How can CUs of all sizes best get on board with this new trend?
By Lisa Hochgraf
Sometimes I get a single press release about a topic new to me and that prompts a story in CUES' publications. Other times, I suddenly see a new topic everywhere. "Big data" is everywhere. And I'm wondering if it marks an opportunity for CUs to collaborate. For the uninitiated, big data is a broad term for data sets so large or complex that traditional data processing applications are inadequate for making sense of them. Getting and managing big data may be easier for big organizations. So I guess it wasn't a huge surprise when I got a press release saying that $13 billion BECU, Seattle, had signed with INETCO Analytics to acquire rich transaction data from the CU's ATM network. The goal is to gain on-demand visibility into member analytics, as a stepping stone to ensuring delivery of the best member experience possible. “INETCO Analytics effectively shrinks our member transaction data gathering and analysis time from weeks down to minutes—which allows us to make decisions based on timely and comprehensive cardholder analytics," says BECU ATM Channel Manager Shirley Taylor in the release. But what about smaller CU shops? A certain size may be helpful in generating and analyzing big data, according to Ryan Rackley, a director with CUES Supplier member and strategic provider Cornerstone Advisors, Scottsdale, Ariz. "There are lots of $1.5 billion-plus credit unions out there that run their own data warehouses, which could also be called big data," he says. "The best data warehouses allow for conversations with the data in near or real time. BECU bought [INETCO] so it could ask its ATMs how they are being used, and how to drive member benefits and dollars through them. I would call this a conversation." It does look like the vast majority of CUs may be slow to enter into this conversation--on their own, at least. "Data should provide credit unions with an exceptional opportunity to understand their markets and customize offers effectively—after all, who knows more about their members?" suggests CUES' soon-to-be-released payments scenarios report (subscribe to the CUES Advantage e-newsletter for updates on when this will be available). "But most credit unions have not availed themselves of this opportunity." In this moment, I can't help but think about industry start-up CU Collaborate, dedicated to helping CUs work together to make the most of available data. On a roll, CU Collaborate recently reached its $40,000 Kickstarter campaign goal for Credit Union Match, designed to help consumers find CUs they can join. Can big data be a reachable tool for small CUs working together? Your thoughts, please in the comments.
Lisa Hochgraf is a senior editor for CUES. Read an article by Cornerstone Advisors about how CUs can leverage small data. CUES' strategic provider for technology services, Cornerstone Advisors is slated to write more about big data for credit unions for the August issue of Credit Union Management magazine. Stay tuned!
