Credit unions can map the member journey using AI, says Hilary Reed, EmpowerFi.
As consumers evolve with advances in technology and computing power, credit unions must also evolve in how they collect and employ data to serve their members.
Artificial intelligence (AI) provides a powerful tool for leveraging that data, as outlined in a breakout session during the CUNA Marketing and Business Development Council Virtual Conference.
“AI works because computers are faster and smarter than humans at solving problems with a massive amount of data,” says Cory Albert, director at IntelliFi Powered by Faraday.
Some credit unions use data-driven “personas” created by AI to target members on their preferred digital channels. These personas deliver customized products to increase engagement among members.
Using “lookalike models,” for example, AI can predict which members are most likely to churn before they act, allowing the credit union to strengthen the relationship.
Credit unions can also map out member journeys with AI to better understand future opportunities for engagement and to improve empathy.
“If you know what members are going through in their journey, you can be much more empathetic,” says Hilary Reed, CEO/chief strategist of EmpowerFi.
“Although there are thousands of individual journeys members can take among products, there are clearly established trends that AI can identify,” Albert adds.
Reed provided examples of how credit unions have used AI to employ targeted campaigns to increase deposits and loans with targeted programs that identify members and nonmembers most likely to opt in for select products.
“This is also great for onboarding and reboarding, and automated platforms,” Reed says. “It shows the progression of products that identify the next best opportunity for cross-selling a product.”
What’s more, the AI models provide ongoing intelligence, Albert says.
“The models continue to grow and become more intelligent over time,” he says. “They get better over time and keep up with changes in the market. The algorithms allow credit unions to evolve as their member base changes.”
Credit Union Magazine’s Summer 2023 issue highlights the lending outlook for the rest of the year, how credit unions leverage fintech companies to boost digital lending, the power of lending partnerships, common Bank Secrecy Act violations, and the shift board members must make when becoming chair.
