2021: The Path Forward with Predictive Analytics
As more consumers increase digital banking adoption and other forms of ecommerce, financial institutions need to adapt their strategic model to meet this changing demand. This will require special attention to in-house technology infrastructure design, implementing a robust digital banking support team as well as adding digital banking functionality that creates a digital experience to meet their evolving needs. The pandemic has provided valuable insight about how consumers will settle into a new pattern of spending, saving and investing online. Predictive analytics will provide your credit union with insights to monitor these changing patterns and identify/promote products and features in your digital channel to support those users’ insights.
There will always be gaps in what we know about the digital banking user especially those with more offline activity than online activity. However, the COVID-19 pandemic has changed this forcing more consumers online than ever before. Data Analytics offers trackable and more importantly, quantifiable data to help credit unions make more informed business decisions. It is important to note that predictive analytics does not predict the future, but it delivers the best possible prediction based on various sources of data, such as tracking digital banking user behavior within your digital banking experience, including path of usage, features most often used, and exit pages. This data enables your credit union to continuously refine the digital experience, which makes the app more useful to your digital banking users’ needs. This is critically important for retention of existing users, attracting new users, and improving the profitability of your digital channel. With advanced data analytics, credit unions can leverage all this data to meet and exceed evolving member expectations.
The insights from predictive analytics enable your marketing team to create one-to-one messaging, cross sell, and product strategy for those product and services your members are in the market for. Our robust database will create definitive insights to help you utilize precious marketing opportunities as effectively as possible for maximum return on investment. It will also help you to better identify members who are engaged in offline activity so you can target them with promotions for online usage. Moving a member from offline to online can often reduce your operating expenses.
With predictive analytics, credit unions have the unique opportunity to provide a more personalized experience for members, which will help earn more revenue through more effective marketing efforts and product adoption/usage. It will reduce attrition, increase adoption, and provide critical data to create a pleasant and efficient member experience when navigating the digital channel.