Amid the era of digital transformation, credit unions and financial institutions are finding profit-driving applications for the treasure troves of data that have been at their disposal for several decades. This data is providing a new perspective in consumer behavior, preventing disasters and thefts, and unlocking the secrets of money movement. And now, big data is poised to make big changes to consumer lending. Let's take a closer look at three ways it's already happening.

Recent research has revealed that credit unions' tightened lending approach is backfiring, becoming detrimental to both borrowers and lenders. In their attempt to maintain high credit quality, many credit unions (CUs) have missed valuable lending opportunities and lost some of their reputations as lenders focused on serving average, working-class people. Many CUs have reported extremely low delinquencies and charge-off rates, which has sparked concern among lending officers who think they're missing opportunities to fulfill member needs. Thankfully, there are ways to make up for all those lost loans.

Our country continues to face a difficult economic situation. The cost of living is up, supply chain delays persist, and wages are low. For credit unions, it just makes it that much more important to innovate their digital strategy to better serve their members. Below, we've outlined four key credit services that your credit union should be offering.

The Great Recession negatively impacted countless consumer credit scores, leaving many in a financial bind. Thankfully, credit unions (CUs) are stepping up to help people get back on their feet, offering their members a variety of credit-building services and tools--from low-priced secure loans and complimentary credit consultation to virtual debt management courses. Instead of charging high service fees, many CUs have resorted to more consultative methods.  Increasing credit can be a time-consuming process requiring patience and self-control. Below, we outline four key ways your CU can begin to either initiate credit or rebuild your members' credit scores.

If you have used a travel website lately to book a flight, you may have noticed a reliability score or rating for flights. This is expressed as a percentage of the time that the flight will actually arrive on schedule to its destination. Advanced sites will use a sophisticated algorithm that will factor in weather and airport delays, the length of delays, cancellations of flights altogether, and much more. Basically telling you that while the flights you book will get you from Point A to Point B, some airlines will be more reliable to get you there on time. The difference between a standard credit score versus a FICO^® Score can be viewed in much the same manner. While they both will help determine the credit worthiness of an individual, a FICO^® Score will provide a much more reliable view of your member's credit risk. 

It’s easy to forget about your credit score until you need it. When it comes time for a loan or credit card application, you don’t want to be surprised with a rejection because you didn’t know that your credit score has gone down since the last time you checked. Most people do not check their credit scores regularly, if at all. Some are deterred by the misconception that checking will ding them some points. There are several reasons why everyone can benefit from checking their credit score. Here’s why your credit union should encourage members to check theirs.