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PREDICTIONS: CREDIT UNIONS WILL SEE MORE VALUE IN DATA & PARTNERSHIPS IN 2019

PREDICTIONS: CREDIT UNIONS WILL SEE MORE VALUE IN DATA & PARTNERSHIPS IN 2019
Posted: Jan 31, 2019
Comments: 0
Author: Lou Grilli

At a time of year when analysts and bloggers are posting their predictions for the year ahead, Trellance’s President & CEO, Tom Davis weighed in with his predictions for 2019 in two recent CU Today articles. Read them here and here.

His views are based, in part, on a survey conducted amongst Trellance members on the areas they will focus on and invest in for 2019.

Data Analytics

According to Tom, “The biggest payment trend we believe we’ll see among credit unions in 2019 is using data analytics to collect, normalize, and warehouse payments-related data and member data together …”. He listed several things that credit unions can achieve by using this strategy:

  • Predict member behavior
  • Enhance member financial wellness
  • Develop and enhance tailored product offerings to better meet members’ needs
  • Identify member profitability to drive credit union profitability and financial health overall
  • Develop comprehensive rewards programs to influence member behavior
  • Get ahead of fraud
  • Automate processes to reduce exceptions and increase decision-making accuracy 

 

Tom also noted that “Interestingly, there is no correlation between the size of the credit union and the size of investment in data analytics. Big and small credit unions alike see the need to make better use of data from their core, debit and credit processors, loan origination systems and external data sources. Several credit unions did note that the budget for data analytics is not a one-time item but represents a three-to-five-year commitment of building out systems, software, data warehouse, and staffing.”

 

Partners Not Vendors

Additionally, Tom predicts that credit unions will view their relationships with third-party providers more as partnerships rather than vendor-client relationship.

“Another prediction we are making, based on a trend we are seeing among our CUSO members is a more concerted effort to view processors and third-party providers as partners rather than vendors. This means going through an RFP process rather than letting contracts auto-renew. One of the capabilities credit unions are looking for in their processors, and third-party are best-in-class APIs to access data directly, bringing that data into a credit union-owned data warehouse to create dashboards and more sophisticated analytics. Of course, other criteria such as integration with core, reporting, price, uptime, fraud protection are equally important considerations. “

As is customary, this time next year we’ll see how Tom did on his predictions.

If your plans for 2019 include using your data to inform better business decisions and creating better member experience, e-mail us at info@trellance.com to find out more about our data analytics solutions.  

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Lou Grilli

Lou GrilliLou Grilli

Lou is the AVP of Product Development & Thought Leadership at Trellance. In this role, he is responsible for managing the organization’s product portfolio, as well as providing leadership on industry trends related to data analytics and payments.

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