MADISON, Wis. (10/2/13)--A new white paper from the CUNA Technology Council describes how credit unions are using big data and predictive analytics to improve their business intelligence potential.
"The Data Craze: Perspectives on Big Data, Predictive Analytics, and Business Intelligence," covers the benefits of data-driven decisions, applying data and business intelligence strategically, the types of data at the credit union, cautions and pitfalls, the human element, whether the data craze signifies a culture shift, implementing plans, finding data management solutions, and working with vendors.
How and why credit unions use business intelligence to mine, analyze, report and apply data to make business decisions varies depending on the needs of the specific credit union at a specific point in time, according to Datawatch Corp. Among the examples of data sets used by Datawatch clients used for business intelligence:
- ATM settlements. Credit unions can mine data from optimization reports to identify transactions that appear in one report and not another, to complete daily ATM settlements much faster.
- Accrued interest reports. Credit unions can filter out specific loans--for example, those that are 60-plus days delinquent--to automatically calculate the correct accrual under generally accepted accounting principles.
- Certificate offerings. Using a share certificate trial balance report, and selecting and creating new fields or columns of data, credit unions can categorize certificates based on different ranges of interest rates. Using information optimization, the data allows "what if" analyses and "accounting intelligence" scenarios.
- Daily teller reports. Business intelligence and data analytics systems allow credit unions to take voluminous reports with thousands of transactions and summarize by branch, member, or any other type of data.
- Internal auditing. With specific business intelligence tools, credit unions can mine data from historical loan origination reports and pull it into data tables for sorting, filtering, or new calculations. Credit unions can create summaries to see subtotals and grand totals by fine detail--such as Top 10 loan products, loans and loan amounts by loan officer, loan term, risk assignment and charge-offs.