As another exciting year in the credit union industry comes to a close, it is a good time to reflect on everything we have learned throughout the year, and determine how to best prepare for success in 2018. It is an amazing time to be a part of the credit union movement as the entire financial services arena is changing before our eyes, and there is incredible potential for the movement with increasing collaborating and data analytics. As we look back on 2017, here are several of the industry’s favorite articles relating to credit union big data/analytics (and some other articles you may have missed) from OnApproach blog, The Decision Maker. This is Part 2 of 2 and features the top 5 articles you may have missed in 2017. Click here to see Part 1. Enjoy!
Topics: Best of
As another exciting year in the credit union industry comes to a close, it is a good time to reflect on everything we have learned throughout the year, and determine how to best prepare for success in 2018. It is an amazing time to be a part of the credit union movement as the entire financial services arena is changing before our eyes, and there is incredible potential for the movement with increasing collaborating and data analytics. As we look back on 2017, here are several of the industry’s favorite articles relating to credit union big data/analytics (and some other articles you may have missed) from OnApproach blog, The Decision Maker. This is part 1 or 2. To see Part 2, click here. Enjoy!
The Top 5 Favorites:
Topics: Best of
In the recent BIGcast, Big Data and a Small Credit Union, John Best speaks with Bill Butler, CEO, Ohio Healthcare Federal Credit Union about analytics initiatives at a small credit union, analytics tools, and the value of data quality.
Ohio Healthcare is an $83 Million Asset federal credit union serving the Health Care Industry in Ohio. Despite the size, the credit union has impressive achievements in data analytics and proves all credit unions benefit from an effective data strategy.
Quality Data Simplified
As a part of the conversation, Bill Butler discusses the tools he uses for analytics, and how his credit union is able to achieve greater analytics than many credit unions with resources larger than theirs. As Bill Butler explains:
Paul Ablack, CEO, OnApproach, joined Mike Lawson of CUbroadcast to discuss the state of the credit union industry, and why digital transformation is imperative. Credit unions have tremedous opportunities now with analytics and collaboration, but cannot afford to wait until banks and fintech disruptors get even further ahead in their analytics and member experience initiatives. As Paul states in the video, "If you don't start engaging with your members digitally, and giving them information that's very useful to them and helping them in their daily lives, you're not going to be able to compete, because there's lots of other people trying to think about that right now.... Now's the time to be really accelerating this strategy."
The term “digital transformation” has been a very hot topic recently, creating new conversations and products across a wide range of industries. This chart below, via Google Trends, displays the worldwide popularity of the phrase “Digital Transformation” in web searches since 2004. As shown in the graph, after remaining stagnant for over a decade, the term’s popularity has exploded in just the last year or so, raising questions about what this means, and how it will impact your organization.
An accepted definition for digital transformation is, “the application of digital technologies to fundamentally impact all aspects of business and society”. The important part of this definition is to realize that digital transformation does not mean just building a website, a mobile app, or obtaining a data warehouse. It means using your digital technology to transform your business processes. It means shifting your company culture to take advantage of your digital data to make informed data-driven decision and stay ahead of the ever-changing expectations of your members or customers.
At the 2017 NWCUA MAXX event, Paul Ablack joined Mike Lawson of CUbroadcast to discuss Digital Transformation, predictive analytics, chatbots, the upcoming Analytics and Financial Innovation (AXFI) Conference, the increasing popularity of blockchain, and more.
As a part of the conversation, Paul and Mike discuss member expectations and the interactions between credit unions and members. Members who shop at stores such as Zappos experience seamless and easy-to-use online shopping. These types of experiences alter the expectation for members when interacting with other organizations, such as their credit unions. In addition, credit unions have to learn how to connect with members throughout the entire decision making process. As Paul points out, credit unions need to position themselves to not just be in the business of loans or mortgages, but as an organization that is helping to make dreams come true. Rather than just being the last step in a process of getting a loan, credit unions could help with the decision making process, and truly be there for members before they've even decided whether they need a loan.
Earlier this month at at the CUNA Technology Council Conference, Paul Ablack caught up with CUbroadcast's Mike Lawson to discuss credit union real-time analytics, digital transformation, and machine learing.
Part of the conversation focuses on machine learning and artificial intelligence. Companies like Netflix and Apple are already using advanced machine learning and real-time analytics to provide quick, responsive, and superior member experiences. Your members are using these technologies today, which create higher expectations for service that must be met by financial institutions.
In the recent BIGcast, Analytics as The Fuel for Innovation – Implementing Analytics at OCCU, Andrew Bertrand, Data Analyst at Our Community Credit Union (OCCU) in Shelton Washington, discusses his role as a data analyst, getting started with data analytics, and data pooling for predictive analytics.
Getting Started with Analytics at OCCU
In the podcast, Andrew explains that prior to installing OnApproach M360 Enterprise, OCCU, a credit union with $360 Million in Assets, had an ODBC connection to their core system. It was a hassle to obtain data, and it didn’t meet the growing needs of a data-driven organization. Andrew realized that he could not possibly perform any predictive analytics without obtaining the history of member transactions.
After briefly (and in Andrew’s words, “foolishly”) considering to build their own data warehouse, Andrew decided it would be an inefficient use of time and resources. As John Best describes, for a financial institution to build their own data warehouse from scratch, is like building a “house of cards” as it has to be rebuilt repeatedly as elements are added and improvements are made.
In the recent BIGcast, To Fish with a Net or a Spear? Implementing Analytics at CUTX, John Best discusses data warehousing, core conversions, and winning at analytics with Keith Malbrue, CIO at Credit Union of Texas.
Core is NOT King
Years ago, in his previous role at another credit union, Keith Malbrue was the first OnApproach M360 client. He had come to OnApproach (a data consulting company at the time) with a problem. Keith realized member history was very important, and he didn’t want to lose all the member history when converting cores. According to Keith, it often feels like “Core is King” in this industry, but that doesn’t have to be the case. Credit unions should not have to lose member information because of a core conversion. To solve this problem, he engaged with OnApproach to discover a solution to this issue. The solution has come to be known as OnApproach M360 Enterprise.
By equipping his credit union with M360 Enterprise, Keith explains he gained 3 major advantages: