The Decision Maker

Top 5 (and 5 most missed) of 2017: Credit Union Big Data and Analytics – Part 2

Posted by Mark Portz on Dec 21, 2017 12:07:00 PM

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As another exciting year in the credit union industry comes to a close, it is a good time to reflect on everything we have learned throughout the year, and determine how to best prepare for success in 2018. It is an amazing time to be a part of the credit union movement as the entire financial services arena is changing before our eyes, and there is incredible potential for the movement with increasing collaborating and data analytics. As we look back on 2017, here are several of the industry’s favorite articles relating to credit union big data/analytics (and some other articles you may have missed) from OnApproach's blog, The Decision Maker. This is Part 2 of 2 and features the top 5 articles you may have missed in 2017. Click here to see Part 1. Enjoy!

1. Don’t Miss the Boat – Why Credit Unions Need to Digitally Transform Now

Why-Credit-Unions-Need-to-Digitally-Transform-Now.jpgThe term “digital transformation” has been a very hot topic recently, creating new conversations and products across a wide range of industries. This chart below, via Google Trends, displays the worldwide popularity of the phrase “Digital Transformation” in web searches since 2004. As shown in the graph, after remaining stagnant for over a decade, the term’s popularity has exploded in just the last year or so, raising questions about what this means, and how it will impact your organization.

An accepted definition for digital transformation is, “the application of digital technologies to fundamentally impact all aspects of business and society”. The important part of this definition is to realize that digital transformation does not mean just building a website, a mobile app, or obtaining a data warehouse. It means using your digital technology to transform your business processes. It means shifting your company culture to take advantage of your digital data to make informed data-driven decision and stay ahead of the ever-changing expectations of your members or customers.

Read the entire blog here:

2. Reports of Reporting’s Death are Greatly Exaggerated

Reports-of-Reporting's-Death-are-Greatly-Exaggerated.jpgIn the world of credit union data and analytics, there are hot topics galore:

Big Data

- Data Mining

Predictive Analytics

- Machine Learning

These subjects fall under the trendy term, Data Science. Yet, when it comes down to the practicalities of everyday business at a credit union, plain old reporting still provides the most information used for decision making. An O’Reilly/TIBCO Jaspersoft e-book released in March 2017 quotes a recent InformationWeek survey that found 88% of organizations are using reports while only 34% use data science.

Are these organizations hopeless troglodytes who just don’t get it? The answer is an emphatic, “No”.

While credit unions must embrace innovative data and analytics techniques, reporting is and will remain an important part of their overall decision support strategy. Yet, reporting is undergoing an evolution that is necessary for it to remain relevant and useful over the coming years.

Read the entire blog here:

3. Credit Union Cooperation: Google Maps Style

gps-maps-image-for-web.jpgGoogle Maps has revolutionized how we navigate our lives. It saves us from headaches caused by unnecessary traffic and other challenges in traveling. My journey from work to home has many different routes depending on traffic patterns. During days with slower traffic (i.e. - winter snowstorms), the Google Maps recommended route will change every 5 – 10 minutes. Using an analytics engine that informs me of the best route allows me to spend extra time on more important things in life. Credit unions have a similar opportunity when navigating their institutions into the uncertain future of financial services. Establishing an industry standard analytics platform will enable credit unions to cooperate on analytics and guide them to their desired destinations.

Analytics Platform

Google Maps uses complex algorithms and thousands of integrated data sources to provide users a clear path to their destination. Utilizing a common data platform to conform the data for its users provides a unique opportunity to share data throughout the globe. This platform empowers users to navigate an ever-changing world. The credit union industry needs to embrace a similar type of analytics platform for all users to enable collaboration throughout the industry. Speaking the same data language is crucial for the success of credit unions throughout the world. With a common data platform, applications can be designed for credit unions regardless of their software systems feeding the data. When someone develops an application, it can be used throughout the industry without a need for costly (and time intensive) implementation. A majority of time spent on application development is mapping data. As credit unions adopt an industry standard analytics platform, developing APIs (Application Program Interface) from an analytics platform will become much easier, which will enable credit unions to navigate their journeys cooperatively.

Read the entire blog here: 

4. Get Your Game On: Criteria for Evaluating Analytics Tools

Get-Your-Game-On-Criteria-for-Evaluating-Analytics-Tooks.pngForward-thinking credit unions are tuning their internal data for improved decision making. Previously, data was locked up in multiple, “siloed” transactional systems. Now, innovative credit unions organize their critical information within integrated data warehouses.

 However, once the data is made available, how does a credit union make best use of it? An apt analogy is the XBOX and other gaming platforms. The game console by itself is a marvelous piece of technology. Yet, without the games, it is not very useful. By the same token, video games without a console are useless. Put the two together and wonderful things happen for video game aficionados.

How do wonderful things happen with an integrated data warehouse? What are the “video games” in data warehouse world?

There are an abundance of “games” in the form of business intelligence and analytics tools. These are software systems that turn data into information. Choosing a tool from among this abundance of options is a challenging task for most credit unions. Fortunately, there are resources to assist in choosing the best choice for a given organization.

Read the entire blog here:

5. Whose Data is it Anyway?

Whose-Data-is-it-Anyway.pngBy now it’s clear, data and data analytics is an extremely important growth area for credit unions. Behind it all, there is one main motive – monetizing data to its fullest extent.  There is tremendous value to be unlocked from data, and with it, tremendous money to be made by monetizing it.  However, the burning question in the credit union world is: Whose Data is it Anyway?

There are a lot of “solutions” out there to help credit unions leverage data to their fullest extent. Whether it be an analysis on the loan portfolio to increase net interest margin or a next best product analysis to increase the number of products per member.  All are extremely beneficial to the credit union’s top line, bottom line, and members.  Yet, how we get to these analytic outputs is extremely crucial.

There are several different options with pros and cons to each. Instead of going into detail of each path a credit union could take, the focus should be on what’s important – the data.  It is easy to find a company that has a “solution” and wants “help” analyze your data but the fundamental question to ask is: “Do they want to help me (my credit union), or do they just want my data?”.

Read the entire blog here:

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