By Shazia Manus
At one point in history, soothsayers had the future-telling market cornered. Over time, however, it became clear there was a big problem with the product. While soothsayers could tell the future, they were rarely right.
Today’s soothsayer is a data scientist working in concert with a machine, or more specifically, an Artificial Intelligence (AI)- and analytics-powered engine that not only predicts the future, but does so with great accuracy, speed and repetition.
As AI use cases begin to proliferate, leaders across industries see the potential of the technology to improve their business in myriad ways. A recent Forbes Insights survey of 300-plus executives found 86% agreed companies will face “a significant disadvantage” in the next five to 10 years if they play wait-and-see on AI.
Humans and machines working together is how financial services will evolve to meet the shifting demands of today’s consumers. Together, they will help credit unions see ahead, understand precisely what a member needs and deliver it flawlessly, in real-time. It will happen as those same members experience the life-improving benefits of predictive analytics throughout their days. Navigation systems will reroute based on expected traffic delays; thermostats will adjust to maintain comfort during predicted heat waves; web browsers will deliver content anticipated to be most exciting to the reader.
The Future is Here
In many ways, that “future” is already here. As AI-enabled powers of prediction improve exponentially, the technology becomes democratized. In other words, incredibly advanced machines, algorithms and models, once available only to NASA engineers, are coming down from the untouchable realm of outer space and into the cloud. Because more brands have the capability of integrating advanced technology into their solutions, consumers expect others, including their credit union, to follow suit.
Given the rapidly expanding expectations of the digital financial consumer, it’s clear the time to strengthen our predictive muscle is now. Data will play a massive role in the achievement of this ambition. Think of data as the fuel that powers the predictive engine. About 61% of companies with an innovation strategy are using AI to identify opportunities in datathat they would have otherwise missed.
The good news is every credit union has data. In fact, every credit union has massivedata. The bad news is not every credit union can mine it and refine it. Nor can every credit union inject that data fuel into the right engine to get the results they need for member love and loyalty in the digital era.
'Fragmented' Doesn't Do It Justice
It’s no wonder––each of today’s 5,800 credit unions is composed of 10 or more systems. Every one of those systems is offered to the industry by 10 to 15 different providers, each offering unique levels of customization to the credit unions in their portfolios. “Fragmented data ecosystem” doesn’t even begin to describe the challenges facing our industry.
Fortunately, not every credit union will need to solve this problem alone. The collaborative model that makes the movement special is also what makes it poised to thrive. By collectively approaching digital transformation (and data analytics to accelerate it), we will more quickly and more efficiently give credit union members what they crave. That is the vision driving our team.
Successful data strategy begins with the adoption of a core problem or key opportunity the credit union wants to solve. Sit down with your teams and get a strategic level set.
What are the problems your members confront in their day-to-day financial lives?
How can you leverage the predictive powers of AI, data analytics and human ingenuity to see around the corner for them, solving those problems before they even arise?
What Members Want
Credit union members already want end-to-end experiences they can access through the latest digital channels. Very soon, they will demandthem. There’s plenty of talk about the need to “do digital,” and those conversations are important. Just as important, however, is the need to “do data.” In fact, digital and data are two sides the same coin.
It doesn’t take a soothsayer to see possessing that coin will be the secret to thriving in the digital age.
Shazia Manus is Chief Strategy & Business Development Officer for AdvantEdge Analytics – CUNA Mutual Group’s data analytics technology and services business. In this role, Shazia applies a futurist view to the field of analytics, helping AdvantEdge Analytics and its credit union clients discover new possibilities for exceptional member experiences. Contact her at Shazia.Manus@cunamutual.com.