but are falling behind other financial institutions in maximizing
the opportunities. According to a 2018 study by Best Innovation Group and
Trellance, 45 percent of credit unions don’t currently have a data and
analytics strategy in place, and those that do say it will take three to five
years to implement.
now, within your data are the answers to many pressing strategic questions:
- Which products and services do my
members truly want?
- What are our most valuable new
- How can we respond to market
- How can we identify and minimize
the biggest areas of risk?
how to dig deeply into your data to extract accurate insights seems complicated
and time-consuming, and many credit unions fear they don’t have the resources
or staff in place to manage the effort.
advances in computing power, artificial intelligence and machine learning mean
that credit unions can efficiently and affordably recreate the power of an
entire team of data scientists. Working with
an expert analytics CUSO can level the playing field, enabling credit unions of
all sizes to implement sophisticated, data-driven strategy quickly and without
the need for in-house experts.
right analytics tools in place, there are three high-impact strategies your
credit union can implement within a matter of months.
highly-targeted intelligent marketing campaigns
messages are constant, and everyone’s time is short. Personalized, relevant
offers are one of the best ways to capture members’ limited attention – and
show that you understand their needs.
marketing methods use demographic information as a primary means of
customization –but, that assumes that people of the same gender, geography or
age group all want the same things. The new era of data analytics allows for
hyper-personalized targeting based on product adoption, level of engagement and
life stages. This means the ability to efficiently
focus resources on higher quality efforts. Credit unions that use data-driven
marketing report deeper relationships, more effective cross-selling, and
stronger customer loyalty.
your next best products – for each member
Predictive analytics is an exciting area of data science that uses
sophisticated machine learning algorithms to make predictions about the future.
Predictive models are able to capture the hidden relationships among many
factors and assess the likelihood of a potential outcome.
Next Best Product predictive analytics models drill deep into individual member
behaviors to gain insights about which products and services are most likely to
be adopted. It’s the foundation upon which to build perfectly targeted
marketing offers that reach the right member at just the right time.
analytics “magic” that gives insights for increased wallet share can also tell
credit unions which members are in danger of leaving. This isn’t merely a
forecasting tool, but powerful, actionable data that provides the opportunity
for proactive outreach before it’s too late. Attrition models like the one offered by CU
Rise allow for targeted and specific re-engagement campaigns that significantly
reduce attrition rates and strengthen relationships with members.
credit unions embrace digitization, the more new opportunities for growth it provides.
Credit unions must actively participate in the digital transformation in order
to not just survive – but thrive – in the rapidly changing financial services
landscape. Leveraging the power of data and analytics is the logical next step.
Karan Bhalla is the CEO of CU Rise Analytics, a Virginia-based CUSO. CU Rise helps credit unions that want to focus their time and resources on the most advantageous strategies by fully leveraging the possibilities of data analytics and technology. Request a free, customized benchmarking report to see how your credit union’s performance compares against other financial institution’s at www.cu-rise.com/peer-benchmarking-report