5 Benefits of Becoming a Data-Driven Credit Union


5 Benefits of Becoming a Data-Driven Credit Union

The slow rate of technology adoption has hindered most credit unions’ growth. Credit Union Journal revealed that 45% of credit unions do not have a strategy for analyzing member data. While some lack resources, most credit unions are not aware of the benefits of business intelligence solutions.

Credit unions need data driven insights that empower them with deep, actionable insights to improve revenue, increase operational efficiency and protect themselves against fraud. Our powerful AI-enabled data analytics engine leverages historical and current member data to help credit unions digitally transform their business. Let’s understand how.

Enhance acquisition and member journey

Credit unions must understand that gathering data from all touchpoints–website, social media, mobile apps, branches, and call centers, can help improve member experience. Real-time data analysis can assist leaders in determining which member segments are more likely to buy their products and when. Locate prospective members, identify their needs to improve member experience, and take proactive steps to prevent member churn.

Improve your members’ financial wellness

Educate your members and provide services such as financial literacy programs to promote financial wellness. Using advanced analytics solutions, you can gather data and better know your members, understand their situation, and become a member-centric union that prioritizes individual needs. Use this opportunity to find the best offer for your members and generate new revenue streams. With the help of data, you can even proactively identify and engage at-risk members and improve their financial wellness.

Accelerate growth of wallet share

Credit unions need to build value into their existing products to retain their members. More detailed profiles of members, including their transactional analytics, can help improve retention as well as cross and upselling, resulting in increased wallet share. Further, enhancing offer timings can result in better returns, and that is possible through near real-time insights. It will empower the marketing and sales team to act when the opportunity is hot.

Improve credit risk assessment accuracy

Credit unions can lower risk costs through data analytics techniques, such as credit scoring, advanced early-warning systems, credit-collection analytics, etc. The advanced banking analytic solution can analyze a comprehensive set of data, including member spending behavior and other internal and external member data, to yield a complete understanding of any member’s creditworthiness.

Enhance debt recovery and collection

It’s crucial for credit unions to maintain member relationships and mutually seek debt repayment with their borrowers. Using Finlytica Advanced Analytics Solutions, credit unions will be able to collect and analyze external as well as internal member data and build relationship strategies that will accelerate fund payments to creditors. This will preserve goodwill and increase the lifetime member value of credit unions.

Knowing the benefits of adopting a data-first strategy is the first step in becoming a data-driven credit union. Eventually, you will begin to see how data-driven insights, while making decisions, can help deepen your relationships with members and increase the profitability of your business.

Posted on Dec-05-2022

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