Please Wait a Moment
X

Blog

21Jun

The State Of The Credit Union: Analytics Adoption – Part I

Large banks, Regionals, and fintechs continue to invest heavily in data management, analytics and decisioning. 

06_Jun_Week_2_Analytics_Adoption_Pt_I_IB_Blog

They have devised strategies, revised their staffing models, implemented infrastructure, and are deploying analytical applications to maximize use of data throughout all aspects of their business. Increasingly, these data-driven institutions are growing market share, lowering operating costs and improving customer service through new analytical insights. Credit unions that have not articulated a strategy and begun to act upon it are likely falling further behind the curve.

In December 2017, industry experts Best Innovation Group (BIG) and OnApproach polled 85 credit unions from across the country to determine the state of data analytics and digital transformation within the movement. The National Survey on Credit Union Data Analytics and Decisioning Trends examined the adoption rates of analytics, priorities, budgets, implementation timelines and associated challenges. It revealed that, even though two-thirds of the credit unions surveyed have invested in some type of analytics tools in the past 12 months, nearly half (45%) of all respondent institutions do not have a data strategy in place.

Credit unions that have established a data strategy report two principal goals: boost marketing/segmentation to attract new members and expand existing relationships, and improve member service. Survey participants also gave priority to loan decisioning and operations efficiency.

In 2017, Credit union analytics budgets were focused primarily on building fundamental skills and implementing foundational technology to enhance their use of data. Advanced functions such as predictive analytics and decisioning (e.g., machine learning, artificial intelligence), fraud detection and risk assessment realized markedly lower budgeting and spend – further indication that analytics implementation is in the early stages for many credit unions - while competitors continue to move ahead.

Survey respondents indicate they are taking steps to move in the right direction, however. They are applying initial analytics investments to drive growth (marketing), generate income (lending) and lower expenses (operational efficiencies)— critical requirements in the highly competitive financial services market.

The national survey, to be conducted on a semi-annual basis, provides interesting insights into how credit union data strategies compare. While most survey participants are just getting started, many credit unions, including Information Builders’ customers, are making bigger leaps forward in digital transformation. Spokane Teachers Credit Union (STCU), State Employees’ Credit Union (SECU) and ESL Federal Credit Union are just a few of the institutions tapping the power of the WebFOCUS and iWay platforms to create actionable analytics that enable them to operationalize and monetize their data, and drive strategic change.

Next week, in Part II of this series, we’ll reveal credit union 2018 analytics spending plans, associated timelines and the common implementation hurdles impacting the rate of adoption.

About the Author

Related

3 Ways Credit Unions Can Influence Debit And Credit Card Interchange Revenue

While optimizing value for clients is the primary focus of credit unions, financial survival also re...

Read More >
Extraordinary Performance is Defined by a Strategic Center of Gravity

Extraordinary Performance is Defined by a Strategic Center of Gravity

The time for credit unions is NOW! You can dominate markets and grow by over 13% a year! Yes, that’...

Read More >

Great CU Client Service Takes More Than A Smile

Great client service is at the heart of every good business relationship, and credit unions depend a...

Read More >

Who Do You Trust? Would Your Credit Union Members Say It Is You?

Be it in our personal or professional lives, relationships are built on trust. Although services and...

Read More >

Artificial Intelligence, Banking, And The Customer

At a conference a couple weeks ago someone asked me what the number one most important upcoming tech...

Read More >

2018 AXFI Conference: Big Ideas, Big Data, And Big Fun

There’s a reason that in just five short years the AXFI Conference has grown from less than 50 atte...

Read More >

About Us

Best Innovation Group, Inc is a technology innovation and development company catering to the financial industry. We invite you to join the hundreds of financial institutions that have already worked with our team of experts in designing technology solutions to fit their growing needs.

Contact Us

Toll Free: 877.244.4964
Office: 813.377.4963
Fax: 813.425.2390

Subscribe To Our Mailer