In the first episode of the BIGcast Data Analytics Series, John Best speaks with Anne Legg of THRIVE about credit union growth and member engagement. The financial services industry is changing rapidly, and credit unions need to keep on top of innovative technologies and competitive threats. As John and Anne discuss, big data has become a necessity for credit unions to continue to thrive.
The Opportunity for Credit Unions
Credit unions have a very robust collection of data. According to Anne Legg, the absorption and embracement of data is very intuitive for many credit unions, so they “lead with their gut”. This is actually the right idea, because decisions are being made after taking history and knowledge into consideration. However, as Anne states, “…the opportunity for credit unions is to take that intuitive, and match it up with data centricity.” Intuition is very valuable – it helps to come up with the questions and hypotheses that the data can help to answer or confirm. When you are able to truly align your intuition with a solid analysis of data, your organization will be in a good place to properly serve your members.
Credit Unions can learn from Taco Bell
Taco Bell is an example of a business that has found success by creating all kinds of new products using the same ingredients in new ways. If Taco Bell customers are growing tired of the current menu or they’d like to attract a new customer, the restaurant might put crunchy chips inside an item, or double-wrap it with extra cheese and another tortilla. Credit unions need to figure out how they can essentially re-package the products already offer and “create more awesomeness for their members”.
To do this, credit unions have to take advantage of ALL data: core, ancillaries, social media, annual reports, etc. Credit unions have to fully understand who their members are, why they chose their credit union, and how they are engaging. Then credit unions can decide what members want and how they can best meet those demands.
The first step in this process is to collect the ingredients in the kitchen and sort them out. There is very valuable information in a credit union’s data, but the credit union has to be able to dig down to the transactional level of member engagement and understand the data so it can be utilized enterprise-wide.
The 3 Rules of Moonshots
Moonshots, another concept discussed on the podcast, is a formal process for innovation created by Google. The process is created by the idea that innovation doesn’t happen by looking at the ground – it occurs by shooting for the moon, and landing somewhere more innovative than on the ground (whether you make it to the moon or not).
Rule #1: There is no bad idea.
Rule #2: Read rule number one.
Rule #3: Money and time are no object.
Of course, after the moonshotting round, discussion must be had about feasibility, budgeting, skill requirements, and data needs. Whether you can implement and achieve all the ideas that result from a moonshotting round or not, it is a great way to start thinking in an innovative way, exploring new possibilities, and some version of those ideas just might be a new and successful direction for your business.
To learn even more about these ideas, and also curbside service, brand archetypes in the credit union industry, and more, listen to the entire podcast: http://bigfintechmedia.com/Podcast/curbside-service-with-anne-legg