Data analytics hold great opportunities for credit union growth
ACUC attendees learn how data can build membership, manage risk, and strengthen the member experience
MADISON, WI (June 28, 2017) — The sheer volume of consumer data opens up great opportunities for credit unions to grow and strengthen member relationships, said CUNA Mutual AdvantEdge Analytics’ President Tim Peterson. CUNA Mutual AdvantEdge Analytics is the new data and analytics technology and services business created to help credit unions deliver a better member experience through actionable data insights. Peterson presented on the power of data analytics and what credit unions can do to embrace data strategies at CUNA’s America’s Credit Union Conference breakout session Wednesday.
“Data is rising at an incredible pace, covering all aspects of a consumer’s life. In the past two years, more data has been created than in the entire previous history of the human race,” said Peterson. “Within five years, there could be almost 50 billion smart connected devices in the world, all developed to collect, analyze, and share data.”
While access to all of this consumer data opens up opportunities for credit unions, it also presents challenges as they look to use data to grow and strengthen member relationships. Peterson explained consumers expect simple and instantaneous service, making an omnichannel member experience imperative for credit unions to embrace. “It is more than mining data for cross-sell opportunities; it is about building the right data insights to bring the right value at the right time to that member,” said Peterson.
Peterson outlined three major opportunity areas that credit unions can embrace by leveraging data analytics. These areas include boosting traditional revenue levers, developing new growth areas, and delivering a better digital experience.
Through several examples, Peterson illustrated how data insights can deliver real value for credit unions. For example, by identifying characteristics of high loyalty and high lifetime value members and applying these data points to indirect members, a credit union can build measurable opportunities to strengthen these inactive relationships.
Peterson said even though, as an industry, credit unions are beginning their journey on the analytics maturity spectrum, that isn’t an indication that data is not a priority for credit unions. According to an AdvantEdge Analytics survey report, almost 75 percent of credit unions see data analytics as a way to transform the way they do business.
While less than 10 percent of credit unions have a comprehensive, multi-year roadmap established, Peterson indicated our industry has the strength and investment partners to collaborate and accelerate credit unions’ ability to scale and expand data capabilities.
“Data analytics and insights are essential capabilities for credit unions to strengthen the member experience and expand future growth opportunities,” concluded Peterson. “As we build out our data analytics acumen together as an industry, we can build and expand these insights to facilitate industry-wide collaboration to benefit the overall credit union system for the long term.”
For more information, please visit www.cunamutual.com/AdvantEdge.
About TruStage
TruStage is a financially strong insurance, investment and technology provider, built on the philosophy of people helping people. We believe a brighter financial future should be accessible to everyone, and our products and solutions help people confidently make financial decisions that work for them at every stage of life. With a culture rooted and focused on creating a more equitable society and financial system, we are deeply committed to giving back to our communities to improve the lives of those we serve. For more information, visit www.trustage.com.
About CUNA Mutual AdvantEdge Analytics, LLC
CUNA Mutual AdvantEdge Analytics, LLC (AdvantEdge Analytics) provides comprehensive data analytics services for credit unions. AdvantEdge Analytics brings together data management, reporting and performance management, and advanced analytics into one complete offering. Our trusted consultants collaborate with our customers to effectively harness the power of data in new and insightful ways. Additional information about the AdvantEdge Analytics can be found at www.cunamutual.com/AdvantEdge.
