FAQ
Have questions about CUDX? Check out our frequently asked questions for more information!
CUDX, which stands for Credit Union Data Exchange, is a centralized platform that enables secure sharing and exchange of data among credit unions. It serves as a collaborative space where participating credit unions can access valuable information relevant to their operations, members and the industry as a whole.
Credit unions collectively own and control CUDX through a cooperative model. This ensures that the exchange is always serving credit unions’ interests in a safe and controlled manner, according to credit union-derived standards. Each credit union individually controls their own data within the exchange.
The main objective of CUDX is to promote information sharing and collaboration within the credit union sector. By securely exchanging data, credit unions can gain valuable insights into member behavior, market trends and industry best practices not possible when limited to using only their own data. This empowers credit unions to make informed decisions regarding product offerings, risk management strategies and operational improvements.
CUDX will offer various features and functionalities, such as data aggregation, analytics tools, benchmarking capabilities and reporting functionalities. These features will enable credit unions to analyze their own performance, compare it against industry benchmarks, and identify areas for improvement. By leveraging these capabilities, credit unions can make data-driven decisions that enhance their services, drive member satisfaction and optimize overall performance. Participants in CUDX will identify the features and functions they need most via a Research & Innovation Council made up of subject matter experts they nominate.
CUDX fosters collaboration among participating credit unions by providing a platform for research projects, sharing insights and experiences, and collectively addressing common challenges faced by the industry. This collaborative approach allows credit unions to learn from each other’s successes and failures, leading to collective growth and improvement.
Security and privacy are paramount in CUDX. The platform employs robust security measures such as encryption techniques, access controls, and data anonymization practices to ensure the privacy and integrity of shared information. Compliance with all applicable data regulations and laws is a top priority for the exchange. Participants in CUDX will set security policies and monitor adherence via a Privacy Risk & Compliance Council made up of subject matter experts they nominate.
Participating in CUDX offers several benefits for credit unions, including:
- Better risk management by accessing a wider pool of data for informed lending decisions.
- Improved efficiency through identifying patterns and trends in member behavior.
- Enhanced member experience by understanding members’ needs and preferences.
- Increased collaboration through the community of practice created among fellow CUDX participants.
- Competitive advantage through access to more data for informed decision-making and improved services.
- The potential to monetize data to create revenues from approved third parties to offset the costs of operating the exchange. (Credit unions retain control of their data, and can decline to have their data included in any request to share).
CUDX enables various use cases, including:
- Data Cleansing and Enhancement: Applying AI solutions to shared data in order to clean up messy data fields, making analysis easier and more useful.
- New & More Accurate Predictive Models: Developing predictive models based on share-of-wallet evaluation, targeted advertising, consumer profiles and identifying market inefficiencies.
- Generative AI: Deploying ChatGPT services on the entire CU data set to unlock industry-level insights.
- Near-Real-Time Benchmarking: Utilizing daily data feeds for benchmarking instead of relying on quarterly reports.
- CU Data Aggregation: Combining data from financial institutions and payment providers to create a large-scale, cross-sectional, generalized dataset.
- 3rd Party Data Access: Accessing third-party data for economies of scale in procurement and gaining new insights on member behavioral patterns.
The key players in CUDX are:
- Trellance: A credit union owned and controlled cooperative that provides technical solutions, servicing, and support to CUDX. They offer innovative technology solutions and access to fintech tools such as artificial intelligence and machine learning.
- Filene: A credit union owned and controlled cooperative that strengthens credit unions through research and incubation. They bring actionable results to member credit unions and help implement innovation.
- Credit Unions: Credit unions will be the driving force behind CUDX; they will govern the councils and provide data to the exchange, ensuring emphasis on data contribution, cooperative governance, council guidance, and the overall benefit of use for all Credit Union members
- 3rd Party Data Providers: CUDX offers the potential for shared access to third-party data, reducing costs and enhancing use cases through communal learning.
The CUDX process involves the following steps:
- Credit unions securely upload their data into their designated storage area known as a “locker.”
- Aggregated and anonymized insights drawn from individual lockers are combined and made available to participating credit unions.
- Approved requestors can submit requests to access specific data from the participating credit unions.
- Participating credit unions review and evaluate the requests, considering factors such as requestor identity, specific data requested, risk and anonymization requirements.
- Once the request is reviewed and approved for legitimacy and compliance, the participating credit unions securely transfer the requested data to the approved requestor, ensuring privacy and data integrity.
CUDX is looking for new credit union participants. For more information on how your credit union could participate, fill out the survey located here.
Note: The information provided in this FAQ document is based on the details available about CUDX, and any specific questions or inquiries should be directed to the relevant authorities or organizations associated with CUDX for the most accurate and up-to-date information.
No. Your credit union does have the option to sell data to third parties through CUDX, but this is entirely optional and will never be done without your consent. Your credit union, if it chooses to participate, will have the opportunity to determine what data is sold, and to what sort of companies. Any sold data will be completely anonymized before sale. Revenues from approved data sales will be distributed pro rata back to CUDX participants.
The costs associated with participating in CUDX include the following:
- Annual Membership Fee based on the number of members your credit union has:
- Credit unions with 75 thousand members or more: $2,500
- Credit unions with between 25 thousand and 75 thousand members: $1,500
- Credit unions with fewer than 25 thousand members: $500
- Council Member Nomination Fee. Participating credit unions can nominate a subject matter expert from their staff to sit on one of three advisory councils to make policy decisions and shape the direction CUDX ultimately takes (Research & Innovation Council, Data Governance Council, or Privacy Risk & Compliance Council). If your credit union’s nominee is seated on a council, the annual fee is $2,500.
- Cloud Assessments. Costs to build, manage, and operate the CUDX cloud platform will be assessed based on various categories of participation and your credit union’s size. Those categories and their associated costs are laid out in the pro forma addendum to the prospectus found here. Future adjustments to costs will be dependent on the complexity of features and functionality prioritized by the councils and approved by the Governing Board. Additionally, future revenues from approved data monetization can be applied to offset these costs.
Additionally, CUDX has made up to 10,000 shares available for participants to invest in CUDX at $10,000 per share. Investors will earn dividends on their investments in accordance with investor agreements and bylaws.
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