| | JUNE 20199CIOReviewfaster. The challenge isn't only in keeping up with the various payment methods, but also in maintaining a high-level member experience even though fraud prevention sometimes requires member interaction. Targeted phishing attempts, malware, skimming, spoofing, and account take-over are some of the threat vectors we see engaging our members on a regular basis. We've even seen solicitations from a spoofed phone number appearing to belong to CUA. Despite the best efforts of our electronic services department to remain behind the scenes to catch and deter fraudsters, it is sometimes necessary to speak directly to a member regarding a payment or card transaction.Ideally, this inconvenience would be avoidable, but the fraudsters are sometimes so savvy that member interaction is required to verify the legitimacy of the transaction. Our fraud prevention efforts have expanded vastly as we have adapted from a traditional brick and mortar credit union to one that provides a full suite of online and mobile capabilities to our members. Recently, we have employed data analytics and artificial intelligence to help identify and prevent potential fraud. Credit Union of America believes that the payment and card space is an area where we can enhance our relationship with existing members as well as attract and retain new members. We have multiple resources that focus on industry innovations and work diligently to remain near the forefront of innovation. To remain relevant, we offer the same payment avenues as the largest financial institutions; Examples of these payment methods include Apple Pay/Google Pay, debit and credit card offerings, integration into digital wallets, person-to-person and account to account transfers, etc. The concept of "top of wallet" is something we discuss frequently, meaning that CUA strives to be the "first pick" or card/payment method of choice for our members. In order to achieve "top of wallet" status, we are active and available in as many payment methods and channels as possible. Other ways Credit Union of America strives to achieve "top of wallet" status include offering targeted rewards, which are driven by data analytics and by allowing our members to customize notifications and alerts to define how and when we communicate with them. It's also worth mentioning that the CUA focus on member serviceleads to apersonal touch that is quite different from what our members can experience elsewhere. Even in today's technology-driven environment, it's sometimes our humanity that differentiatesCredit Union of America from the competition. To that end, as we continue to deploy and refine technologies to make our members lives easier, we will always meet members on the avenue of their choosing, including face-to-face at a branch or on the telephone with an actual person in our service center. Today, CUA members have become accustomed to sending and receiving money with a click, a tap, or an email. We can't be sure what tomorrow brings, but we can be sure that it will bring new and exciting methods for members to move money faster and easier. Tremendous investment in mobile payments and decentralized banking technologies continues to fuel a major shift in the industry. Some reports estimate that the investment over the past five years has exceeded $100 billion. Despite warranted fears around the security and privacy implications of this new world, next-generation payment methods are growing and evolving rapidly. Credit Union of America will continue to rise to the challenge of protecting our members while keeping pace with the change in the environment. Consumer expectations have found their way from consumer goods into the financial arena, with the advent of products such as five-minute mortgage approvals and two-minute checking accounts
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