Credit unions are "swimming in data" that can solve problems, create new opportunties, and improve the bottom line, consultant Karlo Rodriguez told the CUNA Payments Roundtable audience Monday in Las Vegas.
Rodriguez said credit unions' core processing systems contain usable information such as:
Historical transaction records;
Credit and debit card usage; and
Insight on member insurance and investments.
Most financial institutions, however, fail to use the data to identify goals or address problems, Rodriguez said.
"Every credit union has a problem to solve," Rodriguez said. "You might need to make more loans, or you might have a problem with member retention. All of these issues are tied to member data."
Credit unions can use member data to solve problems related to:
Financial product design;
Member retention; and
For example, a credit union with a low penetration of checking accounts can identify characteristics of active account holders and market to similar members.
Or, a credit union seeking to improve member retention can identify signals that point to members most likely to close accounts within a year and reach out to them with more enticing product offers.
Transactional data, Rodriguez said, is a good place for credit unions to start with data alaysis.
"Remember, you have your members' financial history," he said. "It is that data that so many retailers would love to have. Use it to your advantage."
CUNA President/CEO Jim Nussle said Thursday that the field-of-membership rule changes proposed by the National Credit Union Administration at its open board meeting will provide greater choice for consumers, as well as flexibility for credit unions to better serve their communities.
Human trafficking, money laundering, trade-based money laundering and terrorist financing all come with their own sets of red flags for financial institutions. In addition, entities such as money services businesses and cash-intensive businesses can be legitimate, but also have potential to be used for illicit activities.