OYCU

OYCU Case Analysis

BUSI1013 Statistics for Business
Richard Grey, Jenna Leigh, Tabatha St. Jean
Yorkville University
Dr. Dwayne Branch

OYCU

Table of Contents
Introduction......................................................................................................................................3
Analysis...........................................................................................................................................3
Results of the Pilot...........................................................................................................................4
Branch results...............................................................................................................................4
Increased loans.............................................................................................................................5
Customer Feedback......................................................................................................................5
Recommendations............................................................................................................................5
Appendix A......................................................................................................................................7
Appendix B......................................................................................................................................8
Appendix C......................................................................................................................................9
Appendix D....................................................................................................................................10
Appendix E....................................................................................................................................11
Appendix F....................................................................................................................................12
Appendix G....................................................................................................................................13
Appendix H....................................................................................................................................14
References......................................................................................................................................15

OYCU

Introduction
The objective of this study is to review the benefits of providing personalized financial
services to members of OYCU through the implementation of a Personal Financial Well-Being
Advisor (PFWA) Program. It has been shown in a previous study (Adusei & Afrane, 2013), that
Credit Unions lead to a positive impact on the economic state of a country. The intent is to
determine if the introduction of the PFWA will increase investments which will support growth
and sustainability in the economy.
Analysis
To accomplish the pilot project, existing customers were invited to join the study from
two randomly selected regions and five branches. Personal deposit and loan balances for these
customers were extracted from the credit unions banking systems as they entered the pilot study.
At the end of six months, data on the members deposits and loan balances were analyzed and a
follow-up survey was conducted. All statistical tests used within this analysis have been
completed using a .05 level of significance.
The member study consisted of a fairly even mix of men and women, with 53% of the
participants being women (Appendix A). The count of male and female participants in the study
confirms that less than 50% of the study population was male.

OYCU

The mean income of the pilot participants was $50,470 (Appendix B). Income is higher
than $48,000 based on a 95% confidence interval. A regional analysis was completed to compare
their average deposits by customers to establish a baseline for the success of the pilot (Appendix
C). It was identified during this review that initial deposits were higher in region 1. Following
the pilot, there was an increase in both regions deposits however, region 2 experience a higher
average amount (Appendix E). After the six month term the members were asked if the
Personal Financial Well-Being Advisor was beneficial to the member (Appendix G).
Results of the Pilot
Branch results
After the pilot all branchs experience positive results in terms of increase loans. Branch
1, had an average increase of 8.7, branch 2, had an average increase of 9.1, branch 3, had an
average increase of 8.6, branch 4, had an average increase of 7.4 and branch 5 had the smallest
increase of 7.1. Although, the results from the pilot were positive, there was not enough evidence
to support actual results would be different for the entire branch population. In fact, statistical

OYCU

test results (Appendix F), demonstrated there were was very little difference between the five
branches, based on 0.10 level of significance.
Increased loans
Based on the pilot results, average deposits did increase. Before the pilot, average
deposits were around 20.58k and after the pilot they increased on average to 24.58k. Through the
sample of 290 customers, the standard deviation was 4.10k, which indicates stellar growth in
terms of deposit increases. Furthermore, based on 0.10 level of significance the results support
the theory that average deposits have increased since the pilot program. This is encouraging news
for upper management as it demonstrates the positive link between the changes made and final
result.
Customer Feedback
Customers did respond well to the pilot program and results for customer
recommendations increased. Before the pilot, customers who would recommend the Credit
Union were 64%. After the pilot, however customer who would recommend the Credit Union
increased by 26%, with survey results reporting as 90% (Appendix H). Management at the Credit
Union can take comfort in these results, as the margin of error was only 0.05% these results are
further illustrated in Appendix H. From a statistical perspective, based on a 90% confidence
interval level, results can be estimated to be within 0.21% and 0.31% of projected result. These
are very strong numbers that support the success of the pilot program.
Recommendations
The Personal Financial Well-Being Advisor pilot has shown to be successful in
generating additional loan accounts and confidence in the Credit Union with a substantial

OYCU

increase in funds borrowed and referrals made to OYCU. The next step is to expand the program
to the remaining regions.

OYCU

Appendix A
A statistical test to determine if the proportions of male customers in the population were less
than 50%. Data extracted from raw data provided with Team Case Study; 0 represented male
and 1 represented female.

OYCU

Appendix B
A statistical test to see whether the average income of customers in the population is higher than
$48,000.
Mean income = 50.47172

OYCU

Appendix C
A statistical test to see whether the average deposits of customers before the pilot are different
between the two regions

OYCU

10

Appendix D
A 95% confidence interval for the difference of the two regions in loans before the pilot.

Region 1
Mean - 44.9 (u1)
Standard Deviation - 5.67 (o1)
N=105 (n1)

Region 2
Mean - 45.8 (u2)
Standard Deviation - 5.77 (o2)
N=185 (n2)

Point estimate of the difference between the means = 44.9 45.8 = -0.9
95% confidence interval = -2.72 to 0.472

*Interpretation:
The point estimate (difference) in the sample means is -0.9, which shows that the mean for
region 1 is smaller than the mean for region 2 by 0.9.
However, with a 95% confidence interval, the difference in population means can range
anywhere from -2.272 (the population mean for region 1 would be smaller than region 2s mean
by 2.72) to 0.472 (the population mean for region 1 would be greater than region 2s mean by
0.472)

OYCU

Appendix E
A statistical test to see whether the average deposits of customers have increased as a result of
the pilot.

11

OYCU

12

Appendix F
A statistical test to see whether the average increase in loans is the same among the five
branches.

OYCU

13

Appendix G
A statistical test to see whether the proportion of customers who would recommend the Credit
Union to their friends have increased as a result of the pilot.
Utilize the count function within Excel to determine the number of occurrences with a specific
response where 0 represents no and 1 represents yes.
Before the pilot results:

This determined that 105 people would not recommend the Credit Union before the pilot, leaving
the remaining 185 64% of the population recommending.
After the pilot results:

This determined that 28 people would not recommend the Credit Union after the pilot compared
to the 262 people that would. This represents a positive increase in recommendations where
after the pilot an increase of 35.5% of people would recommend the Credit Union.

OYCU

14

Appendix H
A 90% confidence interval for the difference of the proportion before and after the pilot of
customers who would recommend the Credit Union to their friends.

OYCU

15

References
Adusei, M., & Afrane, S. (2013). THE IMPACT OF CREDIT UNION FINANCIAL
INTERMEDIATION ON ECONOMIC GROWTH: A MULTI-COUNTRY ANALYSIS.
Global Journal Of Business Research (GJBR), 7(5), 71-78.
Anderson. , Sweeney, & Williams, (2011). Essentials of statistics for business and economics. (6
ed.).