As a not-for-profit banking system, credit unions have to be careful about the way they handle their members’ money. Unlike for-profit banks who can quickly bounce back if a campaign fails, credit unions have to be careful about deciding which loan campaigns to pursue and analyze their worth to not only the credit union itself, but their members. Doing this without automation can be extremely difficult and time consuming. Using credit union business intelligence can simplify this process because of its power reporting and budgeting features.
Here are the three ways credit union business intelligence improves the function of a credit union:
Improve Decision Making
Credit union business intelligence offers reports that are easily shareable to the boards for better decision making. The board is put in place by the credit union’s members, so they expect to have the best decision making team. Using business intelligence, all the data and reports the board would need to make critical decisions in a timely manner.
Reduce Costs
As a not-for-profit banking system, credit unions are expected to have low interest rates and low fees. The only way to stay in business and continue this model that members expect is to reduce costs in the background. By using credit union business intelligence, you are spending less time manually entering information into a spreadsheet leading to possible errors. The more accurate and automated your financial system is, the more you can reduce costs.
Analyze
Consider a credit union wanting to start a new campaign for auto loans. It is a great idea in theory, but sometimes campaigns don’t always work out the way we planned. Once the campaign is over, you would want to go back and see how well you did and if you met the goal only to find it wasn’t tracked. Credit union business intelligence will track and store this information so it can be decided if this type of campaign was worth the time and money spent.
Keep It In House
Usually, credit unions will use third parties to provide reports on historic trends, loan originations, credit scores and collateral value. Unfortunately, after spending the money on these reports, they don’t always come back to you in a format that is useable and beneficial. Leveraging credit union business intelligence allows you to keep these reports in house and have all the data you need in the format that works best for you.
Credit unions have unique needs when it comes to financial reporting because the amount of transparency it needs for its board and members is critical. As a not-for-profit financial institution, members rely on the credit union to take care of their money with their needs in mind. Using a credit union business intelligence solution allows for that transparency while also helping to inform board members of the best decision making options possible.
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