By now, credit unions are aware of the industry’s changing landscape. Credit Unions are facing Fintech influence, industry disruption, and realize it is no longer an option, but a necessity to capture and optimize every piece of obtainable data to remain competitive in financial services. Large banks have been investing heavily in big data and continue to do so. Unfortunately, these banks are directly competing with credit unions, which don’t have the same resources available to effectively invest in big data. Awareness is step one, but one state is taking action to put the power of big data in the hands of credit unions.
Financial Technology (Fintech) startups are making waves throughout the financial services industry. Traditionally functioning banks and credit unions are facing a time of extreme change, both competing with and potentially benefiting from these new financial technologies. KPMG recently released, “The Pulse of Fintech, Q2 2016: Global Analysis of Fintech Venture Funding” to accurately paint a picture of Fintech growth and funding.
Data generation continues to grow at an exponential rate throughout the credit union industry. In order to hear the signals through the noise, credit unions must establish a single version of the truth.
Let’s face it: we live in a world where a strong data and analytics competency is becoming a “must have” for successful companies. Despite the growing significance of analytics, the majority of banks and credit unions are not “data-driven” organizations.
We’ve uncovered a number of common reasons why investment in data and analytics has been pushed off or outright rejected. Despite these challenges, most of the common reasons against data and analytics are driven by inaccuracies or misinformation.
In this post, we will address the common pushbacks against data and analytics projects and how to overcome those challenges.
If there is one “truism” that has emerged in the credit union analytics revolution, it is that successful analytics initiatives are usually driven by, or strongly sponsored by, the CEO. Most grassroots efforts to launch such initiatives fail because the amount of organizational change required for success can only be effectively led from the C-suite.
However, it is not enough for a CEO to preside over the launch of analytics. Top managers must also be prepared for a second wave of post-launch complications that threaten to scuttle even the most promising programs.
A professor at the University of Minnesota once taught me that death and taxes are not the only certainties in life, because you can also always count on your budget being wrong. While this (annoyingly) still seems to prove true, there are a number of practices to improve budget planning and optimize the potential of your budget to prepare you for data analytics.
With fall around the corner, many credit unions are entering the budget planning stages for the next year. If you are planning to remain competitive in the industry, this does not mean you are simply tweaking minor adjustments from last year’s budget.
For starters, yes the title is a terrible play on “when life gives you lemons, make lemonade”.
Bad jokes aside, I hear too frequently how organizations need more and more data. I’m a data guy – I’m all about data. But there is a subtle difference between having more data and more information.
Below is one of my favorite quotes about data:
A common language forms a bond between humans and strengthens their ability to cooperate. Credit unions must agree on common semantics to establish powerful business analytics throughout the industry.
Credit unions need to connect data that will breakdown silos and create a member experience that is beyond anything that currently exists.
But how and who is accomplishing this effectively?
Look no further than the fitness app loaded on your smartphone.
Fitness/health apps have become masterful at creating impactful user experiences that provide detailed and precise information to the company. The end result is predictive and prescriptive product offerings that create personalized user experience that includes trust, retention and advocacy.
Here is an example to demonstrate.