NSCU’s Road to Corporate Business Intelligence

Presented by: Michael ZywickiSeptember 24th, 2010

North Shore Credit Union Founded May 7, 1941 by deep-sea fisherman and

shipbuilders Head office in North Vancouver. 300 staff. 11 retail banking branches on the North Shore, in

Vancouver, and Whistler (new Broadway branch scheduled for Q2 2011)

$2.03 billion in assets under administration 41,000 members:

36,000 retail/personal memberships (approx. 25,000 households)

5,000 business memberships (SME, SOHO) Financial Spa/Experience based relationship banking

Partnerships Temenos:

Headquartered in Geneva and serves over 1,000 financial institutions in more than 125 countries.

T-24 Banking System B.I. tool called Insight

Primisyn Provides Business Intelligence and profitability

solutions Services 26 Credit Unions across Canada

…Both Microsoft partners

Where did we come from - NSCU evolution over last 10 years: It is a tale of maturity of three main departments:

> Sales and Marketing> Finance and Treasury> Operations and IT

Where are we today.

NSCU B.I. Timeline

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NSCU 6-10 years ago CRM implemented Microsoft consult to build DW end of 2004.

I.C.E is built and refined. Primisyn profitability and Treasury capability

built. Profit and member information reports and

cubes being conceived and developed Operations rationalizing all business flows Crystal and standalone Excel workbooks are

report vehicles.

Timeline…decision support

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Warehouse

Reports

30d 60d 90d 180d 1y 2y 3y 4y 5y FlexLiquidity 0.20% 0.20% 0.20% 0.20% 0.20% 0.20% 0.20% 0.20% 0.20% 0.20%CapitalSwap/option 19 19 20 27 -35 Spread 0.20% 0.20% 0.20% 0.20% 0.20% 0.39% 0.39% 0.40% 0.47% -0.15%

interp interpC-DOR/BOND 3.20% 3.26% 3.36% 3.59% 3.83% 3.70% 3.72% 3.82% 3.93% 3.83%

Hurdle Rate 3.40% 3.46% 3.56% 3.79% 4.03% 4.09% 4.11% 4.22% 4.40% 3.68%Posted Sheet(Golden- 2.45% 2.54% 2.72% 2.97% 2.25% 2.45% 2.60% 3.00% 3.25% 2.25%

Spread to posted 0.95% 0.92% 0.84% 0.82% 1.78% 1.64% 1.51% 1.22% 1.15% 1.43%

Risk Adjusted Deposit Hurdle RatesNovember 29, 2005

Excel driven Reports

NSCU 3-6 years ago Marketing and Sales develop data driven

target market strategy Marketing, Finance and Treasury mature to

core BI (data driven decision support) pillars.

Excel and MS Access Databases emerge as core

DW expands and ECM is developed. Conversion to new banking system decision

made in 2007

Timeline…Shift to develop Strategy

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> Break-out point

Marketing as Sales primary Strategy Focus

Source: Council on Financial Competition (CFC), May 2004.

Marketing Based ModelsFuture Potential

Low 20% Middle 60% High 20%

Current Value

High 20% Harvest: 37 Harvest: 301 Protect: 6914

Middle60%

Harvest: 666 Retain: 5872 Invest: 337

Maintain: 12436

Grow: 2447

Low20%

Min. Cost: 6549 Invest: 702 Invest: 1

Data relationship Place holder for database slide

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NSCU 1-3 years ago… Marketing and sales shifts from strategy build to

implementation to target market

Feb, 2008…Better and more relevant information Indentified by all senior managers as #1 need to deliver growth

Next evolution of warehouse and technology infrastructure planned

Timeline…

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NSCU 1-3 years ago Finance’s Line of Business (LoB) develops as core

decision support centre

3 year banking system conversion project went live November 2009

BI one of top 3 initiatives for the company for 2010

Next evolution of warehouse and technology infrastructure planned

Timeline… (cont’d)

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Push BI to Sales

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Strong Pillars Developed

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TDWI CBI Maturity Model

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Overall Score

Delivery

Development

Data

Architecture

Value

Funding

Sponsorship

Scope

0 2 4 6 8 10 12 14 16 18

Other FI's

NSCU Score

TDWI CBI Maturity Model cont’d

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NSCU Today Full corporate BI strategy in place Structure created to support

project/program 3 phase approach to deliver wins New warehouse structure to deliver on BI

vision

Timeline

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BI Charter and Value Prop. Corporate BI Strategy:

On-time Information Accurate Answers Valuable Insights Actionable Conclusions

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BI Organization Structure

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Implementation Project Program

Phase 1 Phase 2 Phase 3 Phase 3+

Data Match-up Banking system and General Ledger

Daily Automation

Profitability and CRM integration

Customer centric data-segment, demographics Models & Algorithms

Business as Usual (DNA): Efficiencies Revenue enhancements Improved customer experience

NSCU today

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> April - August

> September-

November

> Early 2011

> Ongoing

Data relationship Place holder for database slide

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Integrated views, examples

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Integrated views (cont’d)

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Integrated views (cont’d)

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Identification of need did not lead to action Critical mass of pain delivered action Leveraged the existing strong pillars as reasons to

deliver more in a better way Sell, sell, sell the benefits of BI. Major corporate strategy shifts required creation of

pillars of B.I. ( i.e., Marketing, Treasury, Finance) Evolution not Revolution… Our culture did not

allow us to “leap forward” and skip over necessary evolutionary BI steps

Learning's on the Road to Corporate B.I.

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Questions

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