This blog has often discussed the impact that advanced analytic technology has had on the lending space, and how it is allowing data-driven organizations to realize growth. The rising number of consumers being served online by financial institutions of all types is a major trend shaping how banks and credit unions interact with their customers, and these interactions can benefit from the use of analytics to better understand consumer needs.
Lending executives and consultants recently shared their expertise with Credit Union Times, and there was a consensus that the future of lending is likely to be both high-tech and high-touch. This means that organizations not only need the right technological solutions to support their processes, but also need to be able to gather the relevant insight from consumer data to drive decision-making. Experts argued that in coming years, it will not be enough simply to offer borrowers an intuitive and convenient online borrowing experience — the most successful lenders need to be able use the data they have available to predict their customers' borrowing needs ahead of time.
As an example, Credit Union Times explored the Florida-based credit union service organization PSCU's new data mining capabilities, which it recently added to its customer management platform. By analyzing previous transactions and trends in demand, the solution can predict customers' borrowing needs before they might even realize a need for capital.
PSCU Vice President of Enterprise Analytics Suzanne LaProva explained that the tool enables her organization to discern which members would be most likely to respond to a pre-approved credit offer, or can suggest a promotion or joint marketing effort with businesses that many of PSCU's members frequent. In essence, their analytic capabilities allow PSCU to identify and act on opportunities to grow or strengthen client relationships that might have otherwise been overlooked.
If such a solution might also benefit your organization, contact GDS Link to learn more about our custom software development capabilities and portfolio management software. GDS Link can successfully satisfy the needs of institutions of all sizes, building out an entire risk management solution or improving return on investment by integrating with existing legacy applications.