LAS VEGAS – The sheer volume of consumer data opens up great opportunities for credit unions to grow and strengthen member relationships, said CUNA Mutual AdvantEdge Analytics’ President Tim Peterson. CUNA Mutual AdvantEdge Analytics is the new data and analytics technology and services business created to help credit unions deliver a better member experience through actionable data insights. Peterson presented on the power of data analytics and what credit unions can do to embrace data strategies at a CUNA’s America’s Credit Union Conference breakout session Wednesday.
“Data is rising at an incredible pace, covering all aspects of a consumer’s life. In the past two years, more data has been created than in the entire previous history of the human race1,” said Peterson. “Within five years, there could be almost 50 billion smart connected devices in the world, all developed to collect, analyze, and share data.2”
While access to all of this consumer data opens up opportunities for credit unions, it also presents challenges as they look to use data to grow and strengthen member relationships. Peterson explained consumers expect simple and instantaneous service, making an omnichannel member experience imperative for credit unions to embrace. “It is more than mining data for cross-sell opportunities; it is about building the right data insights to bring the right value at the right time to that member,” said Peterson.
Peterson outlined three major opportunity areas that credit unions can embrace by leveraging data analytics. These areas include boosting traditional revenue levers, developing new growth areas, and delivering a better digital experience.
Through several examples, Peterson illustrated how data insights can deliver real value for credit unions. For example, by identifying characteristics of high loyalty and high lifetime value members and applying these data points to indirect members, a credit union can build measurable opportunities to strengthen these inactive relationships.
Peterson said even though, as an industry, credit unions are beginning their journey on the analytics maturity spectrum, that isn’t an indication that data is not a priority for credit unions. According to an AdvantEdge Analytics survey report, almost 75 percent of credit unions see data analytics as a way to transform the way they do business.3 While less than 10 percent of credit unions have a comprehensive, multi-year roadmap established, Peterson indicated our industry has the strength and investment partners to collaborate and accelerate credit unions’ ability to scale and expand data capabilities.3
“Data analytics and insights are essential capabilities for credit unions to strengthen the member experience and expand future growth opportunities,” concluded Peterson. “As we build out our data analytics acumen together as an industry, we can build and expand these insights to facilitate industry-wide collaboration to benefit the overall credit union system for the long term.”
For more information, please visit www.cunamutual.com/AdvantEdge.
About CUNA Mutual AdvantEdge Analytics, LLC:
CUNA Mutual AdvantEdge Analytics, LLC (AdvantEdge Analytics) provides comprehensive data analytics services for credit unions. AdvantEdge Analytics brings together data management, reporting and performance management, and advanced analytics into one complete offering. Our trusted consultants collaborate with our customers to effectively harness the power of data in new and insightful ways. Additional information about the AdvantEdge Analytics can be found at www.cunamutual.com/AdvantEdge.
About CUNA Mutual Group:
CUNA Mutual Group helps people plan, protect and invest for their future – regardless of their financial standing. The company was founded more than 80 years ago by credit union leaders who were looking for an insurance partner they could trust. Today, CUNA Mutual Group helps credit unions and hardworking Americans build financial security through commercial and personal insurance products; lending and payment security solutions; and risk management, retirement, investment and marketing services. Additional information about the company can be found at www.cunamutual.com.
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Life, accident, health and annuity insurance products are issued by CMFG Life Insurance Company and MEMBERS Life Insurance Company. Corporate headquarters are located in Madison, Wis.
1 McKinsey & Company Report: Straight Talk About Big Data, Oct 2016, page 3. (PDF) http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/straight-talk-about-big-data;
2 McKinsey & Company Report: The Internet of Things: Sizing up the opportunity, page 2. (PDF) http://www.mckinsey.com/industries/semiconductors/our-insights/the-internet-of-things-sizing-up-the-opportunity;
3 CUNA Mutual Group Report – Advanced Analytics Report, page 4-5. 2017. (PDF);