Big data is a big deal for credit unions.
Survival and relevance are at stake. And credit unions need to start moving forward on business intelligence efforts, according to series of speakers at the CUNA CFO Council Conference in Anaheim, Calif.
Six big data experts engaged conference attendees with rapid insights in a PechaKucha format.
PechaKucha, which means chit-chat in Japanese, is a six-minute and 40-second-presentation in which 20 slides are shown for 20 seconds each. The format keeps presentations to the point and allows multiple voices in quick succession.
The speakers included:
Credit unions can stay relevant using big data effectively and in the member's’ best interest, Best said. You have to put together the right team, travel light, and move fast.
Use big data to to make strategic decision such as where to close or open new branches and ATMs, Bedworth said. You can also use data to maximize your resources. One example: Using data to come up with a formula to allocate dividends to more effectively keep members.
Reporting, analysis, and automation are the three pillars of big data, added Schiffer. Reporting is great, he said, but you also have to roll up your sleeves and use analysis to “tease out the story” within the data.
From there, you have to make the data available as quickly as possible. And doing it by hand takes too long. That’s where automation comes in.
“There is a revolution going on whether we like it or not,” said Court. “Every major decision has to be infused with big data.”
Great insights are buried in all of the data credit unions hold. Analyzing this data will bring gems to the surface. “There is a huge among of opportunity,” Court said.
The big data journey is never done, said Wempe. The goal is to create a loop from consumer insights to profitable products to data-driven measuring and back again. “You can’t just stop.”
“Today, analytics at credit unions is very departmentalized,” said Ablack. Standardize and share data across departments and consider creating the role of vice president of enterprise analytics at your credit union to ensure data oversight.
Big data will only be as useful to credit unions as the effort put in. Furthermore, credit unions will likely need to pool their resources to tap the value of big data, potentially as credit union service organizations.