Who Is Coastal FCU? • Formerly IBM Raleigh Employees FCU • Chartered in 1967 • Serve 1,400 SEG’s and Associations • Including IBM, Lenovo, Red Hat, Cisco, SAS • 3-County Primary Market Focus • Regional Indirect Lender • $2.2 billion in assets • 190,000 members • 16 “Video Teller” Branches • 450 Employees • 3 CUSO’s
Who Is Chuck? • Finance and Accounting educational background • 1978-1981 – Co-owner of Furniture Manufacturer • 1981-1990 – NC Credit Union League • Incredible learning experience – foundation of my career • 1990-1992 – First Carolina Corporate Credit Union • 1992-2001 – US Central Credit Union • 2001-2013 – Coastal Federal CU • July 1, 2012 – Became CEO at Coastal • 1995-2007 - National Credit Union Foundation Board • 2013 – Joined CO-OP and CUDL Boards • Co-inventor of uGenius Video Personal Teller System • Curious, impatient, innovator, intrapraneur, problem solver, collaborator, CUDE
“It’s not about Big Data ----- it’s about Big Answers ----- which require Big Questions.”
So Many Questions to Consider • Current Members • Future Members • Channel Usage • Product Usage • Profitability • Operations/Staffing • Employees/Talent
The Big Questions at Coastal?????? • Credit Risk and Lending • Who will repay? • Who will pay late, but pay? • Who deserves a better rate? • Who deserves an approval exception? • Who should have a higher credit limit? • The answers will affect delinquency, losses, expenses, loan volume and profitability.
The Big Questions at Coastal?????? • Transaction Risk • Who should we waive check holds for? • Who should have higher transaction limits (i.e. mobile deposits)? • Who should have higher overdraft limits? Free overdrafts? • How do we make it easier to do business with us? • Who should pay fees for high risk transactions? • How do we derive a “Transaction Risk Score” for each member? • The answers will affect member loyalty, losses, expenses, fee income and profitability.
The Big Questions at Coastal?????? • Convenience • When are we open? Branches, call center, chat • How do we affordably staff each channel? • What is the right balance of investments in branches vs. digital channels? • Where should we put branches, ATM’s and mini-branches for improved service and sales? • What are the channel preferences of each member?
The Big Questions at Coastal?????? • What Motivates Each Member • To keep business with us? • To bring us more business? • To pick us over a competitor? • What timely offer will compel them to act? Through which channel? • Is it price/rate, convenience, reputation, prior experience with us, rewards programs, product uniqueness?
Member Data We Have In Our WarehouseThe Obvious……….. • Basic Demographic Data • Name, Address(s), Phone(s), Email, Age, SEG, Employer, Join date • Member Account History (Loans and Shares) • Balances, Transactions, Payments, Transaction Type • Open and Closed Dates, Channel used, Fees paid/fees waived • Card Transactions • Merchant, Time, Date, Location, Amount • Bill Pay Transactions • Merchant, Amount • Loan Applications • Credit Reports, Tradelines, Payment history, Income • Quarterly Credit Scores, Auto Data, Home Data
Data We Have, but Not In Our Warehouse • Member’s online and mobile activity • At our websites (public, online banking) • Devices used (MAC Address) • Browsing history • Call center data • Name, number, time, subject of call • Net Promoter Score and Feedback • Unstructured Data • Forms, notes, emails, letters, video
Data We Need On Members • Member/Household Income • Buying Propensities • Lifestyle Information • Social Media participation
A Few Examples of Big Data Use at Coastal • Evaluating Branch Locations • Crabtree Analysis • Member Use of Alternative Financial Service Providers
“Big Data” Technology at Coastal • Core Systems • SymitarEpisys (converted in June) • Corillian Online Banking • mFoundry Mobile Banking • CO-OP Debit/ATM Processing • FIS Credit Processing • Data/Analytic Systems • Symitar ARCU Data Warehouse • SAS Business Intelligence • SAS Enterprise Guide • Microsoft SQL • CO-OP Revelation
So how can we use big data to answer big questions that enable us to serve them better, both collectively and individually?