Data Analytics Use Cases for Easing Members’ Financial Anxiety and Building Stronger Member Relationships
Credit unions have a long history of helping members during times of crisis. But most of these crises were generally localized in specific regions and communities of the U.S. None of these events though, as devastating as they were, compare to the economic havoc that the COVID-19 pandemic has brought to millions of people nationwide, many of whom belong to a credit union.
With income lost during periods of reduced work or layoffs, credit union members everywhere are feeling the pinch.
Let Data Drive Responses to Changing Member Behaviors
Data analytics helps credit unions better predict member behavior during a time of economic turmoil. Insights from data analytics empower credit unions to proactively respond to and strengthen relationships.
Here are seven ways data analytics helps credit unions directly address member needs in this unprecedented time of economic uncertainty.
1. Members are missing their loan payments – Analytics more rapidly identifies the members who are uncharacteristically late on their payments. Many credit unions now offer skip-a-pay options and fee waivers for a certain period to struggling members. The sooner you identify and qualify these members, the better.
2. Members are withdrawing cash – Behavioral insights from analytics let you know when a member unexpectedly draws cash from their savings, retirement, or CD accounts. Something has changed, and analytics is your cue to find out what and why as well as how you can help.
3. Members who work in specific industries are vulnerable – An analysis of data can spotlight the members who work in industries impacted by the pandemic. The data tell you which members are likely to experience a disruption in income so you can proactively evaluate options to help them.
4. Not all members speak digital – Analytics tells you which members prefer the in-branch experience. These members represent an opportunity to let them know they can still interact through alternative and safer digital channels. Show them how to do that.
5. Members need more spending power – When their debit deposit accounts diminish due to income loss, members turn to other payment methods, such as credit cards. Analytics tells you which members qualify for credit line increases and the amount of the increase based on their credit rating. Typically, over 60% of a credit union’s credit cardholders meet the criteria for a credit line increase.
6. Members’ direct deposit activity tells a story – With so many members experiencing the impact of temporary furloughs from their jobs, analytics can quickly identify those members whose usually predictable direct deposits cease or diminish in frequency. The keyword here is temporary. Those members will likely resume a scheduled flow of liquidity, but in the meantime, they may need some help to bridge the income gap.
7. Members who own small businesses need help too – America runs on small business. Small businesses account for nearly 50% of the country’s economic activity. Many of these small business owners depend on credit unions for their financial services. Analytics lets you know who they are and how you can help them obtain grants or low-interest loans to carry them through challenging times.
Data analytics provides the insights you need to respond to changing member behaviors and their need for help in the era of COVID-19.
Trellance analytics solutions help credit unions of all sizes use their data to support rapid decision making in a time of crisis for their members. Download the Trellance Product Portfolio pdf to learn more.