A recent Gallup poll shows that 45.7 percent of credit union members say their credit union makes it easy to manage their finances, compared with 31.3 percent of national bank customers. That’s good news for credit unions. However, there is evidence that credit unions are not taking full advantage of this positive attitude from their members because they are failing to use the data available to them to gain actionable insights, find cross-selling opportunities for their members, and use the data available to them to improve the member experience.
Data Governance and Lineage can provide credit unions with the data-driven insights they need to get the most out of their relationships with existing members. In many ways, these platforms can improve the member experience:
- Collecting bank and member data in an organized way and then using predictive analytics to identify typical member behaviours that the credit union can respond to. Data collection can include internally held financial data as well as external geographic and social information.
- A data management platform can integrate isolated data into a form that can be accessed by a visualization tool to show patterns of behaviour and potential interventions throughout the member journey.
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- Since it costs more time, money, and effort to replace an existing member than retain them, it is imperative to identify and respond to potential churn risks through data. Establishing metrics that indicate complaints, high withdrawals, or no activity within a specific period and then automating a personalized credit union response can help retain and engage more members.
- On the front end, data and analytics solutions can enhance the end-user experience and build loyalty. With a single login for all financial data and credit cards, members can track everything in one place, from upcoming bills, expenses, and account balances to potentially fraudulent activity. In most cases, members want this kind of 360-degree view of their finances and are willing to let their credit union help them achieve their financial goals.
Credit unions face myriad competitors in the marketplace, making it increasingly difficult to retain existing members while attracting new ones. Therefore, these community-focused organizations need to understand the wants, needs, and priorities of their members. Leveraging data is an essential and mandatory skill to remain competitive in a large, diverse, and competitive financial sector.