Unearthing Hidden Treasure – How credit unions can get more value from data they already have

BY DWAYNE SPRADLIN

Think your credit union has to search far and wide to uncover the big data troves that banks enjoy? Turns out such treasure chests may be buried right under your CU’s nose. Keep reading for tips on how to dig up a data goldmine and reap its many rewards.  

HOW TO MAKE THE BEST USE OF DATA

For credit unions, trendy ideas like “big data” may seem to belong to a faraway realm, accessible only to the fabled giants of the banking world. But credit unions may be overlooking some true treasure: buried in their core banking systems is a wealth of information that they can access and analyze fairly easily. Most credit unions, in fact, aren’t necessarily making the best use of this data, which could prove to be a goldmine for improving marketing strategies, increasing non-interest income and generally boosting the bottom line.

To reap these rewards, however, credit unions do need to put in place the right resources – by either investing in internal capabilities or outsourcing to external providers. This article will examine the kinds of data credit unions can better use, the types of analysis they can conduct, how credit unions can best leverage their data and analysis, and practical steps they can take to ensure they do.

KNOW YOUR MEMBERS

The most important nugget embedded in the banking core is, of course, the member account data. This intelligence includes information on the members themselves, the products and services they use, and the value the institution derives from them.

The most basic information would include the age and gender of each accountholder, cardholder or loan recipient, which allow for division of the member base into demographic groups. In addition, the core has individual and household income and credit rating data, which can contribute to further groupings.


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