Financial institutions are increasing their investment in customer data and analytics to deepen customer insights, increase revenue, improve operational efficiency and manage risks.

According to CUNA Mutual Group in Madison, Wis., financial institutions spent $2.1 billion in marketing analytics in 2012. That number is expected to jump to $2.7 billion next year. Although only 8% of credit unions said they expected to expand and improve their data analytics capabilities in 2016, there is evidence that there is a growing interest in member data and analytics among credit unions.

But Steven Rick, CUNA Mutual Group's chief economist, said during the organization's 7th annual Discovery Conference Tuesday that credit unions have yet to seize the opportunity of a huge untapped potential to leverage member data and analytics that can increase penetration rates in key deposit and lending areas.