Taking Action: Mining Trade-line Details

Recently I completed an analysis for a credit union where we mined credit report trade-line details for outside loan capture opportunities.  We reviewed 90 days of full credit report pulls, analyzing the trade-line details for insights into members’ financial needs being fulfilled by other financial institutions and for opportunities to take ACTION.  The bulk of our data mining came directly out of CU*BASE tool #976 – Where you Member’s Borrow.  We did make the decision to bring in other ancillary data sources for additional insights, but the detail available directly out of the dashboard saved hours of custom query writing and data aggregation.

We segregated active trade-lines into three categories, installment loans, mortgages, and revolving lines of credit.  Then we analyzed each loan type individually.  The insights revealed were eye opening!  Sure, we found plenty of anticipated results.  Everything from large national credit card providers to small local competing shops.  But the diamond in the rough in my opinion, was an identified untapped market for this credit union, student lending.

This analysis revealed that 4 of the top 5 outside installment loan providers for this credit union were student loan providers.  Over 2,000 opportunities were identified representing tens of millions of dollars in outstanding loan balances.  Our member persona analysis revealed these were not all unemployed college students, but rather in many cases financially established adults with respectable credit profiles.

What would you do with this information?  Student lending is a niche market which may or may not be within your risk tolerance range or corporate agenda, but that is not to say there is not value in these findings!  Between partnership opportunities, referral programs, and member education there are plenty of ways to use these insights to create value for your members, strengthen relationships, or generate income to the credit union.

What angles are you considering when reviewing your analytical findings?  Do you focus on direct and tangible product and service penetration?  Or are there also opportunities to leverage your data to create indirect value to either your members, your credit union, or your partners?

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