By Michael Bryan
Increased competition, emerging CECL standards, and shifting member demographics are making it more difficult to win.
I’ve helped many organizations tackle transformational change. Through these experiences, I’ve found the surest way to drive success is to leverage data to build a working knowledge of consumers so you can consistently give them exactly what they need (even if they don’t know) in order to continue enhancing relationships and growing business.
Here’s the data you’ll need to get there:
Enterprise Data
Enterprise data represents the transaction details in all of your credit union’s systems. The benefits include:
- Unlock transaction details across all your systems to identify most profitable members, flag at-risk members, and uncover new revenue and pricing opportunities.
- Decrease time and costs of systems that don’t “talk” to one another by creating a single, enterprise-wide data language.
Examples include data from core, loan origination and collections.
Consider this scenario: Jane Doe is an active user of her credit card and has an auto loan with add-on products through your credit union. You also see that she makes her credit card and loan payments on time every month. Insights empowered you to send Jane a targeted “VIP” offer for a fee-based, rewards card, she signs up for and begins using right away.
Engagement Data
Engagement data represents interaction, transaction, and engagement data across member touchpoints. Among the benefits of engagement data are:
- Identify patterns in member behaviors across channels to understand member interaction and service habits, predict outcomes, and decrease risk.
- Uncover opportunities to optimize user experiences across all devices and touch points.
Examples of engagement data include call center, chat, email, mobile app, website, and social media interactions
Consider this scenario: John Doe asks about payment extensions and late payment penalties more than once. From this information you conclude that John might miss one or more future loan payments and is worth outreach.
Partner Data
Partner data represents members’ payment, transaction, claims, and purchase histories from providers. The benefits include:
- Access a larger pool of data to gain a deeper, more comprehensive view of member needs and business challenges.
- Leverage identified areas of risk and reward to strengthen member relationships through more personalized sales and servicing.
Among the examples of partner data are core processors, insurance claims and direct response.
Consider this example: Johnnie Roe submitted an online application for a loan that contains some suspicious information. Through access to third-party records you uncover he’s been flagged as a fraud risk more than once. You deny Johnnie’s loan request.
Collaborative Data
Collaborative data represents industry-level benchmark reports, analytics, and insights accessible through a collaborative data environment. The benefits include:
- Harness the same level of data as big banks, Fintech, and large retailers (i.e. Amazon and PayPal)
- Enhance member interactions, reduce costs, improve operations, and automate transactions via insights shared by other credit unions.
Examples of collaborative data include compliance, risk analysis, and member segmentation.
As an example, your credit union leverages Allied and OnApproach’s M360 platform to access data models and analytics that pool from industry-wide data. Through the platform, you gain new insights on members’ buying habits to increase Profitable membership 15%.
If you want to be the Amazon of your market, you should start by taking this approach to compiling and leveraging data.
Michael Bryan is vice president of digital strategywith Allied Solutions.