The Trellance Data Blog

In the Thick of Disruptive Innovation: Credit Unions and Collaborating for Analytics

Posted by Alex Beversdorf on Nov 6, 2018 12:06:00 PM


In the 3rd episode of the Data Lake BIGcast series, Disruptive Data, John Best speaks with Allied Solutions’ David Hilger and Michael Bryan, Senior Vice President and Head of Digital Strategy respectively. The discussion features a very interesting conversation with Allied Solutions about the drastic changes taking place in the financial services industry. They also discuss their partnership with OnApproach and how the implementation of a collaborative data lake for credit unions will completely change the landscape of the industry.

Technology-Driven Business

The worlds of business, financial services, and even our daily lives are constantly changing because of increasing technological capabilities. One major discussion point lately has been the introduction of autonomous vehicles. Leading the charge are large car manufacturers like GM, Ford, BMW (to name a few) and the well-known tech giant, Google. How would this change the insurance industry and how could big data and analytics impact this massive change? David Hilger explains:

Some say it’s a threat to the individual insurance market. At some point when everyone has an autonomous car, where does insurance fit into that? When people stop lending for cars then they will have to stop worrying about the insurance for the cars. The goal of our product is to make sure that the financial institution is protected if there is an accident. For autonomous cars, it depends on the ownership model. Predictive analytics could provide us with more insight. What type of cars, people, borrowers are a greater risk to the institution? Our client is the institution and that’s who we are trying to protect but there is a whole lot of other things that play into this. We don’t have the perfect insight, but we have the scale of data that can help achieve this.

Meeting Consumers’ Expectations: Not Easy but Essential

There have been successful and unsuccessful stories with the use of big data in the past decade or so. As discussed in the Disruptive Data podcast, a primary example is the clear difference in data integration capabilities across companies like Amazon, Netflix and Domino's, compared to the once promising Blockbuster. Being able to analyze and better understand where consumers’ tastes lie is very important to the financial viability of an organization and the community. Consumers have come to expect excellent, personalized and consistent customer service behavior from the merging companies like Amazon, Netflix and Domino's. Michael Bryan explains:

As a consumer, there is information about you when you call the call center, or when you’re interacting on a website. There is information that other partners and people have that gives you a richer perspective of that consumer. Meeting them when and where they are is important because that’s what people are expecting to be delivered to them by companies like Amazon, Netflix and Domino's.

On the contrary, Blockbuster didn’t utilize their massive amount of data available, and incorrectly forecasted the effect that technology would have on the digital video recorder (DVR) industry. Relating this digital transformation story to the financial services industry, Michael Bryan states, “I think those are some of the big opportunities we are looking at in this space. We must learn how to pick the relevant data, turn it into relatable insights and then eloquently execute to deliver a consistently exceptional experience to all of our customers.”

Diving Into Data Lakes: Get Your Ebook

Strategic Partnership with OnApproach

Allied Solutions has been partnered with OnApproach since 2017, continually strengthening the relationship:

1) Allied Solutions is an investor in the OnApproach CUSO.  

2) Allied Solutions internally utilizes the data platform.

3) Lastly, Allied Solutions is a distribution partner, helping to bring M360 and collaborative analytics to more credit unions across the industry.   

OnApproach’s collaborative nature and vision has attracted and retained Allied’s partnership. The true vision for the credit union industry is to take that collaboration to the next level by improving the quality and scale of data. OnApproach is achieving this through the development of the powerful Caspian Data Lake. David explains in greater detail the benefits that this data lake could provide:

We’ve got scale of a narrow viewpoint (meaning it’s almost entirely within the insurance industry). But it is the other data, whether it be credit union data or the other partners that we work with, that can really bring a much wider view and much wider application of the potential solutions that we can provide… We have lots of data, so do all of the credit unions. And that greater scale of data, which would come from the Caspian Data Lake, is what’s going to allow a larger breadth of products in time. We could combine pieces of data from various sources to come up with unique solutions to either improve the performance of a product or create a new one.

To listen to the entire podcast with Allied Solutions, visit

Stay up to date - Subscribe to our educational blog

More About Allied Solutions

The team at Allied has been working in the financial services industry since 1978. Allied Solutions is primarily a provider of insurance, lending and marketing products to financial institutions. Ranging from bond and property package insurance, creditor placed insurance, guaranteed asset protection, credit disability insurance to accidental death and dismemberment insurance. This widely diversified product mix and long credible history provides them with massive amount of data, perfect for the Digital Transformation era.

Topics: Strategic Partnerships, Collaboration