Most businesses, including community financial institutions (FIs), are still abuzz with talk of big data. Many of them have even taken the next step and begun to utilize that data. In fact, a recent survey revealed 63 percent of Fortune 1000 firms had big data in production in 2015.

For credit card-issuing FIs, there is a sea of data readily available. Online banking provides data with every login, click or download. Consumer spending habits and payment histories provide trends that can be leveraged in the future. Even consumer demographics and industry trends can assist with account acquisition and retention strategies.

Before diving into the deep end, however, FIs should identify which problems they’re hoping to solve with data. FIs looking to improve their credit card portfolios can leverage data to do the following, for example:

1. Make their cards top-of-wallet: Information about cardholders’ current balances, payment histories and average transactions can help FIs spot trends and create strategies to increase card usage. FIs can then target specific cardholder segments through customized campaigns, such as special APRs, balance consolidations and convenience checks.

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