Mining transaction data goes beyond simply knowing what a member's favorite gas station is or if they are more likely to have a mortgage with a community credit union or a national bank. Transaction data can press play on a discovery process that will show what is important to a member in three key ways: Physically, financially and habitually.

Physically: You know where members live and you may know where they work, but knowing where they spend their money is arguably more important. Do your members prefer ATMs near their home or on their regular errand-running route? Is there a time of day or day of the week or holiday when your members may make more transactions, and can this impact staffing, network traffic or ATM cash loads? Knowing the physical patterns – where and when – of your members' demands can ensure the credit union is consistently in the right place at the right time.
Financially: Transaction data is one of if not the most telling sources of data for how a member is performing financially. It can indicate major lifestyle changes or events that may impact opportunity for a credit union to grow their relationship, or signs of deterioration or abandonment of their relationship with the institution. Transaction data, and shopping patterns in particular, are so valuable that major lending fintech disrupters are successfully basing underwriting decisions on an applicant's online purchase patterns rather than traditional debit-to-income calculations.
Habitually: People are creatures of habit and typically dislike change. This is especially true when it comes to which card they pull out of their wallet when they make a purchase. Are you top of wallet for major online retailers? How about for big box brick and mortar? Mom-and-pop shops? What about when a member is traveling or makes a first-time purchase at a new restaurant? What about when they Zelle a friend some money or use Apple Pay? Each of these habits can tell a credit union how it is perceived and where they fit into their members' financial lives.

Those who put forth the effort to extract, clean and make usable the data from card and ACH data sources will be rewarded with fresh insights into their members' needs. As credit unions look to compete in the financial services landscape, this level of insight quickly transforms from luxury to necessity. Transaction data will also serve as a valuable tool as credit unions look to support those rebounding from the COVID recession and look to rebound themselves. Transaction data can give a credit union the knowledge and opportunity to become more than a medium for moving money – it can support trust and foster a more engaged and sincere relationship that is centered on a member's and community's financial well-being.

Instant Insights /

Using Transaction Data to Clarify Your Member Perspective

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