Credit unions collect and maintain vast amounts of data—valuable information that can provide a competitive advantage.
But how can your credit union use it? Predictive analytics—an in-depth analysis of existing member behavior—can help your credit union efficiently cross-sell products and services. This usually leads to higher profitability per member and stronger member relationships, and helps credit unions cross-sell the right products at the right time.
Predictive analytics also can help credit unions reward member loyalty and retain more members. For example, by frequently reviewing a member’s past service use and other behavior patterns, predictive models can determine the likelihood of a member canceling a service in the near future. Intervention with special targeted offers can increase the chance of member retention.
Proactive webchat is another application of this strategy. For example, a consumer applying for a loan online might see a webchat window open to recommend the best loan product for the individual at that particular time.
Some say cloud computing is merely a new term for application service provider (ASP), software as a service (SaaS), or outsourcing. But used to its fullest, the “cloud” might fundamentally alter how information technology (IT) departments function.
Some predict the cloud will provide a full suite of technologies—almost in real time and on-demand—operating like a utility, similar to electricity.
Many credit unions are now moving away from physical servers, workstations, storage, and applications to virtual versions—both in-house and through the Internet.
This means credit unions must:
The list goes on. But once you go to the cloud, use the newly recovered time and creativity to apply technology toward solving front-office challenges and taking advantage of competitive opportunities.