What is Your Credit Union s Data Strategy Missing?

Transcription

1 What is Your Credit Union s Data Strategy Missing?

2 Presenters Dylan Tancill Baba Majekodunmi Tracy Williams LeeAnn Gill Tom Kuang Head of Credit Union Team Business Analyst in Payment Products & Services Product Specialist Retail Sales Operations Manager Senior Vice President Information Services/CIO

3 About Datawatch PUBLICLY TRADED INNOVATION NASDAQ DWCH Pioneer in self-service data extraction & blending and real-time visual data discovery FOUNDED 1985 ACQUISITIONS HEADQUARTERS EMPLOYEES Panopticon Worldwide Angoss 2018 REGIONAL OFFICES BRANDS FOUNDED New York Monarch London Swarm Stockholm Panopticon Toronto Angoss Over 14,000 global customers of every size, including 431 of The Fortune 500 Bedford, Massachusetts US Manila Singapore Datawatch is the data intelligence solutions partner that fuels your business. MORE MORE MORE DATA TRUST MINDS

4 Leader in Data Strategy Solutions for Credit Unions

5 Current Data & Analytics Challenges Gartner s Big Data & Analytics Summit Keynote Establish TRUST in the data Manage DIVERSITY of data, users & outputs Build the data LITERACY of your workforce Master the COMPLEXITY of data We believe TRUST is the by-product BY 2022, WE of a WILL Data CONSUME Marketplace MORE whose FALSE INFORMATION foundation is built THAN on Social TRUE Collaboration, INFORMATION thru Governance, Gamification and Machine Learning Datawatch is agnostic to: 70% 1. Data OF ORGANIZATIONS (100s of connectors) 2. NEED Sources, TO INTEGRATE and MORE 3. Downstream THAN 6 DISPARATE tech, DATA SOURCES. (BI, Advance Analytics, data science tech, etc.) Datawatch captures and shares the knowledge & best practices BY 2020, of 80% the Rockstar OF analyst. ONLY 28% The Marketplace OF ANALYSTS ORGANIZATIONS allows users to search WILL & consume CAN ACCESS curated datasets & ANALYZE or INVEST assists IN the DEVELOPMENT user with recommendations. NEW DATA With WITHOUT the friendly naming OF DATA alias, LITERACY users are isolated from CLOSE the IT schema SUPPORT. naming conventions.

6 Shift to a Data-Driven Culture Legacy IT and BI/BA Data Analytics Structured, Repeatable by Process, Controlled Access Iterative, Exploratory, End-User Driven Business users define the question to ask? NETWORK LOCATION SOCIAL MEDIA IT delivers a platform to create discovery IT structures the data sources to answer the pre-defined question Monthly Sales Reports, Profit Analysis, Surveys, Inventory WEB PROVISIONING EDW $ BILLING??? Line of Business Owners explore what questions could be asked Fraud Detection, Product Strategy, Services Development, Churn avoidance, Faster Loan Applications

7 What is a Data Strategy? A framework for governing the collection, organization, management, access and sharing of information assets across the organization.

8 The Datawatch Approach to Data Strategy DATA OFFENSE Focuses on growth objectives such as increasing revenue and/or market share and enhancing customer satisfaction. DATA DEFENSE Focuses on minimizing risk by ensuring regulatory compliance, detecting and preventing fraud/theft, and ensuring data integrity. 29 August, 2018

9 The Datawatch Approach to Data Strategy OPERATIONAL EFFICIENCY Day-to-day operations and must-dos that enable credit unions to understand basic performance. ANALYTIC INSIGHT Initiatives that leverage data to gain understanding, identify opportunities & threats, create predictive models & forecast. 29 August, 2018

10 DEFENSE OFFENSE Data Strategy: From ME to WE C-LEVEL FINANCE BI SALES OPERATIONS HR MARKETING OPERATIONAL EFFICIENCY ANALYTIC INSIGHT *Concept derived from Harvard Business Review article What s your Data Strategy?

11 DEFENSE OFFENSE Credit Union Data Strategy Examples & Use Cases Automating data access & preparation Mergers & Acquisitions System Migration Mortgage Servicing Solution (MDS) Member Spending Analytics (opportunities) Marketing decision-making dashboards Credit Risk Scoring for Originations Branch Incentive Programs Call Center Optimization Reconciliation & Exception Reporting Compliance/Regulatory Reporting (i.e. CFPB, NCUA) Internal Audit Ad hoc interrogation of data Member Spending Analytics (threats) System Analysis for IT & Procurement Fraud & Anomaly detection Collections & Recovery OPERATIONAL EFFICIENCY ANALYTIC INSIGHT

12 AUTOMATE Data Preparation: The Lynchpin of Data Strategy Parsing PDF, Text to Data Sort, Filter, Calculations Transform Data - Pivot, Unpivot, Aggregate ACCESS MANIPULATE ENRICH COMBINE LOAD Cleanse Individual Fields Merge with External Data Repeatable Process

13 What do Credit Unions Want to do with Data? Increase Efficiency & Accuracy More Comprehensive Reporting Better Decision Making Advanced Analytics Automate repetitive data prep processes Accurate reports 360 view of membership Valid, data-driven Competitive edge Improve member experience Visualizations Predictive analytics Tableau Qlik Panopticon Machine-Learning RPA

14 Data Preparation Challenges & Impacts for Credit Unions Manual Data Access & Data Prep Error-Prone Reporting and Analytics Decision-Making Without Data Not repeatable Burdensome on IT Time-consuming Examples GL Reconciliation ATM, Teller & Card Services Internal Audit Overworked employees Multiple Versions of the Truth Untrusted analytics Poor strategic decisions Dissatisfied members Lost revenue

15 PenFed Credit Union We actually drive business value by using all our data Saved $13M in Contract Negotiation Added $7M in Revenue with Charged Off Loan Sales Program RPA Initiative to Manage Closure of Overdrawn Accounts Alleged Software Non- Compliance by $14M Needed proof of contract compliance Extracted log files to review Usage, adherence to compliance Identified discrepancy in charges Settled for $1M, saving $13M Many moving parts Legal, Compliance, IT, Data Automatically prepare list of loans to be sold SQL database, system of record reports, statements, member information, employer information of loan owner Total of $7M added revenue since June 2018 Expect $500,000 additional revenue per month Automated process being instated Core banking system generates Overdrawn Account report daily Monarch automatically cleans report and pushes to RPA RPA closes overdrawn accounts Eliminates manual processes Prevents lost revenue

16 Data Strategy at PenFed Credit Union Everything is Transforming Technology Data Management & Processes People Adapting is essential Solutions disrupt legacy tools Bridge gap between business objectives and delivery Revolutionize processes Siloed Data Data Marketplace Self-Service Team Driven Control Governed Agility New Roles & Skills Data Leaders & Program Managers Power Data Users Administrators Teach, Govern, Grow

17 TwinStar Credit Union Monarch is a verb at TwinStar Make IT s Lives Easier Increase Sales with Data-Driven Marketing Quickly Identify & Resolve System Errors Improve Performance with Branch Incentive Program Resource for IT to Extract reports Manipulate data Reconcile quickly Simplify Excel Extract spending data ACH & Debit Reports ID member spending Loan payments Home improvement 3 rd party payment apps Create call lists & unique offers Increase sales performance Identify system error Reconcile system data to find anomaly Core system Posting Journal Online Portal Resolve issues before members are aware Improve member satisfaction & relationship Access, normalize & reconcile disparate reports CRM, Loan Production, Sales Performance Management Update incentive platform in near real-time Rep quota, team quota, commission reports Promote teamwork & competition Inform board planning & forecasting

18 Schools Financial Credit Union If you can t tap into your data, it doesn t matter what you analyze or visualize Finalizing Loan Servicing Quickly Identify Skimming Devices on ATMs Ensure E-Statement Validation Vision as a CIO Extract Data from Lending Report ID incomplete loan processing Re-engage members Increase revenue Track complaints of fraud Reconcile Account Info with ATM withdrawals Quickly ID impacted ATM(s) Manually checking e- Statements 100 out of 180,000 Now compare vendor report with internal systems 100% validation Data prep foundation Training business analysts Migrating to Data Marketplace Minimize impact on members Efficiency gain Mail accurate statements

19 ROI for Schools Financial $ GAP Automated Paper BillPay Check to ACH Conversion Automated Daily Mobile Wallet Notification Automated ATM Balance Reporting Create IS GL Expense Summary Report in 4 seconds Monthly GAP Report Incentive Tracking Savings: Savings: Savings: Savings: Savings: 25 Hours Per month 32 Hours Per Month 32 Hours Per Month 2 Hours Per Month 1 Hours Per Month Reduced Lockbox Volume by 70% Total: 92 Hours Per Month

20 OFFENSE DEFENSE Credit Union Data Strategy Based on Today s Discussion E-Statement Validation Member Spending Analytics (opportunities) Charged Off Loan Sales Finalizing Loan Serving Branch Incentive Programs Remote Deposit Program Contract Negotiation & Compliance Savings Quickly Identify & Rectify Account/System Errors RPA-driven Overdraft Account Management Member Spending Analytics (threats) System Analysis for IT & Procurement Fraud & Anomaly detection ATM Analysis & Skimmer Detection OPERATIONAL EFFICIENCY ANALYTIC INSIGHT

21 Learn More WWW WEBPAGE Credit Union Page: TRIAL Download a Trial DEMO Request a Demo READ Read CDO s Guide to Practical Data Intelligence DOWNLOAD Download the What s Your Data Strategy worksheet

22 Questions?