The sheer volume of consumer data opens up great opportunities for credit unions to grow and strengthen member relationships, say CUNA Mutual AdvantEdge Analytics’ President Tim Peterson.
Peterson addressed the power of data analytics and what credit unions can do to embrace data strategies at a CUNA’s America’s Credit Union Conference breakout session Wednesday.
“Data is rising at an incredible pace, covering all aspects of a consumer’s life," he says. "In the past two years, more data has been created than in the entire previous history of the human race. Within five years, there could be almost 50 billion smart connected devices in the world, all developed to collect, analyze, and share data.”
While access to this consumer data opens up opportunities for credit unions, it also presents challenges as they look to use data to grow and strengthen member relationships.
Consumers expect simple and instantaneous service, making an omnichannel member experience imperative for credit unions to embrace. “It is more than mining data for cross-sell opportunities; it is about building the right data insights to bring the right value at the right time to that member,” Peterson says.
He outlined three major opportunities credit unions can embrace by leveraging data analytics: boosting traditional revenues, developing new growth areas, and delivering a better digital experience.
Through several examples, Peterson illustrated how data insights can deliver real value for credit unions. For example, by identifying characteristics of high-loyalty and high-lifetime-value members and applying these data points to indirect members, a credit union can build measurable opportunities to strengthen inactive relationships.
Data analysis is becoming a bigger priority for credit unions. Almost 75% of credit unions see data analytics as a way to transform how they do business, according to an AdvantEdge Analytics survey report.
While less than 10% of credit unions have a comprehensive, multi-year roadmap for data analytics, Peterson says our industry has the strength and investment partners to collaborate and accelerate credit unions’ ability to scale and expand data capabilities.
“Data analytics and insights are essential capabilities for credit unions to strengthen the member experience and expand future growth opportunities,” Peterson says. “As we build out our data analytics acumen together as an industry, we can build and expand these insights to facilitate industry-wide collaboration to benefit the overall credit union system for the long term.”