In the first part of this blog, we learned about who Generation Z is. Now that we have a better understanding of who we are talking about and realize that we need to be prepared, let’s look at what it means for your financial institution.
What would you do if you knew the following information:
- The make, model, and competition for member's next vehicle.
- Where members shop, buy their groceries, fast food, and gas.
- Identify what members are most likely to watch, read and listen.
- Identify who is currently disrupting your business.
And, if you knew all this, how would you change your products, channels, staff and marketplace position to increase the value to your members? Fortunately for the industry, credit unions have robust amounts of data that can be connected to gain insights to help them better understand their members and improve their lives.
Just as healthcare is developing robust analytics for patients, credit unions have a great opportunity to empower members to track their financial health and take actions to improve it.
Being raised in a small town, I never thought about the healthcare I received. I had the same doctor from birth until I moved to college. As long as nothing seemed wrong to him, I felt confident that I was healthy. However, when I moved to a bigger city, everything changed. I was no longer able to rely on my hometown doctor, and I needed a way to monitor and maintain my health. At the same time, the healthcare industry was going through a data revolution. The traditional relationships between doctors and patients were changed forever. In shopping for my new healthcare provider, I felt the most comfortable with the one that had the best analytics and enabled me to make data-driven decisions to improve my health.
As credit unions begin their journey into the future, they must rely on an industry standard analytics platform to guide them to their destinations.
Google Maps has revolutionized how we navigate our lives. It saves us from headaches caused by unnecessary traffic and other challenges in traveling. My journey from work to home has many different routes depending on traffic patterns. During days with slower traffic (i.e. - winter snowstorms), the Google Maps recommended route will change every 5 – 10 minutes. Using an analytics engine that informs me of the best route allows me to spend extra time on more important things in life. Credit unions have a similar opportunity when navigating their institutions into the uncertain future of financial services. Establishing an industry standard analytics platform will enable credit unions to cooperate on analytics and guide them to their desired destinations.
A common language forms a bond between humans and strengthens their ability to cooperate. Credit unions must agree on common semantics to establish powerful business analytics throughout the industry.
Collateral Valuations are essential while serving members and maintaining a healthy credit union. However, credit unions are relying on inaccurate valuations of their members’ collateral values because of disintegrated data.
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.
As an industry in the middle of a massive shift, credit unions must steer in the best direction to enter a prosperous future.
The Financial services industry has traditionally been an industry where change happens gradually at the direction of a few large institutions. Since the introduction of the internet in the 1990’s, finance has been in a state of exponential change. The digitalization of money is causing an even more powerful catalyst of change: the proliferation of data at a pace most credit unions cannot fathom. Consequently, credit unions must form a data-driven vision to act as a strong rudder to navigate through the data storm.