LAS VEGAS (5/6/14)--Credit unions are "swimming in data" that they can transform into insight to improve their bottom lines, consultant Karlo Rodriguez told a Credit Union National Association Payments Roundtable audience Monday in Las Vegas.
|Data-management consultant Karlo Rodriguez tells attendees at the Credit Union National Association Payments Roundtable that credit unions need to differentiate between valuable big data and clutter. (CUNA photo)|
Credit unions' core processing systems contain the depth and breadth of information that can be used to solve problems and create new opportunities, Rodriguez said.
Among the data sets Rodriquez said credit unions have access to:
Most financial institutions hamstring themselves by failing to take the initiative to identify goals or problems that this kind of data can be used to solve, 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."
Among the areas where such "problems" can be solved are:
For example, a credit union with a low penetration of checking accounts can identify characteristics of account holders who more actively use their checking accounts, and market to similar members.
A credit union that seeks to improve member retention can identify signals that point to members who are most likely to close their accounts within a year and reach out to them with more enticing product offers.
Rodriguez suggested a good place for credit unions to begin data analysis is with transactional data. "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."