Predictive analytics uses the tools of science and technology to help CUs accurately and confidently assess what the future may hold.
In a year hallmarked by uncertainty, accurately predicting what may lie ahead isn’t just wishful thinking – it’s an important business strategy. This type of intelligence can separate the best-performing credit unions from the pack in the low-rate environment where greater threats of credit losses loom.
Understanding where the trends are pointing doesn’t come from lucky guesses, gut instinct or feelings based on past experience. The most powerful insights and forecasts are derived from dimensional, data-driven analysis. The power of predictive analytics is in advanced statistical models and machine learning algorithms that deeply analyze member data and see what the human mind can’t. Especially in today’s climate, credit unions’ interest in predictive analytics is growing, particularly in three key areas:
- Pinpointing risk,
- Understanding changes in behavior patterns and
- Finding the right places to increase income.
To read further how predictive analytics can help in each of the above areas click here.