BlastPoint Deep Dive Podcast

Tom: 00:00

Welcome back to the Blast Point deep dive.

Anna: 00:02

Where we, explore the incredible world of data and AI driven solutions

Tom: 00:06

with a little help from AI, of course. That's right. You've got me, Tom, and,

Anna: 00:12

And me, Anna, your AI guide.

Tom: 00:14

And guess what? This is our final episode of 2024.

Anna: 00:18

It's been an incredible year, hasn't it? Time flies when you're having fun with data.

Tom: 00:22

Absolutely. Yep. So before we dive into today's topic, if you haven't already, hit that subscribe button so you don't miss out on our deep dives next year. We've got some really fascinating stuff lined up.

Anna: 00:33

Today, we're gonna explore how AI and data are revolutionizing things for banks and credit unions.

Tom: 00:40

So sit back, relax, and get ready for some moments. Okay. So let's unpack this a bit.

Anna: 01:04

Let's do it.

Tom: 01:05

We hear the financial world all the time.

Anna: 01:07

All the time.

Tom: 01:08

But what does that even mean for, you know, everyday people like us?

Anna: 01:12

Well, think of it this way. It's all about people, their money, and how institutions manage those funds.

Tom: 01:19

Makes sense.

Anna: 01:20

And for any financial institution to work properly, they need something called liquidity.

Tom: 01:24

Liquidity.

Anna: 01:25

Yeah. Think of it like this. You need enough cash on hand to, like, cover your everyday expenses.

Tom: 01:33

Yeah. Makes sense.

Anna: 01:34

Well, for institutions, liquidity means having enough cash to meet their obligations.

Tom: 01:39

So things like loan requests.

Anna: 01:40

Exactly. Or withdrawal.

Tom: 01:41

Day to day stuff.

Anna: 01:42

All of that. And here's where things get really interesting, especially for credit unions. A 2023 report from the National Credit Union Administration or NCUA showed that deposits at federally insured credit unions only grew by 2.2%.

Tom: 01:58

Woah. That's surprisingly low.

Anna: 02:00

It really is. It really highlights the challenges credit unions face in today's economy.

Tom: 02:04

You know, you keep saying challenges.

Anna: 02:06

I do.

Tom: 02:06

And I think it's super important for our listeners to really get what those challenges are.

Anna: 02:10

Absolutely.

Tom: 02:11

So, like, what roadblocks are credit unions up against?

Anna: 02:14

Well, often, credit unions struggle with limited data on their members' deposit behavior, which makes it tougher to predict market trends and, you know, effectively meet their members' needs.

Tom: 02:24

Okay. So limited data makes it harder to serve their members.

Anna: 02:27

Exactly. On top of that, they have to compete with those big traditional banks and those flashy fintech companies.

Tom: 02:33

Yeah. It seems like those competitors have way more resources and data.

Anna: 02:36

It does seem that way.

Tom: 02:38

So can they offer things like higher interest rates? Or maybe, like, cooler, more appealing products to pull customers away?

Anna: 02:46

You hit the nail on the head.

Tom: 02:47

And speaking of appealing products Yeah. The Financial Brand, which is, like, the leading publication on financial marketing

Anna: 02:54

Oh, yeah. I love them.

Tom: 02:55

They found that a crazy 80, 90 percent of institutions are struggling to use data insights for personalized recommendations. Which is huge. Huge. Think about it. How often do you see marketing from your bank or credit union that actually feels like it's for you?

Anna: 03:11

You know, now that you mentioned it, not very often.

Tom: 03:14

Right. I feel like it's mostly just generic emails that everyone gets.

Anna: 03:17

It can feel very impersonal.

Tom: 03:19

Exactly. And that lack of personalization, I feel like, can be a huge obstacle for credit unions trying to attract and keep deposits.

Anna: 03:27

It's like trying to hit a bull's eye blindfolded.

Tom: 03:30

Oh, good analogy.

Anna: 03:32

You might get lucky a couple times, but it's not a winning strategy long term.

Tom: 03:36

So if everyone's struggling with personalized marketing

Anna: 03:38

Right.

Tom: 03:39

What can credit unions actually do to boost their deposit growth and stand out in this super competitive market?

Anna: 03:46

Oh, that is the $1,000,000 question.

Tom: 03:49

And we'll be diving into that right after a quick break.

Anna: 03:51

Alright. So we know credit unions are facing some tough challenges with deposit growth.

Tom: 03:55

Yeah. It's a real uphill battle.

Anna: 03:57

But it's not all doom and gloom. Right?

Tom: 03:59

Hopefully not.

Anna: 04:00

There have to be some strategies to turn things around.

Tom: 04:03

I would hope so.

Anna: 04:03

And I think the key is leveraging data.

Tom: 04:06

Data, data, data.

Anna: 04:08

Exactly. But in a way that creates a truly personalized experience for members. Think about it. When a company seems to actually get you

Tom: 04:16

Yeah.

Anna: 04:16

Understand your needs, your preferences Mhmm. You're way more likely to stick with them. Right?

Tom: 04:22

Yeah. It's all about that trust factor.

Anna: 04:24

Exactly. It's like when a friend remembers your birthday or your go to coffee order. It's those little things that really build strong relationships.

Tom: 04:32

Really.

Anna: 04:32

And that same idea applies to finance. When a credit union shows you, they value you as a person

Tom: 04:39

Not just a number.

Anna: 04:40

Exactly. It creates a deeper sense of loyalty.

Tom: 04:43

And hopefully, makes people wanna keep their money there.

Anna: 04:46

Exactly. But I know what you're thinking.

Tom: 04:48

What am I thinking?

Anna: 04:49

Doesn't all this personalized marketing require a ton of data and resources? Yeah.

Tom: 04:53

That's what I was thinking.

Anna: 04:54

And how can credit unions, especially smaller ones, pull that off?

Tom: 04:57

It seems like a tall order.

Anna: 04:59

It might seem that way, but it's not as overwhelming as you think. One powerful strategy is targeted product promotions.

Tom: 05:07

Targeted promotions. Uh-huh.

Anna: 05:09

Instead of sending out the same generic offers to everyone Yeah. Credit unions can use data to figure out which members would actually be interested in specific products.

Tom: 05:18

So it's like if they know someone saving for a house down payment

Anna: 05:22

Yes. They could send them info about high yield savings accounts.

Tom: 05:25

Or the certificates of deposit.

Anna: 05:27

Precisely. It's all about getting the right offer to the right person at the right time.

Tom: 05:32

I like it.

Anna: 05:33

And beyond just promotions, credit unions can use personalized marketing campaigns to really engage with members on a deeper level.

Tom: 05:40

What would that look like in practice?

Anna: 05:42

Well, it could be anything from sending tailored emails based on someone's financial goals

Tom: 05:48

Oh, interesting.

Anna: 05:49

To providing personalized financial advice.

Tom: 05:51

Through online tools?

Anna: 05:52

Yeah. Yep. Or even in person consultations.

Tom: 05:54

Wow. So it can be really hands on?

Anna: 05:56

It can be. Or even something as simple as acknowledging a member's birthday with a small gift.

Tom: 06:01

Those little touches really do go a long way.

Anna: 06:03

They really do. It shows the credit union cares.

Tom: 06:06

For sure.

Anna: 06:06

And let's not forget about education and trust building

Tom: 06:10

initiatives. Education?

Anna: 06:11

Yeah. The more a member understands about finance, the more confident they'll feel managing their money and making smart decisions. So it's about empowering members to take control of their own

Tom: 06:17

finances.

Anna: 06:22

Exactly. Which in turn strengthens their relationship with the credit union.

Tom: 06:26

Makes sense.

Anna: 06:27

When members feel confident and knowledgeable, they're more likely to trust their credit union and keep their money there.

Tom: 06:33

And that trust leads to higher deposit rates.

Anna: 06:36

And a stronger relationship overall.

Tom: 06:38

It sounds like data is the driving force behind all these strategies.

Anna: 06:41

It really is.

Tom: 06:42

But how can credit unions actually put these data driven solutions into action?

Anna: 06:46

Well, this is where PlusPoint comes in.

Tom: 06:48

Our awesome sponsor.

Anna: 06:49

Exactly. They're leading the way in this data revolution.

Tom: 06:52

I'm really curious to hear more about what they offer. What kind of AI powered solutions does Blast Point actually provide?

Anna: 06:59

Blast Point offers a whole suite of solutions designed to boost deposit growth, giving credit unions the tools and insights they need to put these data driven strategies into action.

Tom: 07:10

Okay. Break it down for me. How do these AI powered solutions actually work?

Anna: 07:14

Well, one of their key offerings is predictive analytics.

Tom: 07:18

Predictive analytics. What's that?

Anna: 07:19

It's basically using data to figure out which members are most likely to respond to certain campaigns.

Tom: 07:26

So instead of just blasting out a mass email about a new savings account.

Anna: 07:29

And hoping for the best.

Tom: 07:31

Exactly. They can actually predict who's likely to be interested.

Anna: 07:34

You got it. It's like having a crystal ball, but instead of magic.

Tom: 07:39

It's data.

Anna: 07:39

Yes. Sophisticated algorithms crunching data points like transaction history

Tom: 07:46

Spending patterns.

Anna: 07:47

Even online behavior.

Tom: 07:48

So they can really paint a picture of a member's financial life.

Anna: 07:51

Precisely.

Tom: 07:52

That's incredible. Any other tools Blast Point offers to help credit unions personalize their approach?

Anna: 07:58

They also have these amazing micro segmentation tools.

Tom: 08:01

Micro segmentation. What's that?

Anna: 08:02

It allows credit unions to divide their members into really specific groups. We're not just talking basic demographic.

Tom: 08:09

Like age and income.

Anna: 08:10

Right. We're talking financial goals

Tom: 08:12

Yeah.

Anna: 08:12

Spending habits, even lifestyle preferences.

Tom: 08:15

They're getting super granular.

Anna: 08:17

Super granular. And that means they can tailor their messages and offers much more effectively.

Tom: 08:23

And that personalized approach should lead to more engagement.

Anna: 08:26

And ultimately, more deposits.

Tom: 08:28

So it's a win win.

Anna: 08:29

Exactly. But Blast Point takes it even further with personalized engagement solutions.

Tom: 08:34

Personalized engagement solutions. What are those?

Anna: 08:37

They help credit unions create customized messages and offers that align perfectly with each member's needs and preferences.

Tom: 08:44

So it's not just about the right message, but the right message delivered in the right way.

Anna: 08:49

Exactly. It's about making members feel understood and valued.

Tom: 08:52

And that builds trust and loyalty. Absolutely. This all sounds great in theory.

Anna: 08:57

Yeah.

Tom: 08:57

But how can credit unions actually track the success of these strategies?

Anna: 09:02

That's where real time data monitoring comes in.

Tom: 09:04

Real time.

Anna: 09:05

Yep. Blast Point's platform lets credit unions track their campaigns as they happen

Tom: 09:10

Wow. That's powerful.

Anna: 09:11

And make adjustments on the fly.

Tom: 09:13

So they're not just getting the tools. They're learning how to use them effectively.

Anna: 09:17

Exactly. And

Tom: 09:17

it sounds like it's working.

Anna: 09:19

It really is. One of Last Point's success stories involves a credit union in Montana.

Tom: 09:23

Montana?

Anna: 09:24

Uh-huh. They used the platform to achieve a 90% engagement match.

Tom: 09:29

90%. That's amazing.

Anna: 09:31

I know. It means their predictive models were incredibly accurate.

Tom: 09:36

So what kind of impact did that have on their deposits?

Anna: 09:39

They saw a 17% increase in deposits Woah. Which translates to over $40,000,000 in just 60 days.

Tom: 09:48

$40,000,000 in 60 days. That's insane.

Anna: 09:52

It's incredible. It shows how powerful data can be.

Tom: 09:55

Blaz Point is really helping credit unions unlock some serious potential.

Anna: 09:59

They are. And it's not just about boosting deposits. It's about strengthening those member relationships, building trust, and helping credit unions thrive.

Tom: 10:07

It's about creating a better financial experience for everyone.

Anna: 10:10

Exactly. And speaking of insights and resources Yeah. Blast Point has a fantastic report for credit unions who want to benchmark their performance.

Tom: 10:18

Oh, tell me more.

Anna: 10:19

It's called the Credit Union Member Deposits Benchmark Report. It's packed with data and insights.

Tom: 10:25

So credit unions can see how they stack up against the competition.

Anna: 10:28

And identify areas for improvement.

Tom: 10:30

Sounds like a must read.

Anna: 10:31

It is. You can download it directly from their website.

Tom: 10:34

Well, make sure to include a link in the show notes. Perfect. Wow. So as we wrap up our final deep dive of the year

Anna: 10:40

I know it's flown by.

Tom: 10:41

It really has. We've uncovered some pretty amazing insights about the financial world.

Anna: 10:45

For sure.

Tom: 10:46

Starting with that tricky liquidity landscape credit unions are dealing with.

Anna: 10:51

Yeah. It's tough out there.

Tom: 10:52

Then we moved into those creative strategies they can use to actually grow their deposits.

Anna: 10:57

Always good to have a plan.

Tom: 10:58

Absolutely. And, of course, we couldn't forget about the superstars of the show.

Anna: 11:03

Oh, you mean

Tom: 11:03

AI and data analytics.

Anna: 11:05

Gonna forget about them.

Tom: 11:06

And how companies like Blast Point are giving credit unions the power to really connect with their members.

Anna: 11:12

In a whole new way.

Tom: 11:13

It's been a wild ride, wouldn't you say?

Anna: 11:15

It really has. And I think it proves that data isn't just about numbers.

Tom: 11:18

It's about people.

Anna: 11:19

Exactly. It's about understanding their needs and building those strong relationships.

Tom: 11:24

Couldn't have said it better myself. Yeah. Now for our listeners who wanna keep exploring this awesome world of data and AI

Anna: 11:30

It is pretty awesome.

Tom: 11:31

Make sure you're subscribed to Blast Point's deep dive.

Anna: 11:34

Yes.

Tom: 11:35

Before we officially sign off for 2024

Anna: 11:38

Time flies.

Tom: 11:39

It really does.

Anna: 11:40

Yeah.

Tom: 11:40

We wanna give a huge shout out to all of you.

Anna: 11:43

Our amazing listeners.

Tom: 11:45

You're the reason we do this show. Your curiosity, your questions, your passion for learning about data and AI.

Anna: 11:52

It's contagious.

Tom: 11:53

It really is. It makes this whole journey so rewarding for us. So from everyone here at Blast Point's deep dive

Anna: 11:59

We're sending you all the good vibes.

Tom: 12:01

We wish you a happy and prosperous New Year.

Anna: 12:03

Yes. Happy New Year everyone.

Tom: 12:05

We'll see you in 2025. Ready to uncover even more data driven discoveries together.