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The Power of Using Data to Drive Decisions

power lines in purple
By David Walts

2 minutes

Lending leaders know how to combine it with artificial intelligence to further their strategic goals.

Sponsored by SWBC

These days, data is ubiquitous. As consumers, we carry it with us and leave a digital footprint wherever we go. Lending leaders need it, value it, and are able to amass it—but many of them are not leveraging it to its full potential to further enrich their business goals. In this blog, we’ll explore DDDM, or data-driven decision making as a process and how, in conjunction with artificial intelligence, credit unions and other financial entities are utilizing it to develop and drive strategic goals. 

The Value of Utilizing Data

Credit unions have tremendous access to more data than ever from their members. Data is this century’s intrinsic currency. Many credit unions sit on a mountain of data without the necessary mining capabilities to offer a greater personalized membership experience, accurate credit decisions, fraud detection and enterprise risk management. Using AI with sophisticated analytics, credit unions can discover trends within their existing data sets that ultimately lead to better service options for their members.

Leveraging AI to Improve the Customer Experience

Artificial intelligence, AI, or machine learning is increasingly playing an integral role as an innovative solution for credit unions everywhere. Within the financial services sector, credit unions are deploying AI technology in conjunction with DDDM models to drive empirical decision-making that was previously unavailable. 

What does this look like in practice? Many credit unions are embracing AI technology as a predictive modeling tool that attempts to correlate their members’ transactional behavior to provide a clear optic of their overall financial patterns. With the expertise of data scientists within the organization, this information can help a credit union tailor a member-centric model for products. For example, providing spending alerts and trends, offering savings recommendations or product offers could help to strengthen the overall member relationship. 

Get Results with Customer-Focused Analysis

Investing the time to learn more about your members through the use of data is a value-added exercise. Analysis allows your credit union to develop deeper insights about their members’ financial activities. Digital usage gleaned through online activity, websites and mobile apps provide valuable insight into consumer behavior. 

Preferred digital usage by members can predicate how best to communicate effectively with them. For example, do they access their accounts from a mobile app rather than a website? Texts may prove to be the most impactful in those instances.  

Credit unions that adopt DDDM models can realize measurable improvement with their member engagement while helping to drive more informed business decisions. 

David Walts is EVP/operations support for CUES Supplier member SWBC, San Antonio, Texas. Want to learn how Financial Center First increased total funded transactions through self-service channels by 161%? Download our free case study

 

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