CU Rise Analytics https://cu-rise.com Mon, 17 Feb 2020 14:43:52 +0000 en-US hourly 1 https://wordpress.org/?v=5.3.2 Can Credit Unions Become Millennials Preferred Financial Institution? https://cu-rise.com/apps/blog/entries/show/can-credit-unions-become-millennials-preferred-financial-institution https://cu-rise.com/apps/blog/entries/show/can-credit-unions-become-millennials-preferred-financial-institution#comments Mon, 17 Feb 2020 13:21:55 +0000 https://cu-rise.com/?p=6623 The post Can Credit Unions Become Millennials Preferred Financial Institution? appeared first on CU Rise Analytics.

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Register for our upcoming webinar - Understanding & Engaging with Millennials

Millennials, that group of young adults between the ages of 23 and 38, are gaining recognition as a consumer demographic of growing importance. As they overtake Baby Boomers as the largest adult generation, financial institutions are looking for the most effective ways to engage them.

But earning the trust – and business – of Millennials is no simple task. As per FICO, Millennials are 2-3 times more prone to switching banks and 45% of them even cited high bank fees as a major reason to do so.

But credit unions aren’t big banks – and this presents an important window of opportunity.

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Today, half of credit union members are over the age of 53. Many of their major financial life milestones have taken place. They’ve purchased a home, saved for retirement, and built a nest egg. The opportunities to expand the customer relationship are fewer.

Millennials still have many phases of life in front of them – though they may look markedly different than the generations that came before. Their lives are powered by technology. Some have little interest in, or ability to purchase home because of the burden of student loans. Many Millennials report a lack of budgeting or a financial plan for the future, which causes some to spend more than they earn. This creates financial stress that contributes to overall levels of anxiety.

It would seem they are a perfect audience to benefit from the personalized and personable service a credit union can deliver. But right now, only 24 percent of credit union members are Millennials.

Credit unions that want to cultivate trust and lasting relationships with the Millennial audience can consider the following ideas.

Offer improved budgeting tools.

Credit unions can track members’ purchase habits and provide Millennials with personalized budgets that helps them alleviate financial stress and even begin saving.

Consider experiences before services.

A study by Deloitte showed Millennials prefer experiences over “things.” Credit unions can translate this finding through attractive and efficient mobile apps that deliver superior customer experiences to an audience that expects, and heavily utilizes, digital services.

Meet their need for education.

Millennials are a generation open to new information. Appeal to this through highly tailored programs that provide financial education across an array of relevant topics. The needs across this group of young adults vary widely.

Protect their privacy

Credit unions can do more to win Millennials’ confidence by showing the measures you take to protect their personal information and offer secure banking.

Stay community focused.

Millennials favor institutions that are socially responsible and active locally. They may find credit unions’ strong community focus more attractive and rewarding to do business with.

We’ve been studying Millennials closely to help credit unions better understand the meaningful trends and effective ways to reach them. From these high-level strategies, data analytics provide the insights needed to develop and execute the actions that get the right results. Contact us to learn more about how we can help.

Register for our upcoming webinar - Understanding & Engaging with Millennials

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Three sure-shot ways Data Analytics can Increase Interchange Income https://cu-rise.com/apps/blog/entries/show/three-sure-shot-ways-data-analytics-can-increase-interchange-income https://cu-rise.com/apps/blog/entries/show/three-sure-shot-ways-data-analytics-can-increase-interchange-income#comments Wed, 05 Feb 2020 06:21:18 +0000 https://cu-rise.com/?p=6555 The post Three sure-shot ways Data Analytics can Increase Interchange Income appeared first on CU Rise Analytics.

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Interchange income is an important component of financial institutions’ non-interest income. But in recent years, retailers’ supporting regulations and regulatory changes such as the Durbin amendment have substantially reduced what financial institutions earn on debit card transactions.  Today, the average interchange income a credit union earns from a debit card transaction range between 0.30% to 0.50%, compared to more than 1.6% on a credit card transaction.

This leaves many credit unions looking for additional ways to revive lagging interchange income. One logical and effective course of action is to increase members’ credit card usage by either issuing new cards, or encouraging current debit card users to migrate to credit.

CU Rise Analytics has helped credit unions with numerous interchange income strategies that produce consistent results. By analyzing member data, it’s possible to precisely-target the members most likely to respond with highly effective offers. Here are three examples of data analysis we use.

ACH Data

ACH data can be examined using text mining techniques that look into transaction descriptions. This enables the credit union to identify the segment of members that has credit cards elsewhere, and pay the balance through their credit union checking accounts.

For a Pennsylvania-based credit union, CU Rise’s analysis identified 7,716 members that were making credit card bill payments. As shown below, it was determined that 6,422 of these members were making credit card payments to other financial institutions, a majority at a much higher rate than what was offered by the credit union. The credit union was able to target this group with attractive introductory offers on its own credit card products for spending and balance transfers and increase its response rate greatly.

ACH data

High POS Transactions

Point-of-Sale (POS) data is rich with information about spending habits and patterns. Analyzing POS behavior reveals the most relevant avenues to incentivize desired behaviors. For example, members that frequent supermarkets will be motivated by cash-back offers on grocery spending. This feeds the natural human tendency to want to be rewarded for things you are already doing.

CU Rise helps credit unions identify member segments with significant POS spending across various shopping categories, and design relevant and appealing credit card offers.

Inactive Debit Cards

Analyzing a debit card portfolio can highlight the least-engaged members. These members may not be actively using their debit cards for a variety of reasons that vary from insufficient balances, lack of rewards, or a preference for credit. Regardless of why, identifying this segment creates the opportunity to reengage these members through a card offer with an attractive bundle of rewards and features. One key part of this analysis is to carefully separate out the members that are actively using the credit unions credit card, because the last thing one wants to do is cannibalize a higher interchange product.

How is your credit union addressing interchange income? Contact us to learn more about our data-driven strategies.

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Two more credit unions select CU Rise for data technology solutions and credit card analytics https://cu-rise.com/apps/blog/show/47592051-two-more-credit-unions-select-cu-rise-for-data-technology-solutions-and-credit-card-analytics https://cu-rise.com/apps/blog/show/47592051-two-more-credit-unions-select-cu-rise-for-data-technology-solutions-and-credit-card-analytics#respond Tue, 17 Dec 2019 09:25:59 +0000 https://cu-rise.com/?p=6095 The post Two more credit unions select CU Rise for data technology solutions and credit card analytics appeared first on CU Rise Analytics.

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Two more credit unions have chosen CU Rise Analytics LLC. as their data analytics partner. San Mateo Credit Union (SMCU), a $1 billion California credit union, engaged CU Rise after implementing a new core system. CU Rise is revamping their dashboards to accommodate the new system, optimizing and creating new dashboards to better extract key business intelligence insights, and fixing performance issues. Another $985 million California credit union, Los Angeles Police Federal Credit Union (LAPFCU) is utilizing CU Rise services to build a data to decision chain, which includes strategic planning of their data needs right from data discovery and aggregation, henceforth implementing data analytics and business intelligence solutions over it.

Know more!

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Analytics can ensure your next product launch is EPIC https://cu-rise.com/apps/blog/show/47570114-analytics-can-ensure-your-next-product-launch-is-epic https://cu-rise.com/apps/blog/show/47570114-analytics-can-ensure-your-next-product-launch-is-epic#respond Thu, 12 Dec 2019 04:40:24 +0000 https://cu-rise.com/?p=6091 The post Analytics can ensure your next product launch is EPIC appeared first on CU Rise Analytics.

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In recent years, consumer demand for loans has been high. The increased loan disbursements have raised loan-to-share ratios, increasing the risk for financial institutions, including credit unions. As a result, focus has been shifting from loans to deposits to help combat risk and maintain adequate liquidity.

Reward-based checking products are currently a hot trend designed to boost deposits. But, if not informed by analytics, a product launch carries a different risk – not producing the desired results.

CU Rise Analytics’ client CBC Federal Credit Union is a California-based CU with approximately $450 million in assets. It used data analytics to its advantage to launch a checking product that became truly epic. Here’s what they did.

First, an in-depth analysis was carried out of checking products of other banks and credit unions. A collection of successful reward-based and innovative checking products and product bundles were tested to build out cost-benefit scenarios in order to select the ideal product with maximum member appeal.

Know more

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Forward-thinking credit unions are gathering and applying data analysis insights across functional areas https://cu-rise.com/apps/blog/show/47254165-forward-thinking-credit-unions-are-gathering-and-applying-data-analysis-insights-across-functional-areas https://cu-rise.com/apps/blog/show/47254165-forward-thinking-credit-unions-are-gathering-and-applying-data-analysis-insights-across-functional-areas#respond Wed, 25 Sep 2019 02:55:18 +0000 https://cu-rise.com/?p=6087 The post Forward-thinking credit unions are gathering and applying data analysis insights across functional areas appeared first on CU Rise Analytics.

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Forward-thinking credit unions are strategically using data analytics, and achieving incredibly powerful results. This article in the latest issue of CUES magazine showcases the real results CUs are achieving, including CU Rise client CBC Federal Credit Union, which is using data science to analyze its credit card portfolio, and market its EPIC checking product, among other things.

“‘You can do a whole lot with credit card data,’ Norris notes, adding that CBC FCU learned a lot about its members just in the process of assembling and validating data in preparation to launch its analytics solution.”

Click here to read the full article.

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Loan Zone: An Analytics-Based Approach To Risk-Based Auto Lending https://cu-rise.com/apps/blog/entries/show/loan-zone-an-analytics-based-approach-to-risk-based-auto-lending-2 https://cu-rise.com/apps/blog/entries/show/loan-zone-an-analytics-based-approach-to-risk-based-auto-lending-2#respond Mon, 23 Sep 2019 09:45:54 +0000 https://cu-rise.com/?p=6079 The post Loan Zone: An Analytics-Based Approach To Risk-Based Auto Lending appeared first on CU Rise Analytics.

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Credit unions have made notable gains in the auto loan market in recent years, driven in part by the lower rates they have offered. Going forward, a new approach to setting rates—an analytics-based approach—should give credit unions new power to stay competitive when adjusting in response to changes in federal rates.

Click here to read the full article.

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Three more credit unions pick CU Rise for their analytic needs https://cu-rise.com/apps/blog/show/47221350-three-more-credit-unions-pick-cu-rise-for-their-analytic-needs https://cu-rise.com/apps/blog/show/47221350-three-more-credit-unions-pick-cu-rise-for-their-analytic-needs#respond Thu, 19 Sep 2019 05:25:20 +0000 https://cu-rise.com/?p=2079 The post Three more credit unions pick CU Rise for their analytic needs appeared first on CU Rise Analytics.

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CU Rise Analytics has launched new data analytics projects with CBC Federal Credit Union, Chaffey Federal Credit Union, and Patriot Federal Credit Union. They are among are the latest credit unions to adopt CU Rise’s data science products and services to deliver superior member service and develop more advanced competitive strategies.</p> <p>“More credit unions are starting to understand that deep analysis of their data is the key to highly targeted and effective member service and product growth strategies,” said Karan Bhalla, CEO of CU Rise Analytics. “It’s exciting when credit unions see the value in data analytics. Our team is highly motivated to create impactful results.”

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You can’t afford not to use data-driven on-boarding https://cu-rise.com/apps/blog/show/47199561-you-can-t-afford-not-to-use-data-driven-onboarding https://cu-rise.com/apps/blog/show/47199561-you-can-t-afford-not-to-use-data-driven-onboarding#respond Fri, 13 Sep 2019 05:20:20 +0000 https://cu-rise.com/?p=2085 The post You can’t afford not to use data-driven on-boarding appeared first on CU Rise Analytics.

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By - Karan Bhalla (CEO, CU Rise Analytics LLC)

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Financial consumers today have choices – at least 10,000 when it comes to financial institutions, to be more exact.

That’s why, when you secure a new member, retaining them is so important. Between 25-40% of new members leave a credit union in the first year. Consider this:

  • It costs far more to acquire than retain a member.
  • You are much more likely to be successful selling to an existing member than a new one.
  • Loyal members are more likely to adopt new products.
  • Customer satisfaction increases significantly with regular follow-up after account opening.

So, what can credit unions do to preserve those ever-important member relationships?

 

Study after study shows effective onboarding is key – with emphasis on “effective.”

Effective onboarding:

  • Increases revenue and decreases costs.
  • Increases member engagement.
  • Increases wallet share.
  • Increases member loyalty.

What makes an onboarding program more effective? The most powerful weapon is the one you already have: your data.

Data-driven strategies are the secret weapon for onboarding programs that are relevant, targeted, and highly successful. Without tapping into your data resources, you risk losing time and resources on efforts that don’t produce the right results.

The first 90 days of the new member relationship are critical. This is the window of time to reinforce the member’s decision and cement a long-lasting bond.

And remember, the days of seeing your members in the branch are dwindling. In 2016, approximately 40% of Americans said they hadn’t visited their bank or credit unions in past six months – and the trend has continued to accelerate. Your onboarding program should be largely digital, and engage members that may never walk through the door.

Here’s an overview of what the first 90 days of a data-driven onboarding plan built by CU Rise might look like.

  1. Welcome. Make the member feel valued and let them know what to expect. Sending thank you cards are one way to welcome the new members.
  2. Provide a guide. Give members the information and steps needed to get going with their products and remind them of the benefits. Offer a tour of your site and its features. This can happen automatically with a triggered email that also prompts members to go digital.
  3. Increase engagement. Ensure the members are using their product and deliver a seamless onboarding program personalized for each member using data segmentation.
  4. Cross-sell using data. Identify unfulfilled needs and offer only relevant solutions. An auto loan, real estate loan, credit card, insurance or investment offer might be made after analyzing the members’ transactions, demographics and relationship history.

Effective onboarding is about more than just cross-selling. When done right, it fosters a deep and lasting relationship and builds greater satisfaction overall, including with the products members already use.

We can help you create a highly personalized and much more effective onboarding plan – but one that feels almost effortless because it uses the right tools and technology.

Request a free consulting session here!

This article was originally published on CUInsight.

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CUs and digital readiness: Offering online banking services is no longer enough https://cu-rise.com/apps/blog/show/47199556-cus-and-digital-readiness-offering-online-banking-services-is-no-longer-enough https://cu-rise.com/apps/blog/show/47199556-cus-and-digital-readiness-offering-online-banking-services-is-no-longer-enough#respond Fri, 13 Sep 2019 05:15:07 +0000 https://cu-rise.com/?p=2082 The post CUs and digital readiness: Offering online banking services is no longer enough appeared first on CU Rise Analytics.

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Faced with the reality that 40% of Americans aren’t visiting bank and credit union branches in favor of online and mobile banking, financial institutions today understand that they must be “digitally ready,” with an online presence that meets the expectations of today’s consumers.

Like other FIs, credit unions are expanding their digital presence by moving traditional banking services online. But, the competitive landscape is also changing. Technology companies are making their way into financial services, and it’s predicted that in 10 years, a technology firm could be world’s largest bank. In a survey by Bain & Company, 73% of millennials said they would consider banking with a tech firm.

Click here to see full article.

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Topline FCU Shares How They Are Successfully Using Predictive Analytics https://cu-rise.com/apps/blog/show/47115114-topline-fcu-shares-how-they-are-successfully-using-predictive-analytics https://cu-rise.com/apps/blog/show/47115114-topline-fcu-shares-how-they-are-successfully-using-predictive-analytics#respond Mon, 26 Aug 2019 10:35:28 +0000 https://cu-rise.com/?p=6056 The post Topline FCU Shares How They Are Successfully Using Predictive Analytics appeared first on CU Rise Analytics.

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Source – CU Broadcast

Jeff Valley, Manager of Data and Analytics at Topline Federal Credit Union, and Karan Bhalla, CEO of CU Rise, joined us on the program to show how credit unions are using predictive analytics today — Topline, in particular. Here what we asked them:

  • Why is predictive analytics exciting for Topline?
  • What are the possibilities here?What challenges were Topline trying to solve when they made the decision to invest in data analytics for their credit union?
  • What are the examples of specific ways Topline is using data to be more strategic?
  • How has the use of analytics changed some of their approaches to serving Topline members?

 

Many takeaways in this discussion with Jeff and Karan. So check it out and let us know your thoughts.

Click here to see the full interview.

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