Open Source Software Open source analytics provide universal and often free access to a product’s design and can be a cost-effective way for smaller banks to launch new products and services quickly. Several popular open source software tools offer data analysis applications for banks. AI AI can synthesize large volumes of data faster than most tools. It identifies nonobvious patterns and inconsistencies, making it ideal for loan underwriting and fraud mitigation. A growing number of open source AI platforms are available for smaller banks. Third-Party Specialists Partnering with a specialized third-party provider can be a cost-effective strategy for banks limited by technology and employee capacity constraints. Starting Small and Other Considerations Experts advise smaller banks to begin data analysis slowly. Take small steps and learn from them. Let one success lead to another and use those victories to fund future efforts. Along the way, weigh these considerations: • Consider hiring a data analyst or data scientist to start analyzing data. • Decide whether to keep data analytics in-house or outsource it. • Consider aggregation tools that combine data from different systems for better insights. • Map out current data sources and systems to understand gaps and opportunities. • Consider roles like chief data officer to oversee data strategy and execution. Community banks have a unique opportunity to thrive by combining local expertise and personalized service with data-driven insights and automation. This combination can help level the playing field against larger competitors. BHG has been supporting community banks across the nation since 2001, providing access to the most super prime borrowers in the nation. Many of your peers in Colorado utilize BHG to create portfolio diversification, increase interest income, and as an alternative to traditional investments. Today, banks are buying the highest credit quality loans BHG has ever produced at incredible yields, making it the perfect time to explore the loan program. Contact Keith Gruebele at (954) 263-6399 or kgruebele@bhg-inc.com for more information. Community banks have a unique opportunity to thrive by combining local expertise and personalized service with data-driven insights and automation. 9 Colorado Banker
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