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4 Ways Data Can Make or Break a Credit Union

by Kayle Simpson, on March 10, 2016

Credit Unions are unique organizations, and with that, comes unique data problems. I spoke with our Director of Data Science, Pat Lapomarda, about what are the most crucial aspects of data that Credit Unions must pay attention to and why. From that, we compiled the 4 ways that data management, or lack thereof, can have detrimental consequences to a Credit Union - or any business!

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1. Member Data Organization

The most important part of a Credit Union is their members, of course! It wouldn't make any sense at all for a Credit Union to not keep tabs on who their members are, what accounts they have, and what accounts they don't have. Messy data can lead to horrible member experiences - like being unable to make a transaction, or worse- being mistakenly fined! 

 

"Messy data can lead to horrible member experiences" - Click to Tweet!

 

2. Knowing Your Members

Going along with number one, if your data about your members is disorganized and impossible to interpret - how can you possibly know your members? Keeping tabs on your members is not just about numbers, too- it's about demographics, behavior, and who they are on a personal level. These statistics can not only help detect fraudulent transactions, but can also make sure your marketing and sales teams are on track, too! 

 

3. Isolated Data

If you're a Credit Union, or any business with multiple physical locations, each branch produces their own data. Now, what happens if that data has no way to communicate with other branches and the organization as a whole? You run into a slew of mistakes, awful customer experiences, and missed opportunities for cross-selling. Let's say a member uses a branch in a different town from usual, but their account data doesn't show up accurately. Not good! 

 

4. Data Channels

Every place members can interact with a Credit Union- whether that be online, in an app, or in person- has its own data channel. Getting these channels mixed up can make member accounts susceptible to fraud. When a member makes a transaction online, a higher level of authentication is needed, and when your data channels are vulnerable- their accounts are too. 

 


 

In conclusion, disorganized data can wreak havoc in Credit Unions- but having a great data system isn't just about preventing these bad things from happening. Having organized and easily understood data can lead to opportunities in sales, marketing, and customer service that wouldn't be possible otherwise. 

Want to learn more about how data management can make or break a company? Check out our case study on the work we did for Direct Capital! (ADD LINK TO IMAGE)

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Topics:Data Science