MADISON, Wis.–When historians look back on 2020, one person believes the first thing they will see are the “shocking disruptions to evolutionary patterns” in the markets and the broader society at large.
Credit unions haven’t been immune in their uncertainty over how to respond, as almost overnight the pace of change has accelerated in certain verticals, according to Shazia Manus, chief strategy and development officer with CUNA Mutual’s AdvantEdge Analytics.
“As a society and a culture we have recognized the notion that knowledge is power. We truly can bring forth transformative change,” said Manus during the first-ever virtual edition of the Underground Collision hosted by Mitchell, Stankovic & Associates. “The reality is knowledge and truth are always rooted in data.”
That includes not just member data, but data around COVID-19 and racial equality, she said.
“Take, for example, the data from the contact tracing. It’s been so powerful in helping to stop COVID-19’s spread, but we also see bogus information being used to steal from consumers,” she observed.
In financial services, Manus pointed to how data is being used to create personal relief programs, while at the same time data has been used by big banks to deny people Paycheck Protection Program loans and other relief.
“We have uncovered so many scenarios where we think it would be nice to know that data in real time,” Manus said. “In my opinion, the lack of data has been the leading handicap in (responding to the pandemic and to racial disparity).”
Three Use Cases
Manus offered what she called “three prudent use cases to advance analytics.”
- Digital Transformation. “I believe the industry should take a hard look at it in a real way. Thanks to the lockdown, we have segments of our membership exposed to a digital solution. Let’s go back and collect the data on their usage and experiences, and come up with an activation to really help them be engaged digitally. If they abandoned a process and called a call center, that is great information to have to know on what has to be redesigned.”
- Proactive Relief through Consultative Guidance. “Data can truly tell what’s just around the corner for segments of members. We can use local economic data and retail sales data to get a holistic picture of the member’s financial picture.”
- Enhance Existing DEI initiatives. “This cannot just be talk anymore. I truly believe the credit union industry can use data to truly assess where we have gaps.”
The Key Learning
“The key learning for me of last few months is disruption is never 100% predictable,” said Manus. “But we do know data can serve as the strong armor.”