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Filene/Info-Pro Study: Sink-or-Swim Crossroad Ahead for CUs
Friday, May 6, 2016 6:25 AM

The majority of credit unions employ outdated data technology to power major business functions, and lag behind consumer expectations when it comes to mobile offerings, according to a recent study.

Conducted in partnership by Filene Research Institute and Info-Pro Lender Services, Inc., the study comes on the heels of similar findings by NTT Data Consulting, which surveyed more than 100 credit union and bank executives on the need to update their legacy core systems.

Info-Pro, a provider of real estate tax monitoring, escrow processing, flood determination and home insurance monitoring services, teamed up with the CU industry think tank Filene, to better assess the current challenges CUs face. The aim was to determine the role of technology in empowering credit unions to meet the challenges they face today, as well as those they anticipate in their near future.

The two parties last week released a whitepaper titled, "State of Data Technology in Credit Unions: The Sink-or-Swim Crossroad Ahead." The author of the whitepaper was Jignesh M. Patel, a professor in computer sciences at the University of Wisconsin-Madison who has worked in the area of big data for more than two decades.

Key findings of the study included:

  • When respondents were asked to rank the importance of products they offer to members, as well as their satisfaction with their credit union's current offerings, a significant gap emerged for checking/savings products and mortgage products. While respondents felt it was highly important their credit union offer these products, they were less satisfied with the actual products their institution currently offered.
  • A similar disconnect was uncovered in the area of marketing techniques. While respondents ranked new marketing techniques such as social media and pay-per-click advertising as highly important, they were dissatisfied with their credit union's current use of such strategies.
  • The research found deficiencies in credit unions' abilities to use data for important tasks such as cross-selling, maximizing revenue per member, retaining members, analyzing consumer and market trends, and more.

Source:  Credit Union Journal