I recently attended a seminar at which John Best, CEO of Best Innovation Group, presented on the topic of mobile technology and payments. A key takeaway from the presentation was his explanation of why many technology implementations fail.
Supreme Court Justice Potter Stewart famously said about obscenity, "I know it when I see it". This often seems to be the case with many credit union decision makers when asked to define Business Intelligence (BI) requirements.
Consider this common scenario: an innovative credit union executive champions the BI concept. The executive points out all the flaws in organization’s current reporting and analytics. Then, showing examples of how BI is revolutionizing performance in other industries, secures budget dollars for a BI initiative.
Meeting the rapidly changing data requirements necessary for today’s economy and allowing credit unions to adapt.
“Unity is strength... when there is teamwork and collaboration, wonderful things can be achieved.” –Mattie Stepanek
The credit union industry (or credit union movement as it’s often referred to) is probably one of the most collaborative industries in the United States, if not the entire world. Unlike other organizations, credit unions share ideas and even their “secrets.” They truly care about the welfare of the industry and its millions of members. It’s great! Collaboration benefits credit unions in several ways but one way, in my opinion, presents the biggest opportunity. Big Data and Analytics.
When we talk to credit unions about their plans for big data/analytics we try to explain that the word “data warehouse” is a loosely defined term and that a true enterprise data warehouse requires a significant amount of planning and a robust architecture to meet the needs of the users. The architecture we have chosen for our OnApproach M360™ data model is the star schema developed by Ralph Kimball.
A frequently asked question in the credit union movement is, “what is the data most credit unions have that they should be gathering, monitoring and reporting?”
In short, all of your data can be a critical component in gaining valuable insight into your members and optimizing business practices. The big question is . . . How accessible, comprehensive and useful is the data?
According to the whitepaper “Amazon vs Borders: A Lesson for Credit Unions”, written by Founder and CEO of OnApproach, Paul Ablack, Amazon has thrived on fostering loyal and intimate relationships with its customers. These relationships are the cornerstone of Amazon’s success. With utilization of data analytics, Amazon has information readily available to pursue and enrich these relationships.
In my previous blog, 3 Steps to Build Business Analytics in Mortgage Lending, I explained the steps a credit union should take to implement Business Analytics (BA). A great entry point for credit unions to begin establishing BA is mortgage lending. Once BA has been implemented, opportunities for deepening the cooperative culture of a credit union arise. Cooperation is the DNA of the Credit Union Movement. BA gives credit unions the ability to establish clear communication to strengthen their cooperative-oriented culture. Data-driven decisions and effective communication delivered by BA (embedded in business processes) will reinforce the cooperative strategy of credit unions.
“…wallets may generate substantial data that will lead to better member insights and possibly also profits.” – Kirk Drake, founder and CEO of Ongoing Operations, LLC
In a highly competitive financial services industry, credit unions are turning to mobile to survive and meet the ever changing demand of members. Credit union members are flocking to their mobile devices to do everything from check balances to deposit checks because they find it more convenient than the “old way” of banking. As credit unions realize their members demand to go mobile, they begin to shift their focus from expanding physically to expanding virtually. Investments in mobile applications will likely dominate credit unions’ budgets in the coming years as they attempt to stay competitive. One of these investments will likely be enhancing mobile payments. Mobile payments will not only make life more convenient for credit union members but it will change the way credit unions interact with their members as they use Big Data and Analytics to gain better member insights.
Congratulations! You’ve been tasked by your credit union’s leadership team to plan out the first steps of a Business Intelligence (BI) initiative.
The good news is your organization is convinced that performance improvement will be driven by better, faster information. Now for the hard part: where to begin?