If you think banks aren’t “data-driven,” then try the following: Ask for a mortgage, but refuse to provide any information that would enable the bank to figure out your credit score or credit history. Ask the bank to decide on your loan-worthiness based on their “gut” reaction. Do this especially if you belong to a group considered to be a “minority.”
Recent credit union industry data shared by Callahan and Associates suggests that small credit unions are under-performing. Callahan didn’t seem to see it that way, however.
If all these surveys about the levels of trust consumers have in banks supports your financial institution, please don’t let my comments–or common sense–get in your way of using the data to your advantage. But don’t deceive yourself into thinking that the findings from these studies have any correlation to who consumers bank with, or how they make their decisions about who to do business with.
The Merchants Payment Coalition claim that debit card reform (i.e., the Durbin Amendment) has helped consumers save almost $18 billion and supported 100,000 new jobs in three years. If you believe that, I have oceanfront property in Kansas you might be interested in buying.
Successful deployment of analytics means business process change. Some bankers–and a lot of vendors–need to stop thinking of analytics as some kind of panacea that’s going to magically improve marketing performance.
Even in FIs with a strong analytics presence, and years of experience in data-driven marketing techniques, the analytics group itself is viewed as a bunch of statistical nerds, relegated to some remote section of a floor in headquarters that none of the executive team has ever been on–or would want to be seen on.
Marquis Software’s Member Value Statements calculate dollar amounts for each members showing the relative value of their credit union’s products compared to similar products offered by nearby FIs. This is a great example of Competing On Performance.