Economically, let's just call 2020 a burnt, pineapple upside-down, inside-out cake. It had such a great intention when the year started, but after the battering it has taken, it looks, well unappetizing at best. Now, it is mid-way through August and its time to think about what 2021 holds.
According to the three scenarios offered up by The Conference Board, the 2021 US economy has nowhere to go but up. But when you are struggling to recover from the single most significant quarterly economic contraction in 75 years, up is ideally the most desirable movement.
From the consumer/member perspective, high levels of unemployment will tamper their badly-needed spending. So what should a credit union be focusing on in 2021?
The member & their wallet
In January of 2021, expect members to look and act differently than they did the year before. Their spending has increased online and, most likely, with different retailers. Additionally, online capabilities and expectations of this channel have dramatically changed as well. If members have school-aged children, they have been attempting to work and provide educational instruction for nearly a year. With the burden of that effort falling on the shoulders of mothers. With one and five working adults unemployed, the financial condition may have dramatically changed as well.
One of the tiny advantages of 2020 has been the increased data available due to online purchase behavior. Mining member transaction data holds a real gold mine of member spend behavior and cash flow insights, just to name a few. Understanding member spending behavior provides insight to credit card engagement, loan opportunities, and a bevy of other relationship-engagement opportunities. Understanding deposit and cash flow trends are pretty much like having a digital coffee with the member. The member is looking to its credit union to help them navigate through the residue of the burnt pineapple, upside-down, inside-out cake, and best place to start is in the data.
Make 2021 the year of the member and their data, and it will be a rewarding investment.
Wish you could see your member spend, cash flow plus actual competitors, and disruptors?
In 90 days or less, THRIVE can harness your member data and fill in these knowledge gaps in less time and money than you can think!
Click here to learn more.
Is there a book out there that can help me leverage my credit union's data?
Written for credit unions by a credit union expert, Big Data/Big Climb: A credit Union playbook for leveraging data and talent to achieve revolutionary member relationship has been hailed as a "must-have". The book cuts through techno-jargon and translates data transformation concepts into a playbook filled with real-world examples, assessment guides, and other tools needed to reduce member friction, analyze actual competition, and identify disruption to improve the lives of its members and gain competitive advantage.
What if I want something more interactive than the book?
For the same time it takes to enjoy your lunch, you could be learning about the competition, disruption, and member spend trends, so why not do both! Click here to learn how to access the recorded session on this topic.