Unlocking the Power of Data to Provide World-Class Credit Union Member Experiences
Examining use cases and benefits of a credit union data lake
The challenges credit unions face today
The US credit union system’s net worth has continued to increase in recent years and was $232.9 billion as of 2022. At the same time, there’s been a continued decline in the number of US credit unions due to industry consolidation via mergers and acquisitions:
One of the drivers behind this trend is the need to keep up with consumers expecting convenient, hyper-personalized digital experiences that are increasingly being offered by big banks and fintechs. Credit unions need to not only provide the best rates but also simple, seamless, personalized experiences on each member’s device of choice.
Being historically focused on in-person physical experiences, credit unions often face a higher up-front investment in digital transformation due to aging technology that can no longer keep up with today’s needs for member insights, business intelligence, and regulatory reporting requirements.
Many credit unions also face organizational silos and technological fragmentation from a multitude of third-party applications used for different functions across marketing, lending, and member services, among others.
“Data silos, dispersed data, and no classification are essential to highlight [as issues],” as one credit union technology leader shared with us. When people lack access to data inside a credit union, it can result in leaving money on the table and a less-than-delightful experience for your members.
Since member retention and success is one of the big focus areas today for most credit unions, the question becomes: “How can credit unions remain competitive while staying focused on their members?”
It starts with unlocking the power of the data they already have to create a seamless, world-class member experience.
The modern credit union data lake
Rather than thinking holistically and focusing on significant up-front IT investments, why not start small, surgical, and within the lines of business that are already creating value for your members.
Data in many credit unions today is dispersed, disorganized, and hard to find, residing in a variety of systems and locations. A data lake can provide a powerful platform for credit unions to grow, manage, and protect their core business. Credit unions can invest in building one centralized location to serve as a foundation for storage, analysis, and innovation for nearly every line of business and corporate function.
One credit union IT executive said, “Data is one of the most valuable assets to any organization. Critical business decisions need to be made from facts.”
As illustrated below, the value unlocked is also exponential for your members and can include benefits for every product and service you provide.
A data lake can further unlock efficiencies via standardization of common data elements that are easily accessible and reusable across various applications.
What’s more, it can complement other strategic technology decisions the credit union is investing in.
As one credit union technology leader shared, “Running your data in the cloud offers the flexibility and scalability to keep up with ongoing changes and growth that most credit unions struggle with.”
Where do I get started?
It’s not as hard as you may think.
- Data assessment
Conduct an assessment of your existing data, identify the highest priority use cases to better understand what data you still need, and explore where it can be used to drive value for your members and your business. - Data workshop
Get on a path toward a data lake by conducting a data stakeholder workshop to reduce silos and get alignment within your organization about what analytics you need, what a data lake should look like, and how to move your data into one. - Data training
Begin training yourself, your lines of business(es), and your workforce on the potential of your data and how to unlock the power of your data investments.
These are just a few of the ways credit unions can get started on a path of unlocking the power of their data and building a world-class member experience. Wherever you are in your journey, we’re here to help.
Slalom is a global consulting firm that helps people and organizations dream bigger, move faster, and build better tomorrows for all. Learn more and reach out today.
