With data overload, where do you begin? Discover three steps your bank or credit union can take today to leverage data and analytics for growth.
Thanks to the current digital age, banks and credit unions have a wealth of insights into their customers and members. However, many still need help leveraging that data to grow revenue. They face the challenge of DRIP—an apt acronym for being “data rich, information poor.” The opportunities missed by not using the quantity of data available to financial institutions now are like a dripping faucet, with valuable account holder insights constantly swirling down the drain.
The good news is that there are solutions that can help bring these insights to light. If you’re ready to stop letting your data slip away, here are three steps you can take today.
Solve for X.
Having access to data isn’t really the problem. For many banks and credit unions, the struggle is that they don’t have a clear understanding of what they need to address. So the first step in your data and analytics journey is to determine what KPIs will help your institution grow. Whether that’s member acquisition rates, customer retention rates, or loan default rates, prioritize KPIs aligned with your institution’s overall strategy and goals for growth.
A strategy-first approach to leveraging data and analytics for growth provides financial institutions with three major advantages: it’s action-oriented, which means it focuses on identifying and solving the most critical problems; it can deliver quick and tangible results; and it can be executed swiftly and cost-effectively because your team can avoid wasting time, effort, and resources on gathering irrelevant data.
Use the right tools.
It’s no secret—the right tools make all the difference. The same is certainly the case when leveraging data effectively. To make the most of your data, you need to invest in the right tools to gather, organize, and analyze it effectively. And there are ways to do this without breaking the bank (pun intended). Here are some examples:
- The trusty spreadsheet (for those needing the basics): it’s as reliable as pen and paper. It’s a go-to used today to perform calculations and create charts and graphs to visualize data.
- Business intelligence software (for more advanced skills): it’s designed to help organizations analyze their data and make better decisions, and many are specifically for smaller institutions.
- Data visualization tools (for the more visual learners): tools that can help you create attractive and informative charts, graphs, and dashboards to present your data in a meaningful way.
- Machine learning tools (for those looking ahead): Machine learning tools can help you build predictive models that can be used for risk management, fraud detection, and other applications.
These are just the tip of the proverbial iceberg when it comes to the tools available today that can help turn your data into insights.
Make it a team effort.
Data-driven growth requires a collaborative approach across all departments in your institution. This means breaking down silos and sharing data, insights, and analytics across all teams. Opening up those avenues for information sharing will give your financial institution a complete picture of its customers and operations, enabling you to identify business challenges, make informed decisions, and promote a data-driven culture.
Additionally, many banks and credit unions are bringing together cross-functional teams or establishing a core group to brainstorm potential business intelligence projects that fully use their data and analytics initiatives. These cross-functional teams often include individuals from marketing, finance, operations, and IT departments. By working collaboratively, they can identify key business challenges and develop innovative solutions that leverage the organization’s data and analytics capabilities.
Find the right partner.
If you’re ready to take your institution’s data capabilities to the next level with a one-stop-shop solution to manage all of your needs, you’re in luck—the right digital banking solution can help make all your actionable insight dreams come true. Lumin Analytics is a streaming data and analysis platform that allows your organization to get even more value from our core digital banking solution. With real-time visibility, actionable insights, and advanced automation capabilities, Lumin Analytics helps our customers turn their data into impact. Contact us to learn more about how we can illuminate your success.