The Importance of Making AI-Driven Decisions Accessible to CUs of All Sizes
As consumers continue their digital journey, receiving personalized attention from their CU continues to grow in importance.
In today’s environment, it is important for credit unions of all sizes to have access to practical, usable and powerful artificial intelligence-driven decisions. One area where AI can be especially impactful for credit unions is in sales and marketing. Data driven marketing technology using AI/ML (machine learning) models that tap into vast data repositories is often reserved for the largest institutions running multi-billion-dollar IT budgets. However, thousands of credit unions need this functionality but cannot make huge investments, threatening their growth and existence.
A recent article from The Financial Brand about AI maturity in banking stated that financial institutions quickly operationalizing AI capabilities is imperative. But only 1% are AI achievers. More concerning is the reality that 75% of financial institutions are still in the early experimental stage with AI.
As consumers continue their digital journey, receiving personalized attention from their credit union continues to grow in importance. Between 2015 and 2025, the amount of data captured, created and replicated globally will increase by 1,600%, according to VisualCapitalist.com. With these enormous, growing data volumes, expecting credit unions to figure out what data to use in order to drive digital marketing and sales campaigns for profitability and growth is an impossible challenge.
The use of AI will enable credit unions to leverage vast amounts of data available internally and externally. The hyper-specificity that AI can achieve allows it to access much more data at a faster rate than using simple identifiers such as geographics or demographics. The AI/ML models enable accurate predictors that can identify the financial purchasing decisions of members, which can generate higher revenue and click-through rates.
Instead of being forced to cast a wide net and hope for a big haul, credit unions can market to members they know are interested in certain products, because of AI. The advent of member personas lets marketers hone in on specific traits that define individual clientele. This means that credit unions can target the right people for their marketing campaigns. Why take a chance on members who might be on the fence to take out a loan when you can focus on those who are most likely to do it?
Beyond being interested in the “who” of their core base and the characteristics that make up their members, credit unions are also using AI to determine many aspects of information relay. This includes anything from the best times to market to members (morning, afternoon or evening) to the most efficient channels to funnel their messages (social media, television, text or email). In performing this function, AI and machine learning offer a unique sense of customization that ensures the credit union is meeting the member where and when they bank.
Maintaining relevancy in the massive sea of financial institutions is a tough task. Creating personalized member experiences is just one way that credit unions can stand out from the crowd. When it comes to the ways in which people interact with their financial institutions, the “one size fits all” policy does not apply. Everybody has different wants and needs that can’t be brushed over with the same coat of paint.
With so much information literally at our fingerprints, it can be hard to disseminate and parse information through the online jungle. For as much as it is used as a tool for convenience, artificial intelligence has the capability and the capacity to be used as a source of knowledge and education. Financial literacy should be more prevalent around the world and AI can make that happen. The arduous and daunting process of buying a car or house can be made so much easier by having the right resources any time and anywhere.
While the benefits of AI are clear, many credit unions continue to struggle with implementing such solutions due to the lack of resources to evaluate and utilize new technology. However, there is ongoing work happening in the industry to create pragmatic and accessible solutions that enable institutions of all sizes to benefit from the power of AI-driven decisions.
AI adaptation in the present day is critical as it begins enmeshing itself firmly into all facets of society. AI will become a staple of the modern day, with the irregularity being those that haven’t adopted it yet. Credit unions allocating more spending toward AI initiatives today understand the real value of AI-based decision making that will lead to better member services and reduced costs.
Preetha Pulusani is the CEO of the Huntsville, Ala.-based fintech company DeepTarget.