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."
Once the Financial Crimes Enforcement Network’s new customer due diligence rule becomes effective May 11, 2018, credit unions will be required to identify and verify the beneficial owners of business-type accounts.
CUNA continued its efforts for clarifications, including asking for credit card guidance, on the changes to the Military Lending Act Thursday. Many changes became effective last October, and credit card provisions will take effect Oct. 3.
The 2017 CUNA GAC kicks off Feb. 26, registration starts Sunday and leads into that evening’s ED (Filene) Talk, and continues Monday with the kickoff of the general session and a number of breakout sessions.