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."
Six federal agencies published guidance last week designed to ensure all depository institutions are aware of expectations when it comes to deposit reconciliation. CUNA’s compliance explains what it means for credit unions in a recent CompBlog post.
CUNA is concerned with a report on consumer testing used by the CFPB to analyze periodic statement forms for consumers in bankruptcy, but concurs with some of its findings. The bureau issued a report in February on its study.