Embrace Real-Time Data, Multiple Channels for Lending Success
By Jim Jerving
CUs have more information than most businesses, but they often fail to capitalize on it.
Data analysis is essential to many businesses, but it often focuses on a single purpose.
Credit bureaus, for instance, collect credit data to report creditworthiness. Retailers use sales data to facilitate purchasing and merchandising decisions.
Credit unions have an advantage in that they have more information than other retailers, but they often fail to use that advantage. Best points to loan applications as antiquated and burdensome as an example.
“We already have most of the data we need,” he says. “So why do we make members fill out a form that includes their name, address, Social Security number and other data we already have?”
Wescom leverages numerous sources of data to support growth and member engagement, including:
- Transaction history—credit and debit card use, sales volume, merchant data, and direct deposits.
- Non-Wescom financial institution relationships—checking, savings, loans, credit cards, and payment history.
- Bill pay—payment amount and history.
- Insurance and investment data in Wescom subsidiaries.
- Credit bureau—credit scores, delinquency data, and other obligations.