Financial institutions collect huge amounts of data, and the savviest among them are constantly refining ways to extract value and insight from that treasure trove of information. Credit unions are no exception. At a recent executive roundtable hosted by Callahan & Associates, credit union leaders shared analytical pitfalls and progress with one another. After the event, a few agreed to speak on the record about the most impactful takeaways of their analytics journey and what they might do differently if they had to do it all over again.
Start Small And Be Patient
Alex Melnik has been with BCU ($5.9B, Vernon Hills, IL) for 12 years, the past five as senior director of data and analytics.
What’s the most impactful thing you’ve accomplished so far as a result of analytics?
Alex Melnik: We’ve been able to put together a robust practice that drives millions of dollars in growth initiatives annually. It’s not really a single initiative but rather a program. We’ve seen a lot of success with introducing machine learning into intelligent transaction analysis campaigns. We also have some collection models that have saved a lot of effort and increased the output of our collections teams.
What’s one thing credit unions can do to improve how they use analytics?
AM: I have three recommendations: Make the investments into capacity gradually, give credit to the data teams for the support they provide to each business line to ensure continuing investment, and don’t skimp on foundational areas like data governance.
If you could start your analytics journey over again, what would you not do?
AM: Try to do too much at once. Be patient and don’t try to bite off large chunks of work at a time.
Connect Data To Outcomes
Jennifer Flexer is vice president of data, governance, and analytics at CEFCU ($7.8B, Peoria, IL). Flexer has been with the cooperative for more than 25 years and served previously as its assistant vice president of market strategy and analytics. CEFCU created this new VP role approximately 18 months ago.
“I’ve always had a huge appetite for data,” Flexer says. “Together with a team of eight, I’m now responsible for building and maturing CEFCU’s data analytics and governance programs.”
What’s the most impactful thing you’ve accomplished so far as a result of analytics?
Jennifer Flexer: I’ve been astonished and delighted to see how much impact the right effort at the right time can have on a member’s journey.
For example, CEFCU works with a fintech that takes a weekly anonymized transaction dataset and uses AI to identify checking accounts at risk of attrition based on spend behavior. We set up a simple, low-cost intervention we send weekly that allows targeted members to provide feedback and opt-in for follow-up.
If I showed you the intervention, it might not look like much. But, because of who gets it and when it occurs in their journey, the impact is considerable. Over the four years we’ve had this workflow in place, we’ve seen a 70% decrease in attrition among the intervention group as compared to a control group, resulting in a ROI of nearly 400%.
“It’s absolutely critical to clearly connect the data program with tangible business outcomes. That means for every use case that comes in, the team is working with stakeholders to identify the business outcomes they’re looking for.”
What’s one thing you’d recommend credit unions do to improve how they use analytics?
JF: It’s absolutely critical to clearly connect the data program with tangible business outcomes. That means for every use case that comes in, the team is working with stakeholders to identify the business outcomes they’re looking for. It’s a healthy, interactive process.
We track our data use case portfolio with the DataWorkbench by XenoDATA. This platform supports real-time reporting and makes it easy to collaborate with stakeholders on data governance activities like cataloging.
As the data team’s success has grown, so has demand. This approach allows us to prioritize efforts and, crucially, share the value of what we’ve accomplished. That transparency and accountability, in turn, creates alignment and stakeholder buy-in — and as a result, momentum for the data program.
If you could start your analytics journey over again, what would you not do?
JF: I wouldn’t wait so long to dig in. I loved science and math growing up. Working in analytics and tech feels like coming home again.
Diverse job titles and responsibilities are helping leading institutions leverage data to make better decisions. Read more about CEFCU’s approach in “6 Ways To Structure An Analytics Role.”
Consider The Holistic Relationship
Razi Qadri joined Lake Trust Credit Union ($2.6B, Brighton, MI) as its chief operating and information officer last July after 12 years in a similar position at another large Michigan credit union. Shubhangi Pararha joined Lake Trust as its business intelligence manager in June 2022.
What’s the most impactful thing you’ve accomplished so far as a result of analytics?
Razi Qadri/Shubhangi Pararha: Four specific areas of real impact include our branch dashboard, branch forecast analysis, Easy Cash loan, and predictive analysis.
What’s one thing credit unions can do to improve how they use analytics?
RQ/SP: We recommend using your data warehouse to improve your analytics in two areas: the holistic member relationship and the life of loans.
For larger banks, this data is typically integrated within their core systems. However, since many credit unions rely on CUSOs for mortgage processing, commercial lending, credit card services, etc., we must aggregate data from multiple CUSOs to build a unified view.
If you could start your analytics journey over again, what would you not do?
RQ/SP: Data structure was already in place when each of us joined Lake Trust, but if we were to start the journey again, we’d make sure we design the whole environment with the right data elements. It has been corrected but took a lot of work and effort.
Lake Trust is turning data-driven decision-making into the standard operating procedure. Read about its analytics areas of impact, best practices, and more in “A Peek Behind The Analytics Engine At Lake Trust Credit Union.”
Learn From Failures
Jamie Anderson has been with State Employees’ Credit Union ($57.2B, Raleigh, NC) for nearly 24 years and serves the nation’s second-largest credit union as its senior vice president of management analytics.
What’s the most impactful thing you’ve accomplished so far as a result of analytics?
Jamie Anderson: Our biggest accomplishment is actually a precursor to good analytics, and that’s consolidating and making good data available for analysis and reporting across our credit union. It’s the foundation of our ability to deliver insights and answer questions. The team has developed ETL (extract, transform, load) processing and a data model that scales across different use cases and business lines to make the most of our data resources.
What’s one thing credit unions can do to improve how they use analytics?
JA: Ensure you have roles at the enterprise level and embedded within business units dedicated to data and analytics work. The groups must work closely together with management and subject matter experts to scale data and knowledge for the benefit of the entire credit union.
“I’m not sure there’s anything I wouldn’t do again because many times you learn as much from failures as you do from successes.”
If you could start your analytics journey over again, what would you not do?
JA: I’m not sure there’s anything I wouldn’t do again because many times you learn as much from failures as you do from successes. You also can’t be too afraid to fail at something or you might not attempt it in the first place.
Challenge The Status Quo
Esther Edevold has been with University Federal Credit Union ($4.1B, Austin, TX) for the past 18 years, the past two as the capital city co-op’s vice president for insights and innovation.
What’s the most impactful thing you’ve accomplished so far as a result of analytics?
Esther Edevold: Leveraging analytics has significantly enhanced our member experience. For instance, last year, we introduced a system that allows our members to access their funds sooner, which has consequently reduced calls to our contact center. We also identified key elements to engage with members right at the account opening stage, thereby deepening their relationships with us.
What’s one thing credit unions can do to improve how they use analytics?
EE: Be curious and always challenge assumptions or the status quo. Our most valuable insights have come from questioning our assumptions about our members and letting the data reveal the true story.
If you could start your analytics journey over again, what would you not do?
EE: I would ensure I was more assertive about sharing our data findings. I would look for additional ways to communicate these insights to stakeholders to better anticipate and mitigate potential impacts.
Interviews have been edited and condensed.
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