JACKSONVILLE, Fla.-The best investments for credit unions right now are in data analytics, small business solutions, risk management and professional services, according to Jerry Nissen, SVP and general manager-real time solutions for FIS.
"Credit unions are awash in data and devoid of actionable information," he declared. "Investment in data analytics would allow credit unions to focus on three critical areas: improving service to existing members through a deeper understanding of the products and services they use today, providing a clearer picture of product profitability and therefore allowing for better informed decisions regarding future investments, and, three, improving operational efficiency by concentrating on specific areas that no longer are within normal ranges."
Nissen also recommended CUs maximize revenue potential not through an assessment of fees but through investment in niche market solutions-in particular, small business solutions. He predicted small businesses will continue to sustain the economic recovery and suggested credit unions are in a "unique position" to fill the credit and account service void in this market that has been created by the withdrawal of regional and nationwide banks.
In the comprehensive risk management space, Nissen said the regulatory burden will continue to "drain resources and distract management."
"Investing in co-sourcing a comprehensive risk-management solution with a trusted outside partner will allow credit unions to achieve a higher degree of compliance faster than attempting to do this through internal resources alone," he said.
As for professional services, Nissen said such investments would assist CUs in maximizing system capability and improve efficiency. They will reduce potential internal friction between business unit needs and IT limitations, he added.
