Trellance Announces Search for 100 Credit Unions to Participate in the Credit Union Data Exchange (CUDX)
This initiative seeks to enable the credit union industry to harness the power of their collective data
Trellance, a leading technology partner providing innovative analytics, cloud and talent solutions to credit unions, in partnership with the Filene Research Institute, announces the creation of a Credit Union Data Exchange (CUDX). First introduced at the Trellance Annual Conference, held on May 16-19, 2023, the data exchange will allow credit unions to reap the benefits of a large, shared data pool.
“Credit unions need to join forces and share their data to compete with banks,” said Trellance CEO Tom Davis. “If we can get the 100 credit unions we need to get started, any credit union accessing the data exchange will be able to compete with even the largest of banks in terms of data resources.”
By sharing data with other credit unions, credit unions gain new benefits that can deepen member insights and further serve their membership base. These benefits include:
Better risk management: Credit unions can use data to assess the risk of lending money to a particular borrower. By sharing data with other credit unions, they can access a wider pool of data to make more informed decisions about lending.Improved efficiency: Credit unions can use data to identify patterns and trends in member behavior, which can help them improve their operations and make better decisions about product offerings. Sharing data can help credit unions to access more data and insights, making them more efficient and effective.Enhanced member experience: By sharing data, credit unions can better understand their members’ needs and preferences. This can help credit unions to personalize their services, provide tailored recommendations and improve member satisfaction.Increased fraud detection: Sharing data can help credit unions to identify potential fraud cases by detecting patterns and anomalies in member activity.Competitive advantage: Credit unions that share data can have a competitive advantage over those that don’t. By having access to more data, credit unions can make more informed decisions and improve their services, which can lead to increased member loyalty and growth.
“This is a tremendous opportunity for credit unions,” said Filene’s President & CEO Mark Meyer. “By leveraging a shared data set, credit unions can improve the accuracy and effectiveness of their data models. It also can be used to create broader insights around longitudinal topics like financial wellbeing.”
Filene’s Fellow, Dr. Cheri Speier-Pero, who has led the Data Analytics Center of Excellence for the past three years, has been an advocate and champion for a shared data exchange. “A shared data set will give CUs deeper insights to compete more effectively with the larger national banks and fintechs,” said Speier-Pero. “CUDX is a powerful way credit unions can put the research into action.”
CUDX will be developed and serviced by Trellance, with deep expertise in managing an enterprise analytics platform at this scale. Each contributing credit union will integrate with and send their data through a secure connection to a data locker that only they control. All files will be encrypted, and the encryption keys will be held by each participating credit union. This ingestion will be an automated process and what data is shared with who will be up to each individual participant.
Credit unions will own and control CUDX through a familiar cooperative model. This will ensure that the exchange is always serving credit unions’ interests in a safe, controlled manner. The cooperative will have a Board, Advisory Councils and Participating Members.
Trellance and Filene are looking for a minimum of 100 credit unions to participate in the creation of CUDX by the end of 2023. Credit unions interested in joining the exchange and can learn more and apply here.