by Hannah Barrett, on October 23, 2024
CU Broadcast Interview with Arkatechture
Jamie Jackson, CEO at Arkatecture, and Mike Kraus, Principal at TruStage Ventures, stopped by the Studio Lounge at the Trustage Ventures 2024 Fintech Summit to discuss how credit unions can get started on their AI journies.
Challenges to Becoming Data-Driven
Jamie Jackson touches on why more credit unions aren’t fully data-driven, citing factors like "a lack of confidence" and the absence of a well-defined strategy. He explained that some credit unions go all in without any real plans as far as what they're looking to accomplish, which can impede progress. This is where a solid data strategy is very important for a successful data transformation.
AI and Predictive Analytics
The conversation shifts to artificial intelligence, with Jackson explaining that many credit unions are eager to adopt AI and predictive analytics due to competitive pressure, but they often lack a clear understanding of how to effectively implement these technologies. He notes, "Is that really the right reason?" and emphasizes the need to build a data-driven culture rather than jumping on trends.
Mike Kraus also points out the challenges credit unions face with "disparate systems" that make it difficult to extract and analyze data. He emphasizes the need for systems integration, which is a key hurdle many credit unions encounter on their journey to becoming more data-driven.
The foundation needs to be laid first. And it’s a journey. It’s not something that’s going to happen overnight. There’s got to be a lot of partnership with the credit union, their data team, their executive team" commented Jamie Jackson.
Data is being used for predictive analysis, which helps credit unions anticipate member needs, retain high-value members, and reduce attrition. AI is viewed as a support tool that can enhance member engagement, but it requires a strong foundation of organized, centralized, and governed data. Without this, AI cannot effectively be utilized.
The first step for many credit unions has been automation, which, while not as flashy as AI, is crucial for improving operational efficiency. Some credit unions are even embedding AI engineers at the frontline to better understand and automate their processes.
You can get all this data-- it's great to see where the credit union's been, but looking where it's going and how to reach members in the best way, being more predictive and really plugging into some of these fintechs to have actionable insights and actually drive some of that digital engagement or membership growth, whatever it is, that's the next step" said Jamie Jackson.
Learn more in the full interview at CU Broadcast
