You govern your loan. Why not your data?
By Anne Legg, AdvantEdge Analytics, and David Rose, McKinsey & Company
If you saw the following stats…
- 30 to 40 percent more efficient in data requests
- 20 to 30 percent reduction of costs related to data management
- 10 to 15 percent bottom line growth related to better decision making
- 25-30 percent bottom line growth related to advanced analytics
...you would most likely say, “Yes! How do I get those results?”
Before you turn to lending, turn to your data. The “downstream” benefits above can be achieved from a robust data governance program. And they illustrate that data, like loans, can be tied directly to the bottom line.
Unfortunately, most credit unions don’t even think about their data in this way. But, once the importance of data governance is well-understood, the implications can be eye-opening. In fact, data has been identified as a strategic business asset by many organizations. So, like any strategic asset, it needs to be governed by key components that are based on best practices to fully maximize the financial and operational benefits.
Looking to get started? Click here to learn more from a recent NAFCU Services webinar that made a strong case for data governance having bottom line benefits, as well as being essential to digital transformation.
[Caption:] Six Key Elements of Data Governance; Source: McKinsey & Company
There are six key elements of data governance credit unions should focus on, which were presented in the webinar. These six elements are a good place to start and may leverage best practices that could already be in place at your credit union.
Anne Legg is Director of Client/Market Strategies at AdvantEdge Analytics and David Rose is an Analytics Expert with McKinsey & Company. To attend an upcoming session on data governance, register for CUNA Mutual Group’s online Discovery Conference 2018 at no cost.
CUNA Mutual Group is the NAFCU Services Preferred Partner for Analytics, TruStage® Auto & Home and Life Insurance Products. More information and educational materials are available at nafcu.org/CUNAMutualGroup