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Originally published on CUInsight.com
If there’s one thing I can say with certainty from working alongside credit unions through years of digital transformation, it’s this: technology alone isn’t the golden ticket. But it’s a common misconception. Say “digital transformation” and the first thing people picture is new software, faster automation, or slicker apps. And yes—upgrading lending systems and automating processes absolutely matters. But without a strong data strategy driving those tools, all that tech is just bells and whistles.
For years, digital transformation has dominated executive agendas. But here’s the shift we’re seeing now: improving data and analytics capabilities are taking center stage. Why? Because digital transformation without actionable data is like a car without an engine. It may look nice, but it’s not going to move your credit union forward.
Let’s start by taking a look at the lending landscape right now.
For credit unions, growing loans remains a top priority, and it’s not just about hitting balance sheet targets. Lending is one way you deliver real value to your members: helping them buy cars and homes, cover big life moments, or manage unexpected needs with confidence and care.
Auto lending has long been one of the biggest engines of that growth. For decades, it’s been a familiar, steady way to bring in new loans and deepen member relationships. But this year, the road looks a little different.
Higher interest rates are stretching monthly payments, making members think twice before buying. New tariffs could push vehicle prices even higher in the months ahead. And like many households, members are watching their budgets more closely. The result? Many credit unions are seeing auto volumes soften compared to past years, and early delinquency trends remind us that proactive risk management is more important than ever.
The good news: 90% of financial institutions plan to invest in improving their digital lending capabilities this year. A clear signal that leaders are ready to modernize how they reach, serve, and retain borrowers.
But, if you’re not using data to drive how you use those improvements, it won’t deliver the results you’re hoping for.
Getting this right is about more than just processing loans.
Organizations with mature data practices have typically proven to be three times more successful at achieving their goals. So, when you place data at the center of your lending strategy, you create a ecosystem that does more than fund loans. It strengthens relationships, protects your portfolio, and positions your credit union to thrive no matter what the market brings.
Here’s what that looks like in practice:
- Pipeline clarity and stronger pull-through
Know exactly where and why applications stall, which channels deliver the best borrowers, and where to fine-tune your process for speed and quality. That means more approvals, faster funding, and stronger yield on every loan you book.
- Offers that connect and keep members coming back
Use what you know about members’ needs, behaviors, and life stages to deliver lending offers that feel personal and relevant. You’re not just closing a loan, you’re deepening trust and building lifetime value.
- Risk insights that protect you before problems arise
Don’t wait for risk reports after the fact. A mature data strategy helps you detect early signs of stress, adjust your approach in real time, and support members when they need it most.
- Strategic use of your teams and tools
Put your staff, your technology, and your automation where they create the greatest impact—whether that’s faster processing, better service, or freeing up your people to focus on high-value interactions that technology can’t replace.
- Real results you can prove and repeat
Strong data makes it clear what’s working and where to double down. From pull-through and instant decisioning to member satisfaction and deeper cross-sell, you can measure what really drives growth and refine it quarter after quarter.
At the end of the day, this is how you turn technology from a cost center into a growth engine, and how you transform members into advocates. And it pays off: institutions with stronger member advocacy have captured greater wallet share and grown revenue 1.7 times faster than their peers.
So, in your next meeting, add these questions to the agenda:
- Do we trust our lending data enough to make confident, timely decisions?
- Do we know exactly where our greatest opportunities and obstacles are today?
- Do we have what we need to turn that data into measurable results?
If the honest answer to any of these is no or not yet, you’re not alone. Many credit unions are just scratching the surface of what their data can really do. But trusted fintech partners like MeridianLink® can help you bridge that gap with solutions built to put data to work across your entire lending process—from smarter origination to real-time portfolio insights and proactive, personalized member engagement.
Experience how MeridianLink is helping credit unions turn better data into better lending and better results.
