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