by Hannah Barrett, on November 12, 2024
A Decade of Change
Over the last decade, data analytics within the credit union industry has undergone significant transformation. Once seen as reserved for large financial institutions, today even smaller credit unions are embracing data to drive key decisions, engage members, and ensure future growth.
A Journey with Data Analytics
When Melissa Pomeroy joined the credit union industry a decade ago at St. Mary’s Bank, the concept of being "data-driven" was still in its infancy. Terms like "data warehouse" and "single source of truth" were just emerging. At the time, credit unions, even larger ones, rarely utilized their data efficiently for operations, marketing, or advanced analytics. The consensus was that data warehouses were a tool for larger banks, not for credit unions.
However, as St. Mary’s Bank underwent a core conversion—replacing core systems and ancillary ones—it became clear that leveraging data was crucial for ensuring smooth operations and maintaining services for members.
We learned very quickly that the best way to get started on our core conversion... is to leverage our data, understand our data, and centralize our data.” said Melissa Pomeroy.
Guided by Arkatechture, St. Mary’s Bank built an on-premise data warehouse that played a pivotal role in this transition. This move not only helped balance systems during the conversion but also enabled real-time reporting and analysis, setting the stage for a deeper embrace of data across operations.
The Shift to Data-Driven Decision Making
Fast forward to today, and the credit union industry is much more data-focused. Modern credit unions now aim to make data-driven decisions that enhance member engagement, retention, and growth. Terms like "data warehouse" have evolved, with a heavier focus on digital transformation and cloud-based solutions.
One key observation is the growing acceptance of FinTech partnerships. Where previously credit unions may have been wary of external technology solutions, today they are encouraged to partner with FinTech companies that offer targeted data solutions. These collaborations are helping credit unions of all sizes streamline operations, drive efficiency, and enhance the member experience.
Data is what’s going to give us the competitive edge in this industry. It’s not just about member service anymore—it’s about personalization and anticipation of needs" said Melissa Pomeroy.
Embracing Cloud and AI
Cloud-based data solutions have become the standard, enabling credit unions to scale and adapt more quickly than ever before. This shift has been accompanied by the rise of artificial intelligence (AI), which is increasingly embedded in daily operations, often without credit unions even realizing it. Credit unions are now encouraged to fully embrace AI and FinTech solutions as part of their broader digital transformation efforts.
The reality is, if you’re leveraging any Fintech whatsoever, you’re already leveraging AI. We all are. It’s in our day-to-day now" said Melissa Pomeroy.
The Road Ahead: 2025 and Beyond
The ability to seamlessly integrate data with multiple platforms and partners will enable credit unions to offer services at scale and keep pace with technological advancements. As AI continues to grow, credit unions must prepare for a future where data is central to every strategic decision they make.
Melissa's journey—from hesitant beginnings in data analytics to fully embracing its transformative power—mirrors the larger evolution happening across the credit union industry. Whether you're just beginning your data journey or are already making fully data-driven decisions, the future promises even more innovation and opportunity for those willing to adapt.
Credit unions that embrace data today, whether through small steps or major digital transformations, are positioning themselves for a future where data is key to growth and member success.
You have to start somewhere. Don’t be afraid to take that first step in becoming more data-focused.” -Melissa Pomeroy
Melissa Pomeroy: Core Conversion Veteran, and Credit Union Advocate
Melissa Pomeroy, COO at the Cooperative Credit Union Association (CCUA), is a senior strategic leader and dynamic public speaker with over 20 years of professional experience in operational leadership, IT program management and business and data analytics. These are her personal insights from her experience leading data transformation and core conversion projects at St. Mary’s Bank.
The Cooperative Credit Union Association (CCUA), represents Delaware, Massachusetts, New Hampshire, and Rhode Island in supporting and lobbying for the success of credit unions through fostered collaboration and innovation among their members, including initiatives centered on data analytics.
Learn more in the full free webinar!
