Data Analytics at Delta Community Credit Union

Agenda

2

• About Delta Community Credit Union (DCCU)

• Our Data Analytics Journey

• Data Analytics Philosophy & Strategy

• About Lending Performance & Analytics

• Lending Performance Management

– Executive Dashboards

– BoD Package Automation

– Loan Charge-off Automation

• DCCU Data Analytics Roadmap

• Questions

About DCCU

PAST

• 1940 - Began Operations with Capital of $45

• 1983 - Assets Exceeded $200M

• 2005 – Became Delta Community Credit Union

PRESENT

• The Largest Credit Union in Georgia

• Assets ~ $5.8 Billion

• Members ~ 390,000

• Employees ~ 1065

Our Data Analytics Journey

Pre-Data Warehouse Data Warehouse Strategic BI Program

› Reporting is labor intensive › Complex and detailed

spreadsheets› Disparate data sources› Multiple versions of the

truth› Huge report backlog› Decision-making is

frequently based on “gut”› Performance data is

inadequate› Reliance on partners to

cobble together performance metrics

“2006 and prior”› Identify enterprise solution› Investment in tools /

technologies› IT driven implementation› Limited consulting› Long time to market› Limited input from business› Build and they will come

approach

“2007-2011”› Reset with new BI program› New BI Director role› Joint accountability to CIO

& Business leader› Needs assessment› Business driven› BI Roadmap › Governance for

prioritization› Agile delivery › Quick time to market

“2012 and beyond”

Data-Driven

IM&A Vision and Mission

VisionProvide World-Class, Efficient Enterprise Data Management, BI & Advanced

Analytics to Drive Innovation Within the CU

Mission

STRATEGIC & ENABLING PILLARS

Customer Engagement

No-TouchAutomation

Leverage Cloud &Big Data

Highly Skilled

Workforce

Responsive IT

Operational Excellence

Enterprise Data

Management

Advanced Analytics

Performance Management

BI TechnologySupport & Training

Data Governance

Data Analytics Philosophy

Technology› Re-use Technology› Augment as Necessary› Invest in Automation › Agile-ready Technology

Process› Speed to Market› Business-driven› Robust Product

Roadmap› EDW/BI Governance

› NPS for Process Improvements

People

› Tighten Business Partnership

› Executive Support› Customer Collaboration› Training & Continuous

Learning

DCCU

Data AnalyticsPhilosophy

Data Analytics Strategy

People

De-centralized Business Analytics

IM&A Team

•2 Managers•3 Data Engineers•2 Business/QA Analysts•2 Architects•1 Data Scientist

Centralized Data (15 TB)• Currency• Quality• Consistency • Data Protection27 + Sources • Core Banking• Loan Origination• Loan Servicing• Channel• Misc.

•Top-down C-Level Governance

•Agile Development

•BA CoE

•NPS-Driven

•Dashboards / Scorecards

•Production Reports

•Predictive Analytics

•Forecasting / Scoring

•Process Automation

Data Processes Analytics

Overview of Loan Performance & Analytics

People Objectives Scope Responsibilities

Manager

•4 Business Analysts

•3 Quality Control Specialists

2 System Administrators

•AnalyticalSupport

•Monitor Performance

•Monitor Credit Quality

•Consumer

•Real Estate

•Commercial

•Purchased / Participated

•Pricing Analysis

•Benchmarking

•Industry Research

•Forecasting / Predictive Analytics

•Operational Reporting

•Executive Reporting

•Regulatory Reporting

Executive Reporting | Loan Growth Tracking

- Daily Automated Email Updates to Executives

Executive Report | Loan Application Volumes

- Daily Automated Email Updates to Executives

Executive Reporting | Loan Concentration Risk

- Daily Automated Email Updates to Executives

Executive Reporting | Roll Rate Predictive Model

- Monthly On Demand Report Used to Predict Future Losses

Executive Reporting | Vintage Analysis

• Monthly Reports• Monitor Credit

Underwriting Policy

• Loan Loss Curves• Charge Offs by

Credit Bands

Executive Reporting | Credit Score Migration

- Monthly On Demand Report Used to Monitor Credit Health of Loan Portfolio

Credit Committee | Board of Director Reporting

ParticipatedCommercialResidentialConsumerTotal

Credit Committee Legacy Process | Excel (Manual)

Servicing Platform

Residential Mortgage

Origination Platform

Residential Mortgages

Servicing Platform

ConsumerLending

OriginationPlatform

Consumer Lending

Servicing Platform

Purchased & Participated

ServicingPlatform

Commercial Lending

Credit Committee Current Process | Automated

Servicing Platform

Residential Mortgage

Origination Platform

Residential Mortgages

Servicing Platform

ConsumerLending

OriginationPlatform

Consumer Lending

Servicing Platform

Purchased & Participated

ServicingPlatform

Commercial Lending

Loan Charge Off Legacy Process | Inefficient (Manual)

1st of the MonthLast day of the Month

Excel File Generated from

the Loan Servicing (Core) System

List Emailed to 6 Departments

for Review

Payments Tracked Manually

Through-out Month

Email Communication to

Remove Loans from C/O List

Final List Created in Excel

and Uploaded into Core System

Exceptions Were Cleared Manually

Before C/O Process

Completed

1 2 6543

Loan Charge Off Current Process | Efficient

Consumer Lending Loss

Mitigation

Residential Lending Loss

Mitigation

Commercial Lending Loss

Mitigation

Repossession Team

Deceased Member Accounts

Team

Bankruptcy Team

Microstrategy:

• Eliminates need for manual tracking

• Automatically maintains up to date listing

• Empowers each business unit to manage their segment effectively

Benefit:

• More efficient and accurate

• Reduction in man hours: 80 hrs. per month

• Increased buy-in of Microstrategy

DCCU Data Analytics Roadmap

2019

• Real-time Data Warehouse

• Machine LearningOperationalization• Operationalize Data Lake

• QC Automation• Operationalize

Cross-Sell Tool• Custom Credit

Scores

• Democratization of Predictive Analytics

IM&A LPA2019

20202020

2021

2021

• Data Lake Sandbox

• Cross-sell Tool• API Integration

• Cross-sell Tool• Operationalize

Predictor Score

• Predictive & Prescriptive Analytics

Questions

Any Questions