By Ted Bilke
“Big data” often has a reputation of being so large, varied and complex that it’s difficult to handle, stretching the limits of traditional relational database management systems. However, the ability to integrate and analyze disparate information and see the big picture can help gauge member needs and business trends. As a result, credit unions can proactively market personal services, improve cross sales and prepare for future demands.
Information in credit unions’ core processor and in third-party data stores including CRM, imaging and loan data offer a growing collection of details about member accounts and activity, services, products, risks and compliance. Embedded in this mine of information are key performance indicators and other valuable statistics that, examined in a clear and useful format, provides guidance in critical decision-making.
Tapping into this valuable data exercise has not been done sooner because we did not have the proper tools. Excel sheets and employee analysis could not begin to access the depths of data that today’s data analysis solutions reach. All credit unions should consider such software, if they have not invested in it already. Essential factors in the technology decision should include:
* A data warehouse that holds all information in a single location to avoid fragmentation, ensure consistency and reduce unnecessary burden on the core.
* The capacity to provide intelligent grouping of data stores, and to create reports with dependable, structured data showing meaningful relationships between the groups.
* The ability to automatically extract, transform and load information when moving from one data store to the main data warehouse.
* Prebuilt, out-of-the-box reports that track a variety of common business indicators.
* The ability to freeze moments in time, present high-level data aggregates and also drill down to specifics.
Credit unions don’t need to drown in data. Find a tool that makes it easier to put the pieces together and provide a comprehensive view of your enterprise and the benefits will prevail. Consider credit management easily evaluating annualized growth, weighted averages and a variety of segmentation group reports. Portfolio managers should have access to growth analysis by line of business, maturity reports, new business and closed business reports, as well as charge off and recovery reports. And, transaction reporting is useful to see teller-specific reports, ATM transaction reports and fee comparisons from period to period.
Of course, technology cannot do all the work. Credit union management teams must decide what the most valuable metrics are for their businesses. What exactly should be measured and how much detail is needed to meet your goals? How exactly will information be applied to marketing, compliance, operations and so on? Management must be certain that analytics are focused on actionable metrics, which enables them to tweak data and associated actions to deliver the maximum results. Data analytics prepares credit unions to move proactively and anticipate changes in their business environments.
In the face of an information deluge, credit unions can’t afford to use guesswork.
Ted Bilke is the president of Symitar. For info: www.symitar.com.