For years, Affinity Plus Federal Credit Union has maintained a large data warehouse of information to track various details of its financial services. But the statistics were only used for internal reports.
That changed late last year when the St. Paul-based credit union used information from the database to identify 1,400 members who would benefit from refinancing into short-term mortgages. To date, members who refinanced will save more than $2.6 million and the bank has written $28 million in new loans.
"I'm a big believer that data is data; it's really what you do with it that matters," said Affinity President and CEO Dave Larson in an interview. "We recognized an opportunity to look at the data in a way that we could proactively reach out to members and save them money."
Affinity's experience is part of a larger trend of financial service providers investing more in "big data" initiatives to help the banks and their customers make better-informed decisions.
Last summer, Affinity hired a data scientist who helped the company examine how to leverage its information to provide outreach to credit union members, Larson said. The company's data analysts meet with the data scientist on a regular basis.
The refinancing campaign was the first outreach initiative to come out of the change.
The response rate to the effort to reach select members to refinance has been higher than when the credit union used less targeted campaigns like mass mailings, Larson said.
He said he hopes more opportunities arise to better use data.