We have been meeting with credit union executives over the last several months with the message of “make data a strategic priority.” While some credit unions understand that the volume, velocity, and variety of data is exploding, most credit unions make data a project, and not a strategy.
A Bank in Australia gets it. On 22 January 2014, Westpac Group was ranked number one in the 2014 list of the ‘Global 100 Most Sustainable Corporations in the World’. Their vision is to be one of the world’s great companies, helping our customers, communities and people to prosper and grow. They know they cannot achieve their vision without making data a strategy.
"We want to make sure that every time we interact with a customer there is something that is personalized for them," she said. "We are trying to use data so that customers will stay engaged with the bank forever." Underpinning Knowme (name of their program) is the huge volume of data the bank gathers from its customers, its ability to extract meaningful information from it using data analytics, and its increasing ability to interact with customers online.
"Our data sources are growing very fast and customer interactions are growing very fast," Ms Ganschow (General Manager) said. "We know who you are paying. We know where you are shopping and what you are buying. There is a lot of data pouring into our data warehouses." Online interactions with the group's 9 million customers are growing even faster, from 4 million per month in 2011 to 60 million a month last year, half of which came from mobiles. The bank estimates interactions will reach 100 million per month by next year.
Making data a strategic priority is a must. It begins with executive leadership, establishing an internal Business Intelligence (BI) team, and implementing tools and technologies. Eliminating data silo’s and creating a single source of truth (data warehouse) is the foundation of a good BI strategy.