As financial technologies become more complex, credit unions must design their business and data models around the member.
Credit unions aiming to build Big Data & Analytics capabilities have a lot of decisions to make. One of the most fundamental decisions is how much source data to capture. The two dimensions of “how much” are depth and breadth.
With systems designed to capture a robust amount of data on every transaction that occurs throughout the credit union, standard data sets are required to form strong analytics.
Credit union leaders must develop a data-driven vision. The ideals cast in this vision give clear direction to employees. That being said, without standard data sets to monitor business processes, credit unions will fall into a worse condition than before establishing an analytics program. Employees will bring data to meetings but will have different versions of the truth. Standard data sets are essential for a solid analytics foundation.
The DNA of any organism is the model of its identity. Analytical models of data (the building blocks of the credit union) will allow the industry to make better decisions that reflect their character.
As data pours in from multiple facets, credit unions must be able to mold it into a model. Similar to DNA code for each living organism, data needs to have a code. Analysis built on raw data makes organization-wide decisions difficult. Therefore, a certain data structure is necessary. Defining this structure is how each credit union defines their unique character. Every organism has a unique code for their life; DNA. Genetic code instructs every cell and allows an organism to function harmoniously, even when it is not consciously in control. This is the way that the credit union of the future must be designed. The analytical data model (ADM) is a credit union’s DNA code.