MADISON, Wis.–Credit unions are underutilizing the power of their data in transforming the way they do business, according to a new report from the Filene Research Institute.
The upside according to the report: there remains significant opportunity for CUs to tap data analytics.
According to the report, “The State of Data Technology in Credit Unions: The Sink-or-Swim Crossroad Ahead,” those opportunities can be found in:
- Actionable data. Transactional, current data from a wider range of sources, including outside the organization, present significant opportunities.
- Member scorecard. While many organizations have a good understanding of some member metrics, many reported feeling they do not have a good 360-degree view of their members’ impact on the organization. A complete member scorecard that integrates member acquisition, retention, monetization and referrals would improve decision making.
- Predictive analytics. Predictive analytics based on a wide range of data could provide the data necessary to bridge the gap between the ever-changing needs of the member and the credit union’s understanding of their members’ current need.
- Multichannel relationship management. Leading credit unions may consider moving toward a relationship management model that uses a wide range of data (including transactional data) and predictive analytics and facilitates interactions with all channels (including mobile).
- Simpler banking enterprise ecosystem. There is a clear need for a simpler enterprise platform that has a far lower cost of operation and that permits seamless integration with modern analytics tools. Besides traditional data there is a richer (and far more voluminous) source of data originating from user interactions on mobile devices and web applications. These user-activity logs are a goldmine of information that can allow credit unions to better understand their members and their present frame of mind.
For more info: www.filene.org