LAS VEGAS–Another expert is noting that the sheer volume of member data CUs possess provides the industry with a significant opportunity to grow and deepen relationships.
CUNA Mutual AdvantEdge Analytics’ President Tim Peterson emphasized that point during CUNA’s America’s Credit Union Conference here, addressing what credit unions can do to embrace data strategies.
CUNA Mutual AdvantEdge Analytics is the company’s new data and analytics technology and services business created to help credit unions deliver a better member experience through actionable data insights.
“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, noted Peterson. He explained that 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% of credit unions see data analytics as a way to transform the way they do business.
While less than 10% of credit unions have a comprehensive, multi-year roadmap established, Peterson indicated CUs have the strength and investment partners to collaborate and accelerate their 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.”