cu analytics platform - inclusiv...cu analytics platform an opportunity for all credit unions to...

CUAnalyticsPlatformAnOpportunityforALLCreditUnionstoRe-InventThemselves

CommunityCreditUnionConferenceNovember15th,2016

TheIntercontinental,Dallas,TX

WhyBigDataIsACULeagueOpportunity…

1. Relevanceamongstallcreditunions2. Significantrealandon-goingrevenueopportunity3. Opportunitytobecome“epicenter”ofdataforindustryvs

bystander4. CollaborationiskeytosecuringthefutureCU’s– theywillnot

winthisbattleontheirown

1999 – Launcheswebsite;30employees

2000 – OfferedtoBlockbusterfor$50M

2007 – Deliversit’sbillionthDVD

2008 – LaunchesStreamingVideo

2016 –HULU/Amazon– MCap =$38B

6

#1ChallengeforCUCEOs…..

Howtostayrelevanttoyourmostvaluablemembers

In2016,thePewResearchCenterfoundthatMillennialssurpassedBabyBoomerstobecomethelargestlivinggenerationintheUnitedStates.Byanalyzing2015U.S

Censusdatatheyfoundtherewere 75.4millionMillennialscomparedto 74.9million BabyBoomers.

WhyDoesMemberEngagementMatter?

75.4Million74.9Million

https://vimeo.com/190801642

AnalyticsisNOTanITProject…..

TheAnalyticsChallenge

10

Companies like Amazon use data to make you love them

Optimization

Predictive Modeling

Forecasting

Reporting/OLAP

Data Management

Data Access95%

of credit unions

5%of credit unions

TheAnalyticsChallenge

11

Optimization

Predictive Modeling

Forecasting

Reporting/OLAP

Data Management

Data Access

Little Data

Big Data

WhatIsTheROIofAnalytics?From… To…DirectMailCampaigns 1:1OmniChannel Marketing

RespondingtoMemberRequests

Using analyticstopredictmemberneeds

MCIF – FormulaDrivenMemberProfitability

A DailyMeasureofeachMember’sActualContributiontoNI

Reliance onFICO Creation ofNewCreditScores

FollowingTheTraditionalLendingMarkets

DiscoveringNewMarketOpportunitiesviaRiskBasedPricing

FailureToRe-Invent…

Challenge#1– DisparateData

Challenge#2– OutsourcedAnalytics

MonetizingData

Challenge#3– LackofResources

Challenge#4– TimeToMarket

ACURenaissance…..timetoRe-Invent

Technology

Re-Invention=OpportunityforCULeagues

InformationSilos

22

Datastandards aretherulesbywhich data aredescribedandrecorded.Inordertoshare,exchange,andunderstand data,wemuststandardizetheformataswellasthemeaning

AccessToSkilledResources

CultureofFactBasedDecisionMaking

RevenueOpportunitiesforLeagues1. Education2. Training3. Planning&Coaching4. Seeding&GrowthofNetworks

Re-Invention….

Technology

TheAnalyticsTechnologyStack

Applications(BI)

DataIntegration(EDW)

PredictiveAnalytics

Expertise

28

The M360 Solution

Credit Union Big Data Analytics

BigDataComputingPower…theoldway…

TheNewWay…….Hadoop+Map/R+NoSQL

TheDIYOption

Budget:$2.0Million3Years

ThisisBIG“Industry”Problem..• ATMNetworks• Sharedbranching

SurvivalofTheBiggest?

33

ABILITYTOEXECUTE

COMPLETEN

ESSOFVISION

Over3B:24MMembers

(47CUs)

100M- 1B38MMembers(1,305CUs)

1B- 3B:24MMembers(193CUs)

Below100M15MMembers(4,739CUs)

6,284CreditUnions102MillionMembers

X-BoxCaseStudy– ALessonforCUs

for Big Data / Analytics

A CU Industry Solution

M360 Credit Union Instance

M360 Service Bureau

M360 Service Bureau Instance

Unstructured Data

Securing the Industry’s Data

Speed

Collaboration

Large Data Pools

Innovation

Normalized Transactional Data

RevenueOpportunitiesforLeagues1. Education2. Training3. Planning&Coaching4. Seeding&GrowthofNetworks5. Referrals6. ServiceBureau7. TechnicalServices(eg.Reportwriting)8. LeagueLevelPerformanceBenchmarking9. MerchantPrograms

InClosing…• Disruptionhasstarted– thetimetore-inventisNOW• Thisistoobigachallengeforanyonecreditunion• Collaborationistheonlywaytosolvethis• TheCUAnalyticsPlatformisthesolution• ThisisalsoanexcellentopportunityforCULeaguestore-invent