Originally published on CUTimes.com
Credit unions are facing new challenges and opportunities to rapidly improve their business performance, member experience, and their employee experience as well. With changes in consumer patterns due to COVID-19 and the macroeconomic impact of rising interest rates, member expectations have significantly shifted.
Implementing a robust data analytics program can allow credit unions to:
Credit unions must rapidly innovate to offer cutting-edge technology that will improve their business performance and member experience. The best way to do this is to dig into data, the best asset a credit union has for making and prioritizing critical decisions around innovation.
It's important to get the whole organization access to the right data in a timely fashion via reports and dashboards so they can understand and digest data, and use it to generate insights, make decisions, and take actions appropriate to their role.
This requires data stewardship from stakeholders who understand and can provide the right support for their department’s functions, goals, and what data points and key performance indicators are critical to them.
A data analytics solution enables a credit union to have a single source of truth and unify data at the member level across core banking, loan origination systems, digital banking, digital payment, and all other systems that support the credit union and its members. This also establishes a foundation for rapid innovation that could include adding new technologies and data sources and/or swapping out legacy systems for new cutting-edge technologies that will improve credit union performance and the digital and overall experience of its members and employees.
Implementing a data analytics solution is a critical investment credit unions can make to identify and drive opportunities for making continuous improvements to business processes. Providing the right role-appropriate data across the credit union can help generate insights needed by the right people to make the right decisions at the right time in order to meet their member's financial goals, reduce costs, improve margins, and generate more revenue. Additionally, data analytics can help inform and improve decision-making in the current macroeconomic environment in key areas including:
Below are some key questions to ask in order to develop an initial ROI-justified business case for moving forward with an advanced data analytics solution that will reduce cost, and establish a foundation for additional ROI business cases for generating more revenue and increasing margins:
Your credit union will see significant returns on your investment in data analytics based on the experience of other credit unions. For example, a study by Nucleus Research documents the high return on investment that can result from an investment in data analytics.
According to this research, on average, for every dollar spent on a data analytics solution, customers generated $9.01 in benefits on an average project budget of $563,114. In addition, the return on investment from data analytics increases as the maturity of data analytics progresses across the following stages of a data maturity journey.
Below are just a few examples of credit unions that have generated a return on their investment of implementing a data analytics solution:
Credit unions were able to improve staffing efficiency by:
Credit unions were able to eliminate work by:
Don't risk falling behind with the current climate, competition, and volume of data your credit union accumulates as it grows. The timing has become urgent for credit unions to look at options for upgrading their data analytics program.
So what are you waiting for? Don't make the mistake of not keeping your technology updated with the current climate, competitors, and the volume of data your credit union is accumulating as it grows. Need some help getting started? Talk with a data expert at Arkatechture today.
For a simple 4-step process, check out this ROI One-Pager
References:
1. https://nucleusresearch.com/news/roi-of-business-analytics-increases-significantly-as-solution-matures/