Lenders at financial institutions are beginning to use big data to make more strategic business decisions. By tapping the ability to harness, organize and use data quality
tools to analyze information, lenders are finally finding they're able to overcome some of the intangibles of business insight to make informed choices about which products are the best options for customers and which borrowers pose the greatest risks.
Some credit unions, such as the Southwest Airlines Federal Credit Union in Dallas, are using data analytics to advise a wide array of decisions, from ensuring their offerings are being used optimally by customers to picking the most strategic locations for new branches, according to the Credit Union Times.
"We are using a lot of data now. We are tapping into data that had been hidden to us and we are using this information to make better strategic plans and to fine-tune our product build," said Ben Cortez, executive vice president for Southwest Airlines FCU, as reported by the source.
In the future, credit unions and other financial institutions might offer options they currently have little information about, such as micro-loans, The Wall Street Journal reports. These small-scale funding opportunities are in high demand from small business owners who need a boost to get back on their feet, but find that few lenders offer them.