CASE STUDY — 6 May, 2022
Deep Market Intelligence Helps a Credit Union Craft a Successful Expansion Plan
Data released in December of 2021 by the National Credit Union Administration (NCUA) showed that federally insured credit unions saw shares and deposits increase by 14.4 percent to $1.75 trillion as of the end of the third quarter of the year. Earlier in 2021, the credit union industry signaled intentions to open or expand hundreds of branches and facilities.1 A credit union’s field-of-membership is the legal definition of who is eligible to join, and federally chartered credit unions must receive approval from the NCUA prior to serving new groups or geographic areas.
This large credit union had recently received approval by regulators for field-of-membership expansion. The organization was heavily focused on commercial real estate (CRE) lending and wanted to diversify the business by developing more pure banking-type relationships across different industries and regions. The head of market research thought this type of expansion strategy required a deep knowledge of industry issues to position the credit union in more of an advisory role versus simply handling transactions.
Pain Points
The head of market research was charged with assisting the executive team with the expansion strategy. This would require having information on a range of factors to determine the best locations to consider, plus prospecting tools to determine how to tactically develop new business opportunities once a site was established. The head of market research wanted to identify a solution that could provide:
- Information on businesses in different regions, including their size and revenue potential.
- Insights on which of these businesses had refinancing needs and relationships with competitors.
- Tools to help the member business lending identify leads and increase their knowledge of local industries.
- Visualization tools to support impactful presentations to the company’s leadership.
The head of market research was familiar with S&P Global Market Intelligence (“Market Intelligence”) because the firm was using RateWatch®, one of Market Intelligence’s products for competitive rate analysis. He reached out to learn more about the broader capabilities that were available, describing the expansion strategy and saying he wanted to know “where and how” to win new business.
The Solution
Market Intelligence began by describing the S&P Capital IQ Pro platform that provides access to extensive datasets and workflow tools. This includes a robust set of information on community banks and credit unions to support peer group analysis, plus a range of mapping and visualization tools for impactful presentations. They then turned to the Commercial Prospecting offering that provides information on businesses across the country, plus Vertical IQ2 that helps bankers get prepared for sales calls. Together, this solution set would help the credit union:
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Streamline workflows with powerful analytical tools |
S&P Capital IQ Pro is a one-stop desktop solution that provides unrivaled data, tech-forward productivity tools, news and research. Users can instantly find information across companies and multiple documents, utilize a flexible charting tool for customizable analysis of company and market performance and much more. |
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Do peer group analysis |
The Financial Institutions dataset includes detailed profiles on more than 14,000 active and 45,0003 historical U.S. financial institutions: banks, thrifts and credit unions. Coverage of key metrics makes it easy to benchmark performance against other types of institutions. |
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Uncover prospects |
The Business Listings dataset provides relevant details for 40+ million businesses across the U.S. Advanced search capabilities enable users to target prospects by area (e.g., city, county or zip code), industry type, estimated revenues, employees and more. |
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Picture the sales territory |
A mapping tool lets users visualize their footprint and see where businesses are located relative to current or potential new branch locations and competitive activity. |
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Quickly make contact |
A prospect matching tool provides relevant contact details for the 40+ million business listings. |
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Access detailed CRE information |
The CRE dataset is comprised of 25+ million CRE mortgage deeds and parcels that are sourced from each county courthouse across the U.S. The data is linked back to the Business Listings information. |
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Identify C&I liens |
The UCC filings database contains 80+ million UCC filings to identify commercial and industrial (C&I) liens and link them to the Business Listings information. |
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Understand the full customer relationship |
The related properties and UCC liens component provides a complete picture of a customer’s portfolio and banking relationships by linking to other CRE properties and UCC lines tied to the same borrower’s transaction, sale deed or mortgage transaction. |
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Be knowledgeable about a prospect's concerns |
Vertical IQ Industry Reports provide hard-to-find intelligence on 500+ industries. A customizable homepage lets users quickly dive into the details of risks, industry trends, financial metrics, operations and financial challenges inherent to niche businesses of all types.
Vertical IQ News Articles are curated from multiple sources, providing intelligence before making a call. |
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Get ready for good interactions |
Vertical IQ Call Prep Sheets help users quickly get up to speed on a prospect’s industry with information on the working capital management, as well as industry structure, forecasts and quarterly insights. They also provide relevant questions to help kick-off productive conversations. |
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Manage risk spot opportunities |
Vertical IQ Reports enable lenders to better understand both industry and company risk, as well as identify how the COVID-19 pandemic and other developments have affected a target industry. |
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Leverage modeling expertise |
Access to Market Intelligence’s in-house modeling team helps customize data analysis and display to address specific issues of interest. |
Key Benefits
The head of market research was excited about how such detailed information could come to life to lay the groundwork for the expansion strategy, plus help penetrate markets going forward. He said the capabilities answered the important “who and how” questions and decided to subscribe to the solution set in order to:
- Save hours of market analysis time with access to extensive location information that would help ensure that new sites were in vibrant areas that could support continued growth.
- Quickly identify important business development opportunities to get an edge on the competition and diversify the portfolio as planned.
- Help build the knowledge and sales skills of the frontline member business lenders with detailed industry information and prep sheets to guide rich and relevant conversations.
- Create powerful presentations for the C-suite to succinctly highlight the growth possibilities by overlaying data on underserved regions, business opportunities and competitor activity to provide a clear and holistic picture.
- Rely on top-notch support for training and ongoing questions to maximize use of the capabilities.