The Decision Maker

Making a Difference with Data at Our Community Credit Union

Posted by Mark Portz on Oct 19, 2017 1:23:10 PM

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In the recent BIGcast, Analytics as The Fuel for Innovation – Implementing Analytics at OCCU, Andrew Bertrand, Data Analyst at Our Community Credit Union (OCCU) in Shelton Washington, discusses his role as a data analyst, getting started with data analytics, and data pooling for predictive analytics.

Getting Started with Analytics at OCCU

In the podcast, Andrew explains that prior to installing OnApproach M360 Enterprise, OCCU, a credit union with $360 Million in Assets, had an ODBC connection to their core system. It was a hassle to obtain data, and it didn’t meet the growing needs of a data-driven organization. Andrew realized that he could not possibly perform any predictive analytics without obtaining the history of member transactions.

After briefly (and in Andrew’s words, “foolishly”) considering to build their own data warehouse, Andrew decided it would be an inefficient use of time and resources. As John Best describes, for a financial institution to build their own data warehouse from scratch, is like building a “house of cards” as it has to be rebuilt repeatedly as elements are added and improvements are made.

After evaluating their options, Our Community Credit Union selected OnApproach M360, not only because of its capabilities and cost savings, but also because of its scalable and forward-looking design. A major advantage Andrew has found, thanks to the standardization of data, is the ability to collaborate and share queries very quickly with other credit unions. As he states in the podcast in regards to the CUFX standardization on his data warehouse platform, “I can share a tableau workbook that I created. I can just send it to somebody over at Red Canoe Credit Union or another credit union. They can open it up, run the query and have it work for them. It’s like plug and play.” For a number of reasons, credit unions don’t typically have the ability to communicate and collaborate because of their disparate, and different data systems and definitions, but there are huge benefits to be gained when credit unions can connect and build efficiencies across core and ancillary systems.

A True Credit Union Success Story

When Our Community Credit Union (Simpson Community Credit Union at the time) discovered that the Simpson Mill, a major business in the area that employed the credit union’s top SEG, would be closing down, OCCU decided to follow their mission and take action. Andrew dug through the data to determine which members worked for the company (nearly 400), and calculated loss given default, and probability of default knowing these members are losing their primary sources of income. He then used data to create an environment risk model, which was set aside in the case every single loan would default. He then calculated how the model would shift as these members find new employment, or move on to under-employed positions, etc.

Throughout this process, the data allowed Our Community Credit Union to reach out to members, help them with any questions, and tangibly serve the community. As a result, OCCU managed to retain all of their members, despite the financial hardships they may have been facing. On top of everything else, this effort painted a positive image for Our Community Credit Union and improved member satisfaction.

To listen to the entire podcast, visit: 

Developing a Data Driven Culture - Download the Case Study

Topics: Data Analytics, Case Study, Podcast