Tech Time: How credit unions can capture revenue through predictive modeling
Leverage AI-driven tools to make the best use of the deposit influx and marketing resources.
Today, financial institutions are awash in deposits from pandemic-era stimulus programs, but they can take steps to balance this influx with lending. It’s time to embrace cross-selling predictive modeling to more accurately and proactively identify the unsatisfied needs of members and prospective borrowers.
Adopting the power of AI predictive analytics as part of an overall data strategy is an important consideration for financial institutions as banking shifts deeper into a digital-first industry. In fact, 88% of professionals using AI agree it impacts their companies’ competitive advantage. Credit unions that use traditional methods of targeting audience selection, or no targeting at all, won’t be able to keep pace with competitors that continually leverage the data at their disposal.
A Win-Win for Institutions and Members
Bank deposits have surged this year. Just in Q2 2021, they rose by $411 billion to $17.09 trillion, according to the latest available data from the Federal Reserve. To put it in perspective, this is still slower than spring 2020 when banks were inundated with deposits from early federal relief programs, but it’s nearly four times the average level of deposits over the past 20 years, according to the Fed data.
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