-By Stef Luck, Trellance
Most credit unions don’t need to be convinced about why becoming data driven should be a priority. They understand that data is key to serving today’s digital member in the ways they expect. But how to become a data-driven credit union isn’t always straightforward. Most credit unions are surprised to discover there isn’t a sequential series of steps or “right way” to move forward on the journey.
Data Maturity: A Journey with No Final Destination
Even the phrase “data maturity journey” can be a misnomer if it leads someone to believe it starts at “point A” and ends at “point B.” This makes for a nice, neat visual – but in our experience, reality is much different.
The Four Data Pillars You May Encounter on Your Journey
Though every credit union’s data journey will be unique, most will encounter four data pillars along the way. There are no hard-and-fast rules about approaching the pillars in a certain order – credit unions can even work within multiple pillars at the same time.
Following are descriptions of each pillar.
Pillar 1: Data Management
Data management is a framework of data disciplines that organize a credit union’s data to maximize value. It creates a foundation to ensure data is accurate, up-to-date, and accessible.
Pillar 2: Descriptive Analytics
Descriptive analytics makes use of large amounts of historical data, providing insights into what has happened by aggregating information and summarizing the findings.
Pillar 3: Predictive Analytics
Predictive analytics makes predictions about the future to enable proactive decisions. Algorithms are used to identify historical trends and accurately anticipate what might happen in the future.
Pillar 4: Prescriptive Analytics
Prescriptive analytics helps choose the best course of future action by advising on possible outcomes. Based on the data and scenarios analyzed, prescriptive analytics recommends specific actions and strategies by employing advanced analytical techniques.
The process of becoming data-driven is less of a straight line, and more of a “choose your own adventure.” Your credit union can chart its own path, and paint its own picture.
This article has been reduced for space. Read the full article at https://www.trellance.com/becoming-a-data-driven-credit-union-isnt-a-straight/
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