Removing Member Friction with Data Analytics

The key to improving and transforming your credit union lies in gaining actionable insights from the best data. When employed effectively, it results in a new kind of lead generation, a different approach to cross-sell, better life event marketing, and more.

Members engage with you because they trust you with their financial life. In return, they expect you to know them and understand their needs. This means you must provide an experience that meets those needs at the touch of a fingertip.

Unfortunately, this harmony can easily be derailed by member friction – pain points that can erode even loyal relationships. The most common areas of friction are poor online experiences, frustrating and lengthy processes, holding on the phone, lacking or inconsistent information…just plain time-wasters. Here’s a common one: check holds, especially via remote deposit capture. The member rarely wants the entire amount they deposit; yet, many credit unions do not make all of the funds available upon deposit.

The Right Tools and Data

As with any job, the right tools make it easier. Removing friction at the credit union goes a long way to removing member friction. A great example is the real-time insight dashboard that makes up-to-date, understandable data easier to access. With the right tool, no one has to wait on IT to deliver the data. It’s self-service – just click and understand.

This “right tool” needs fuel, and that is the “right data.” Your credit union has an incredible amount of data to eliminate friction. See the image at right.

I like to say that credit unions have access to more big data than Amazon. Sure, Amazon knows more than a bit about your purchase behavior and likely has access to info about your creditworthiness. But that's nothing compared to the information credit unions have: You know the kind of car members drive, home they live in, age, income, and even their purchase habits (where they eat, shop, and play).

When you can access this level and volume of data, you understand more about the member and can understand why, for example, a member is stopping at a home improvement store. There’s more to know than the obvious loan opportunity. This is part of holistically understanding the member. Did they need a new hose, or a kitchen remodel? Are they downsizing, heading for retirement, or expanding for growing family? Each of these would inspire a different conversation with the member about their financial future.

Ultimately, credit unions want to make life better for members. This vast array of data offers credit unions the opportunity to remove member friction. Best of all, data analytics can help you earn the trust your members value so much, so you can fill their needs today and tomorrow.

Anne Legg is Director of Market/Client Strategies for AdvantEdge Analytics.