FREMONT, CA: Financial Institutions and Credit Unions (CU) are data-driven. In such a scenario, data analytics become an indispensable tool for this industry. Data analytics can help companies gain insights, which subsequently help them develop better products and services. Appropriate services, in turn, give better returns on investments and drive growth. According to a study, only one-third of credit unions currently opt for data analytics in spite of its utility. More institutions are expected to add data analytics capabilities in the near future, and while doing so, they should look to understand and overcome specific barriers with simple strategies mentioned below.
• The Right Application of Gained Insights
It often happens that data analytics is applied, but credit unions and banks don't act on the data. It is essential that institutions use the data and press for consistent outcomes. With the number of options and hype surrounding data analytics, companies might get confused and lose their way. This must be prevented.
Data based approach entails a system that handles the data carefully as data might be sensitive and might need protection. This means the security and privacy aspects become essential. Proper governance of data and related processes allow firms to keep an eye on these responsibilities.
• Make the Process Efficient, Build a Data Marketplace
Although organizations are going for data analytics, the efficiency isn't up to the mark. To reduce lags in the process, companies can look to build internal data markets where users can quickly find relevant data assets.
• Understand the Role Experts Play
The lack of specialized expertise often creates challenges in the way of CUs and banks as they try to make the most of data analytics. So companies must manage their human resources well and look to train all their employees and make them good at interpreting data and associated analytics.
Data analytics can determine how CUs and banks perform in all other areas. Hence, investing in data analytics is a wise option as firms look for ways to gain fast access to data which will enhance their capabilities when it comes to taking better business decisions.