TAMPA, Fla.–Trellance and the Filene Research Institute said they have partnered to create the Credit Union Data Exchange (CUDX) and are seeking 100 credit unions to participate.
According to Trellance, the data exchange will allow credit unions to “reap the benefits” of a large, shared data pool.
“Credit unions need to join forces and share their data to compete with banks,” said Trellance CEO Tom Davis. “If we can get the 100 credit unions we need to get started, any credit union accessing the data exchange will be able to compete with even the largest of banks in terms of data resources.”
Trellance said that by sharing data with other credit unions they gain new benefits that can “deepen member insights and further serve their membership base.”
The Benefits
The CUSO said these benefits include:
- Better risk management. “Credit unions can use data to assess the risk of lending money to a particular borrower. By sharing data with other credit unions, they can access a wider pool of data to make more informed decisions about lending.”
- Improved efficiency. “Credit unions can use data to identify patterns and trends in member behavior, which can help them improve their operations and make better decisions about product offerings. Sharing data can help credit unions to access more data and insights, making them more efficient and effective.”
- Enhanced member experience. “By sharing data, credit unions can better understand their members’ needs and preferences. This can help credit unions to personalize their services, provide tailored recommendations and improve member satisfaction,” Trellance said.
- Increased fraud detection. “Sharing data can help credit unions to identify potential fraud cases by detecting patterns and anomalies in member activity.
- Competitive advantage. “Credit unions that share data can have a competitive advantage over those that don’t. By having access to more data, credit unions can make more informed decisions and improve their services, which can lead to increased member loyalty and growth,” according to Trellance.
Tremendous Opportunity
“This is a tremendous opportunity for credit unions,” said Filene’s president & CEO, Mark Meyer. “By leveraging a shared data set, credit unions can improve the accuracy and effectiveness of their data models. It also can be used to create broader insights around longitudinal topics like financial wellbeing.”
The organizations said Filene’s Fellow, Dr. Cheri Speier-Pero, who has led the Data Analytics Center of Excellence for the past three years, has been an advocate and champion for a shared data exchange.
“A shared data set will give CUs deeper insights to compete more effectively with the larger national banks and fintechs,” said Speier-Pero. “CUDX is a powerful way credit unions can put the research into action.”
Development & Service
CUDX will be developed and serviced by Trellance, with “deep expertise in managing an enterprise analytics platform at this scale,” the CUSO said.
“Each contributing credit union will integrate with and send their data through a secure connection to a data locker that only they control,” according to Trellance. “All files will be encrypted, and the encryption keys will be held by each participating credit union. This ingestion will be an automated process and what data is shared with who will be up to each individual participant.”
The organizations said credit unions will own and control CUDX through a familiar cooperative model, which will ensure that the exchange is always serving credit unions’ interests in a safe, controlled manner. The cooperative will have a board, advisory councils and participating members.
For more information and to apply, go here.
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