SAN DIEGO-Credit unions are already armed with the data they need to improve their bottom lines, but Theresa Benavidez says too few recognize what they have.
Benavidez, president of Corelation, Inc., told Credit Union Journal that from a core processor's perspective, data mining can be an "untapped oil reserve" of member information that can be leveraged to address members' specific needs-which she said ultimately adds "tremendous value" to the CU.
"Data mining analyzes information from different perspectives and summarizes it into useful information, which can help increase revenue, cut costs, or both," she said. "This practice allows credit unions to review data from a myriad of angles, categorize it, and outline identified relationships."
As a result, Benavidez continued, CUs can find correlations or patterns among a "plethora" of fields to develop the solutions necessary to better serve their members. She said today's top core processors are "overflowing" with member data that can help create new products and services for CUs, including banking wvia mobile, in-branch or online. The data can also identify where current solutions are not being used by members.
"A core processor that can integrate this information with a stockpile of third-party technologies is invaluable to a credit union, enabling specific information to be gained for cross-sell efforts, marketing messages, new products/services development, or simply educating members on how to better manage their finances based on their current circumstances," she said. "Simply put, data mining equals increased value."
