Friday, May 9, 2014

Should Big Data Be a Big Deal at Your Credit Union?




“Big data.” It’s a phrase that seems to be bandied about in the business, marketing, technology and industry worlds more and more frequently as of late. The phrase seems self-explanatory, but what does it really mean and how does it impact your credit union?

Big data refers to the massive amounts of information companies and organizations potentially have at their fingertips, but the data is too massive to be managed or processed with commonly used software tools. Ever heard of a petabyte? That’s 1015 bytes – that’s how much information we’re talking about. And that’s in a single set of data for a single organization/company.

Still not sure what the big deal is about big data? Since everything your credit union does now is computer-based, you have thousands of files at your disposal whose information could help you determine everything from marketing campaigns and new products to if/where you should open your next branch.

Finding Your Big Data
Not exactly sure what kind of big data your credit union has access to? Here’s just a sampling:

  • Loan history
  • Credit scores
  • Transactions
  • Credit/debit card usage
  • Mortgage history
  • Demographics
  • Investments
  • Social media activities

We’re sure you can think of many other areas in your credit union that will supply you with additional big data opportunities. 

Using Big Data at Your Credit Union

Okay, so now you know exactly what big data is and where to find it at your credit union – now what? Big data gives you an opportunity to show your members what your credit union does best – care about its members’ needs. Analytics can go a long way to uncover what areas are underserved such as when your members will be in the market for a new home or car or would benefit from changing their credit card or tweaking their investments – which could all help not only grow loans, etc., but will also boost member loyalty. Analytics also open the door to more easily cross-selling products and services to your members. If your members are already using one or two of your products or services, it’s much easier to persuade them to try more than it is to woo a prospective member to do so.

Recent studies have shown that financial institutions that apply analytics to customer/member data have a 4% point lead in market share over those that don’t. And the difference of financial institutions that use analytics to understand customer/member attrition have a 12% point lead. So, as you can see, big data not only helps with lead generation, it can also help increase member retention. What credit union doesn’t want that?!

If you’re unsure how to access your credit union’s big data or need some help analyzing or implementing your information, CU Solutions Group’s research team is here to help. Feel free to contact us today!


 

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