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!

 

Make it Easy to Share (and Members under 25 Will Thank You!)

Gen Y (also known as the millennial generation) is growing up and making financial decisions that will likely affect their lives for years to come. They also represent a significant sector of the population that your credit union (if it isn’t already) will want to attract and retain as members.

Think New School with a Bit of Old School Mixed in…

Gen Y members are “28% more likely than the average consumer to have a smartphone”¹ and are much more likely to use mobile banking online personal finance management tools and an online person-to-person service. In what seems a contrast, though, Gen Yers “prefer to develop relationships face-to-face … and want to be more comfortable with the financial provider before transacting a loan online.”²

That means the positive in-person relationship is still important—and that’s good; you probably have that part of the equation down to a science. Now it’s time to take a look at your website—and make sure the information is credible; because while Gen Yers like to use the Internet, they know that plenty of misleading information appears online—and so they do not take the information they read for granted. Once you’ve done that, what’s next?

Go Mobile
It’s a bit different than what The Who sang about in 1971’s “Going Mobile” but it’s just what your credit union needs to do—extend your relationship with members to the mobile and online social worlds.

Your credit union can become something that Gen Yers take with them wherever they go—whether they’re going on vacation, out to eat, or just to a friend’s house. One simple way to achieve that is through a mobile version of your site. Let your members find the information they need at the moment it’s relevant. (Think: I’m going to dinner with friends and want to get some cash from the ATM. Where’s my credit union’s nearest branch?)

A mobile site is just the beginning. Your credit union can be more than just a financial institution; it can be a source of information that Gen Yers can share with their friends and family. After all “most young adults share interesting or useful websites with their families and friends … and 60% of young adults use the Internet to find information about companies.”³ If, in addition to product and service descriptions, your site contains financial education tips, that’s something useful that can be shared. But don’t let those tips stop at your site; tweet them and post them on Facebook. Consider posting brief video tips, too, either on your site or on YouTube. Start an online blog—and ask your Gen Y members to post as well. Start the conversation about finances—and invite your members to keep it going.

With the right blend of technology platforms and a bit of the human touch, your credit union can be the “go-to” source for financial products and services—and the source members can reach and share when they’re on the go.

Sources
1. Affinity Research
2. Attracting and Retaining Young Adult Members, Filene Research Institute, 2003
3. Attracting and Retaining Young Adult Members, Filene Research Institute, 2003
 

Related Services:  Mobile Apps & Sites, Digital Media, Online Services