Drive Your Credit Union's Growth with Smarter Data Insights &  Advanced Analytics

Make Informed, Strategic Decisions with Powerful Analytics

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 Advanced Data Analytics  I  Automation & AI

The integration of advanced data analytics, automation and AI has revolutionized the credit union industry. In today’s competitive financial landscape, credit unions are using data in new, innovative ways to connect with members, streamline operations, and reduce risk. With the right tools, you can enhance your services, improve efficiency, and foster growth while keeping your focus on what matters most: your members’ financial well-being.

Real Results with Arbutus Analytics

"At Virginia Credit Union, Arbutus Technology has allowed us to automate monthly data analytics surrounding certain branch and loan activity using scripts that have been written.  We also use it to perform analytics and select samples on individual audit projects.  Being able to focus on outliers and anomalies provides efficiency on audits when you have a small audit team."

-— Kenya Maddox, Virginia Credit Union

The Arbutus Technology Advantage

The focus on community has always been at the heart of these financial institutions, but as the financial landscape evolves, data has become a crucial tool for staying competitive and meeting member expectations. In the past, basic systems were used to track loans and ensure compliance. Today, advanced analytics provide deeper insights, enabling organizations to take a more proactive approach to service and risk management.

Credit Union Analytics Insights eBook

A Few Hurdles for Credit Unions

  • Disconnected Systems: Minimal Integration Between Systems. Lack of integration across platforms made it harder to derive meaningful insights.
  • Limited Data Quality: Ensuring reliable data was often a struggle.
  • Reactive rather than Proactive Approach to risk mitigation and member services. In other words, approaching risk after it occurred rather than anticipating issues.
  • Basic Tools: Without advanced analytics, credit unions couldn’t leverage data to its full potential.

 

Credit union
Risk Management and Fraud Detection

 

Advanced analytics allows credit unions to identify and manage risks—like fraud, loan defaults, and inefficiencies—by analyzing both historical and real-time data. Application of future trend analysis help spot potential issues before they arise, offering a proactive approach to managing risk.

Elevating Member Services & Experience

 

Analytics also helps credit unions tailor services to meet individual member needs, resulting in greater engagement and satisfaction. By analyzing member behavior and financial health, credit unions can offer personalized solutions that enhance both service quality and member loyalty.

Improving Operational Efficiency & Strategic Decisions

 

Using analytics, credit unions can optimize day-to-day operations, allocate resources more effectively, and make strategic decisions based on accurate data. Real-time dashboards and scenario modeling give leadership a comprehensive overview of performance, enabling smarter, data-driven choices.

Understand the 6 Key Risk Areas that Impact Long-Term Stability

Financial institutions face various strategic risks that can significantly affect their ability to remain stable and sustainable.

Senior management in critical areas such as Internal Audit, Risk & Compliance, Corporate Security, Credit, Operations, and IT must implement effective measures to manage risks in their respective domains. By doing so and regularly testing controls, credit unions can ensure long-term stability and provide reliable services to their members.

Proactive Risk Management with Analytics enables timely interventions, minimizing disruptions and ensuring that the organization remains focused on its core mission: 'Delivering exceptional service to its members'.

Business Area

Risk Areas for Credit Unions

Member Experience and Segment Risk

Poor or non-satisfactory member experience, or not tailoring products and services accordingly to help satisfy member’s financial needs and help them grow, can lead to membership losses to other institutions. As well, lack of awareness in member segmentation and demographics, and inability to retain member and attract newer members, could impact growth and stability, thus resulting is financial losses and institution’s reputation.

A positive member experience through effective and regular KYC touchpoints can lead to higher member satisfaction, loyalty, and retention, while a negative experience can result in attrition and reputational damage.

Member Services

 

 
Potential  Analytics and Testing
Trending of member segmentation and demographics, including use of AI driven functionality to examine clustering, outliers, and to perform sentiment analysis
Analyzing KYC touchpoints and data to ensure regulatory compliance
Verifying member retention policies and attraction rates
Analyzing product offerings to maximize and ensure member financial well-being
Actioning member surveys and analyzing member complaints to meet FCAC requirements

Credit, Counterparty, and Interest Rate Risk

Potential that a borrower or counterparty will fail to meet their obligations as agreed, thus resulting in financial losses to the institution. This risk can arise from various activities, including loans, investments, and other financial contracts. In addition, there is also the potential effect that fluctuations in interest rates can have on the institution’s earning and overall financial health.  As a result, effective credit risk and interest rate management is crucial for maintaining the financial health and stability of the institution.

Data Profiling and Viz
 
Potential  Analytics and Testing
Testing and monitoring for delinquencies and loan defaults
Validating effective use of and application of Interest rates
Verifying loan Applications, and testing for overrides and approvals
Verifying proper and correct charging and waiving of (penalty) fees, which otherwise could lead to revenue leakage
Identifying borrowing that granted exemptions to standard credit requirements

Regulatory & Compliance Risk

Potential for financial institutions to face consequences due to risk of failing to adhere to laws, regulations, internal policies, and industry standards. This can lead to legal penalties and damage the credit union’s reputation. Regulatory and compliance risk are critical considerations for financial institutions. Effective management of these risks involves implementing robust compliance management systems, continuous monitoring, and staying updated with regulatory changes. 

Reg. & Compliance - Automating & Scheduling
 
Potential  Analytics and Testing
Testing against wide range and suite of regulations pertaining to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), including the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
Identification, monitoring, and timely reporting of Large Cash Transactions (LCTRs) and Electronic Funds Transfers (EFTRs)
Testing of individuals and organization on regulated Sanctions List, e.g. UN List, Office of Foreign Assets Control (OFAC)
Testing and monitoring of ‘Know Your Customer’ (KYC) requirements, including identifying and fixing data quality issues
Ensuring proper Cost of Borrowing and FCAC disclosures, and appropriate application of fees and charges

Operational Risk

This refers to the potential for loss resulting from inefficiencies, inadequacies, and failures in internal processes, including system failures.

Operational risk is significant because it can lead to financial losses, regulatory penalties, reputational damage, and disruptions in service. Effective management involves identifying potential risks, implementing controls to mitigate them, and continuously monitoring and improving processes.

Potential  Analytics and Testing

  • Monitoring of and adherence to processes and procedures being followed properly during various stages of branch and account operations
  • Ensuring proper KYC requirements and standards
  • Identifying and fixing data quality issues/errors in the banking systems pertaining to member data
  • Testing for segregation of duties during various stages of transaction processing
  • Testing and monitoring of back-office processes
Operational Risk - Credit Union Data Analytics
 

Capital, Market, and Liquidity Risk

Adverse financial decisions or market conditions can lead to an institution losing its invested capital. Losses may also arise from fluctuations in market prices, such as interest rates, foreign exchange rates, and commodity prices. There is also the potential of risk that an institution will not be able to meet its short-term financial obligations due to an inability to convert assets into cash quickly or obtain funding at a reasonable cost. 

Effective capital and liquidity management policies and practices can help ensure institutions have sufficient capital to withstand financial stress and continue operating safely, and that cash needs can be met without compromising financial stability.

Potential  Analytics and Testing

  • Developing potential test procedures to simulate against different possible scenarios to evaluate impact on capital and liquidity needs 
  • Analyzing capital adequacy to ensure they meet regulatory requirements
  • Analyzing historical data and current market conditions to predict likelihood of default and determine potential losses
  • Analyzing future cash inflows and outflows to identify potential liquidity shortfalls
  • Identifying sources of data quality issues in funds transfer pricing models and other pricing models

Member Services- Rate Variances
 

Technology & Cybersecurity Risk

Rapid technological changes can introduce new vulnerabilities, thus exposing the potential for loss of disruption due to failures or inadequacies in IT systems, processes, or infrastructure. More critically, there is also the potential for loss, damage, and reputation resulting from cyber threats and attacks.

Effective management of these risks involves implementing robust security measures, continuous monitoring, employee training, and staying updated with the latest cybersecurity practices and technologies.

Potential  Analytics and Testing

  • Testing for user access, including terminations, and Active Directory management
  • Testing and management of IT Assets inventory
  • Testing of IT Change Management processes in applications
  • Ensuring appropriate access to data, networks, and applications
  • Testing of log files to identify unusual patterns and anomalies pertaining to cyber threats

IT & Network Security Risk Chart

 

 
 

Are you ready to transform your credit union's operations and member services?

Discover how Arbutus Data Analytics Software can help you harness the full potential of your data. Connect with Arbutus' solution engineering team for detailed information on how Arbutus can revolutionize your credit union's data analytics capabilities.

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