The promise of business intelligence and Big Data/Analytics has been around for years. Companies have been making claims that data-driven decision-making will revolutionize organizations but have failed to fully deliver. It is true that descriptive analytics (reporting) is necessary and valuable but in order to create real value (Return on Investment) for data analytics, organizations must think about the future. In order to achieve real value from Big Data/Analytics, organizations must execute predictive analytics.
The credit union industry is on the cusp of significant challenges with the potential to disrupt the financial services landscape as we know it. Big Data and Analytics is driving a new breed of competitor into what has been a very traditional marketplace. The industry will need to envision and build out the “Next Big Idea” for credit unions to stay competitive and successfully navigate the next 10 years.
OnApproach's Founder and CEO Paul Ablack discusses today's evolution of Big Data and how credit unions can benefit from this increasingly refined information to provide more specific products and services for enhanced value.
Topics: Reporting and Analytics, Business Intelligence, Big Data, Credit Unions, Data Integration, Marketing, Data Pool, Video, Podcast, Collaboration, Analytic Data Model, Digital, Lending, Data Analytics
I recently attended a seminar at which John Best, CEO of Best Innovation Group, presented on the topic of mobile technology and payments. A key takeaway from the presentation was his explanation of why many technology implementations fail.
Supreme Court Justice Potter Stewart famously said about obscenity, "I know it when I see it". This often seems to be the case with many credit union decision makers when asked to define Business Intelligence (BI) requirements.
Consider this common scenario: an innovative credit union executive champions the BI concept. The executive points out all the flaws in organization’s current reporting and analytics. Then, showing examples of how BI is revolutionizing performance in other industries, secures budget dollars for a BI initiative.
Meeting the rapidly changing data requirements necessary for today’s economy and allowing credit unions to adapt.
“Unity is strength... when there is teamwork and collaboration, wonderful things can be achieved.” –Mattie Stepanek
The credit union industry (or credit union movement as it’s often referred to) is probably one of the most collaborative industries in the United States, if not the entire world. Unlike other organizations, credit unions share ideas and even their “secrets.” They truly care about the welfare of the industry and its millions of members. It’s great! Collaboration benefits credit unions in several ways but one way, in my opinion, presents the biggest opportunity. Big Data and Analytics.
When we talk to credit unions about their plans for big data/analytics we try to explain that the word “data warehouse” is a loosely defined term and that a true enterprise data warehouse requires a significant amount of planning and a robust architecture to meet the needs of the users. The architecture we have chosen for our OnApproach M360™ data model is the star schema developed by Ralph Kimball.
A frequently asked question in the credit union movement is, “what is the data most credit unions have that they should be gathering, monitoring and reporting?”
In short, all of your data can be a critical component in gaining valuable insight into your members and optimizing business practices. The big question is . . . How accessible, comprehensive and useful is the data?