TAMPA, Fla.–Credit unions generally fall into one of three buckets when it comes to their views on and usage of data analytics, according to a new survey.
The semi-annual Data Analytics Survey conducted by Best Innovation Group in conjunction with OnApproach is intended to help credit unions gain a deeper understanding of industry trends regarding data and digital strategies, according to the companies.
The original results of the 1st National Survey on Data Analytics and Decisioning Trends in the Credit Union Industry were published in early 2018 and the updated survey was open July and August of this year.
Among the key takeaways from the latest survey, according to the two organizations:
- One-third of credit unions responding have holistically embraced data as strategically important
- One-third are moving forward slowly on a more departmental or project-by-project basis
- One-third do not view data as important to their business strategy
“While more than 60% of respondents indicate that they have, or are implementing, data analytics products, 65% admit they have neither a roadmap nor a strategy regarding the use of data analytics in their organizations,” the companies said, adding the finding is a “troubling revelation” as it means organizations are investing in products with no clear path to value.
Kirk Kordeleski, senior managing partner and chief strategy officer at BIG Consulting, said he was pleased at how open the respondents were about the state of analytics in their organizations.
“BIG’s survey revealed that only 10% of credit unions believe they are on an equal playing field with their banking and Fintech competition regarding their all-important data strategy,” he said. “Ninety
percent are two or more years behind what they feel is the industry benchmark.”
According to BIG, Jeremey Sterner, VP-information technology at Heritage Valley FCU, added, “I would consider us a data aware organization. Data analytics is a major part of our strategic discussion. We recognize that we have reached a point where a data warehouse is a necessity. Continuing to build out our own solution does not make sense for us, anymore. We are in the beginning stages of developing a data analytics roadmap that will lay out our journey to become a data-driven organization.
“The biggest challenge for credit unions is that data analytics ROI can take time to realize,” Sterner continued. “Rather than just looking at the ROI, I look at the end game. It’s clear we
need to use our data to be competitive. The reality is it’s an evolving process, so there really isn’t a finish line. We just need to start.”
According to Best Innovation Group it is an innovation catalyst and strategic consulting partner focused on strengthening and growing credit unions. OnApproach is a provider of big data and analytics solutions for credit unions.