Credit unions today operate in an increasingly data-centric world. Organizations across industries are taking a new, bolder approach to data, from collection to analysis to deployment.
With the amount of data generated by devices, members, and interactions, there’s a powerful opportunity to draw new insights, create better products and services, add new revenue streams, and change entire business models.
Credit unions risk being left behind as other financial institutions fully embrace data utilization and optimization.
According to a recent BAI report on top banking trends and challenges, data is essential for improving member experience. In a BAI survey of financial services leaders, the top recommendation for improving the member experience was to make better use of data for product and service delivery.
Leveraging that data will likely lead to more digital interaction, which financial services leaders indicated was the biggest gap in the member experience.
The Opportunity for Credit Unions to Leverage Data
Credit unions can start by gaining a clear understanding of their existing data – what it is, where it’s stored, and how it’s used.
Transactional data is the most abundant source. The key is to pair it with demographic information from the member information file and elsewhere. Collectively, information on loan balances and histories, account balances, mobile app usage, loan applications, and ATM or in-person transactions can reveal valuable trends that drive messaging, marketing, and more.
Here are a few of the benefits of using credit union data more strategically.
Connecting the Dots
Information stored across various disconnected databases is inefficient. For members who expect brands to have a complete understanding of the relationship across channels and functions, this can be a source of frustration.
By connecting data across your credit union, you can have more unified and complete member profiles, better marketing segmentation, and a clearer understanding of member behavior.
Maximizing Data Insights
With investments in dynamic analytical tools, your credit union can identify macro trends in members’ behaviors. You’ll understand the characteristics that drive decisions around spending, saving, and applications for financial products.
For example, data on channel usage will provide insights into which members prefer to use in-person services or digital apps. You can pinpoint members with specific needs and interests and push product services, such as targeted savings strategies or education-based resources, to those groups.
Tying behaviors to demographic information such as age, gender, location, income, relationship status, and household size helps create more in-depth profiles of ideal members. With better segmentation, you’ll be able to fine-tune and personalize marketing and messaging to relate best to each member type.
Strengthening Member Relations
One of the greatest differentiators for credit unions is the personal touch they provide, with members having close relationships, receiving personal attention, and gaining access to products and services that meet their needs.
Credit union members likely expect that staff, across channels, have access to their accounts, transactions, and member service histories. With sound data policies and procedures in place, you can deliver on and exceed those members' expectations.
Understanding and Connecting with Customers Using Data
Customers turn to credit unions for financial products that support major purchases such as homes, cars, and education — some of the most important financial components of their lives.
Historically, credit unions have been seen as warmer, community-focused financial institutions deeply invested in their members’ needs. Financial institutions that understand the needs of their members will foster deeper, more meaningful memberships and increase their attraction to younger members.
One way to do so is to partner with fintechs like Spave. We partner with credit unions to provide value-added products and services that spur savings and philanthropy. When members download the Spave app, they can connect it to any and all of their financial institutions and accounts — checking, savings, credit card, and all the rest.
Spave allows users to add a set percentage to each purchase, much like a tip. The extra percentage is sent to their savings account while a separate percentage is sent to a charitable organization of their choice. Members can also round up totals or initiate one-time contributions to their savings and charitable interests.
With SpaveLink, credit unions that partner with us will gain access to high-value data that shows how users are saving and giving within the app. The insights will include whether they are using rounding (typically younger members) or set percentages (older members).
With more data on member behavior, your credit union will be able to better tailor communications and new products and services that members are seeking.
To learn more about partnering with Spave, contact us today.