A recent Gallup poll reveals that 45.7 percent of credit union members say their credit union makes it easy for them to manage their finances, compared with 31.3 percent of customers of national banks. That is good news for credit unions. Yet there is evidence that credit unions may not be capitalizing fully on this positive sentiment from members due to a failure to harness the power of the data at their disposal to drive actionable insights, find cross-sell opportunities for members, and use the data they have to improve the member experience.
Improve the credit union member experience with financial data management
The same Gallup poll shows that only 29.7 percent of members feel that their credit union offers solutions that fit their needs, only 20.2 percent feel that their credit union helps them make better financial decisions, and only 20.7 percent feel that their credit union helps them meet their financial goals. One reason for these statistics may be that many of these small to mid-sized institutions lack a data and analytics platform that could potentially provide insight into when and how to have member conversations to educate, inform, and help members plan for their financial future.
Financial data and analytics platforms can provide credit unions with the data-driven insights they need to get the most from their relationships with existing members.
Financial data and analytics platforms can provide credit unions with the data-driven insights they need to get the most from their relationships with existing members. There are many ways these platforms can improve member experience:
- Capturing banking and member data in an organized way and then using predictive analytics to pinpoint typical member behaviors upon which the credit union can act. Data capture can include both internally held financial data and external geographic and social information.
- A data management platform can integrate siloed data into a form addressable by a visualization tool to highlight behavioral patterns and potential interventions across the member journey.
- Since it requires more time, money, and effort to replace an existing member than to retain one, detecting and responding to potential attrition risks by using data is imperative. Setting metrics to flag complaints, large withdrawals, or no activity within a certain time period – and then automating a personalized credit union response – could help retain and engender loyalty among members.
- On the front end, a data and analytics solution can improve the end-user experience and build loyalty. A single log-in to all financial data and credit cards lets members track all data in one place, from upcoming bills, spending, and account balances, to possible fraudulent activity. Members want this kind of 360-degree view of their finances and are open to counsel from their credit union in reaching their financial goals.
Credit unions face myriad marketplace competitors, so retaining current members while attracting new ones is increasingly difficult. That is why these community-centric organizations must understand the wants, needs, and priorities of their members. Harnessing and using data is a critical and mandatory skill and asset to remain competitive in the face of a wide, diverse, and larger competitive financial field.
To find out more, download How Credit Unions Achieve Profitable Growth With Data and Analytics.