In my last blog, I talked about cleaning up data. Ugh. It is hard work, and I was primarily focusing on core system data. Today I want to suggest thinking about new ways Credit Unions can use existing data.
Most Credit Unions have a heartfelt mission of supporting member’s financial well-being. Yet in some ways – we simply do not engage members enough. What! Hear me out – I’ve got an idea…
Credit Unions can use their data in creative ways to be more relevant to our member’s lives. Let’s take the example of a car loan. We spend a lot of effort and money on “selling” the loan. We offer great rates, we make the buying process convenient, and we spend hundreds of thousands of dollars on systems that will make the loan application process easy with features like automatically creating their membership or integrating with online banking. OK, we got them, they purchased the car and we closed the loan. We did it!
That member now has a 60-month loan and, if they pay on time, we’ll send them their pink slip in 5 years. For many Credit Unions, this scenario is the extent of the relationship between the credit union and the member’s car loan.
It’s all about the data.
What if we used the data we have about car loans to make relevant offers at relevant intervals for something that a member wants? (I know, you may be saying you already make offers at regular intervals, but staying relevant means offering something the member wants.) In the case of a car loan, how about offering a credit card at 18 months (when cars typically need new tires) and double or triple the points off on tires? For an even sweeter deal for the member, work with a box store or a local tire shop to provide even deeper discounts.
The Credit Union gains a more engaged member and credit card revenue. The member gains a deal on a credit card and a discount on something they know they need to purchase soon anyway. The local tire shop gains more awareness and local business.
Now, if you are an even more entrepreneurial community Credit Union, you can offer business customers faceless data. In the auto loan example, if the tire store could see how many tires your members purchased over the last year, they could use that data to improve their marketing efforts and the timing of their advertising and discount offers. They would not be able to see individual transactions, only the aggregate information on purchases.
Now you have an engaged business member that is only able to get that information from your Credit Union.
The digital journey requires us to find creative and innovative ways to use data to help our members while becoming more engaged in their lives, not just their financial lives. Becoming more innovative with information is a transition that Credit Unions must embark on to continue to be relevant!