Members' data should drive strategy at your credit union, according to John Best, CEO of Best Innovation Group.
“You’ve got to trust the data,” he says.
To take full advantage of that data, Best says credit unions must:
1. Challenge conventional wisdom. Revisit the beliefs you hold true, including that:
“This is conventional wisdom that I’m sure you hear every day,” Best says. “Things are changing. We never take anything off the table. We’re too nice.”
2. Create a data-driven culture. Assumptions won't move your credit union forward, Best says. Challenge people to back up their statements with data.
3. Measure strategies. Use data to improve processes at your credit union. Credit unions should not be afraid to fail.
“Failure is a symptom of two things: trying and innovation,” Best says. “When we don’t try things, we fall behind.”
4. Be predictive. Use data to try to predict member behavior or find answers to your biggest problems.
While credit unions' use of data analytics is still somewhat in its infant stage, Best says credit unions need to recognize the important role it has in determining results.
He likens data analytics to the introduction of the ATM, which credit unions didn’t initially know how to categorize (i.e., loans or payments).
“You will have a chief analytics officer someday,” he says. “We must recognize disciplines sooner rather than later, and give them a seat at the table.”
Best addressed the 2018 CUNA HR & Organizational Development Council Conference in Fort Lauderdale, Fla.
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