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Customer-Centric Data Driving Growth for Credit Unions

Posted by Datasource on Jun 2, 2016 9:29:41 AM

Why you need a modernized data warehouse and BI environment and what it looks like

Most credit unions grew up in an era where custom-built data environments reigned supreme. Excel, SQL, and Microsoft Access were the workhorses of the data warehouse. Everything from member data to transaction data were tracked across multiple applications and spreadsheets. What started out as a solution for data to a handful of users was expanded and layered upon overtime, becoming unwieldy and inefficient  

Today, most credit unions are still relying on these legacy systems, and they’re feeling the hurt. Credit unions are under significant pressure from millennials and others to provide excellent customer service and introduce innovative financial products on mobile platforms. Technology, convenience, and speed are the lifeblood of this group.

Not only that, credit unions are also competing with non-traditional banks more than ever. In fact, according to the Millennial Disruption Index (MDI)− a study by Viacom Media− 73% of millennials surveyed would rather handle their financial services needs with Google, Amazon, Apple, PayPal or Square than from their own nationwide bank. While it’s good news that these groups want an alternative to national bank chains, credit unions must also navigate this environment while thwarting security threats and staying compliant with ever-increasing data governance mandates!

How customer-centric data is driving growth for credit unions

Customer-centric data drives growth

Navigating this dynamic environment is tricky. But, the best and brightest credit unions are more than up to the challenge. We know that credit union employees are some of the smartest and most dedicated folks out there. And, they have a singular and dedicated focus to serve members. They identify members’ underlying needs for financial services—and deliver the products and services to achieve the best possible financial outcomes. To gain a competitive advantage, credit union executive teams are equipping employees with the right mix of high-quality BI tools and analytics, coaching, and technology to support success and member happiness.

  • A BI revolution-To get there, top credit unions are shifting the way they aggregate, share and access data with a modernized data warehouse and business intelligence (BI) environment. Customer-centric data, including KPIs/data dashboards− powered by a modern data warehouse system− empower credit unions to better anticipate members’ needs, prevent attrition and build more meaningful relationships.
  • Opportunity knocks! The time is right for midmarket organizations, like most credit unions, to renovate their DW and BI environments. Legacy credit union niche tools and Microsoft freebies are no longer the only options for data integration and BI software. Enterprise software solutions have been scaled to fit the needs and price point of the midmarket. Start first with an assessment to validate your approach. Next, scale the architecture of new Data Warehouse that supports Data as a Service (DaaS). Next, empower internal business units with BI tools are leaner, require far less overhead, have shorter deployment schedules (thanks to Agile software development and Lean practices), and have far better reporting and visualization capabilities. Features like high speed data compression and in-memory capabilities are empowering users to consume and analyze data more quickly and efficiently.
  • What does a modernized BI and DW solution look like? If your executive team wants a better idea of what is (and even what is coming soon)—and is not—driving growth and member satisfaction, a revamped BI solution can sharpen that picture. Powerful analytics help expose meaningful and actionable insights, which could otherwise go unnoticed. Credit unions tell us that getting the right message to the right audience at the right time, where they live is a key component to member growth and incremental increases in revenue.

Aggregated data, KPI dashboards, and reports that signal critical member activity are fuel for identifying trends, building better messaging, and having more meaningful conversations with members. In a contrast to legacy BI systems, credit union employees are now being unburned from manual reporting and data integrity issues.  Instead, they have access to high-quality data and automated reporting and dashboards to help them make more informed strategic decisions (i.e. providing targeted offers to individuals considering a car purchase, or those needing overdraft protection, or sending alerts to members who have used an ATM where a phishing scan was detected!).

Wrap up

Credit unions that have successfully modernized their data warehouse, are pushing BI way beyond the ability to report delinquency, losses, and yields. A modernized BI system puts credit unions in the power position to capture and synthesize member data for growth opportunities. By leveraging new and leaner BI and data warehouse tools, credit unions are gaining more valuable insights that are leading to new sources of revenue, deeper member engagement, and greater efficiencies 

In our next blog post aimed at credit unions, we’ll talk about the first steps in revamping a BI environment. You’ll learn how a BI Assessment can help measure the effectiveness of your current data management capabilities and provide Agile, Lean and actionable recommendations for a successful BI program.

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Let's chat about it, we look forward to helping and becoming your data partner. 


Topics: Program Management, Data Warehousing, Blog

Written by Datasource