Marketplace Newsletter

In this issue:

From Laura’s Desk

Free Webinar: The Dos & Don'ts of Technology

Risk, Fraud and Identity Protection

Are Your Digital Disclosures Getting Through?

Watch It Again

The Expertise That’s Driving Real Estate Valuations

FREE WEBINAR: Uncover hidden treasure in your vendor contracts

Converting card fraud into a positive member experience

FREE WEBINAR Help More Members Become Homeowners in 2021

Upcoming Webinars

Subscribe to Marketplace


From Laura’s Desk

Welcome Spring!

As the weather begins to warm up, more and more will be looking forward to enjoying outside activities.  This is the perfect opportunity to remind you of our partnership with Kentucky Kingdom & Hurricane Bay.  

We are happy to be able to work with Kentucky Kingdom & Hurricane Bay once again to help your credit union offer another “perk” to credit union membership.  With in-branch flyers and online web banners already available for your use, your members can simply click and purchase their deeply discounted tickets.     

 PLUS:

  • This service is of NO CHARGE to your credit union.
  • It drives TRAFFIC to your credit union's website.
  • It is a great VALUE-ADD to credit union membership.
  • It is LESS labor-intensive with no physical tickets to count. 

For more information, or to start marketing this partnership to your members, visit https://www.kycul.org/e-consignment-store-marketing or contact Andrew Barr at (502) 855-8208 or [email protected].

Your Vision. Our Purpose.

Sincerely,
Laura Parrish
VP, Association Services

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Free Webinar: The Dos & Don'ts of Technology 

Join AdvantEdge Analytics’ Sarah Randle, Sales Analyst, as she talks about what to do – and not do – when it comes to working with partners and what to look for in a good partner.    

During the 45-minute session, you will: 

  • Learn why easy-to-use technology creates speed to value
  • Experience what good data visualizations look like and why that's important in making data-driven decisions
  • See examples of tools that can help you improve efficiency, accelerate growth and harness new technology across your organization 

You will walk away feeling more confident working with technology partners, armed with real examples of what data technology partners can do for you. 

Webinar Dates, Time & Links: 

  • To accommodate busy schedules, the same webinar is being presented on two different days: 

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Risk, Fraud and Identity Protection

What’s happening in the credit union market? Everything, when it comes to ID Theft and Consumer Monitoring. Bad actors across the globe strive to take advantage of every gap in procedures and real-world emergencies to harm your members. 

We, in the credit union movement, are all impacted by the negative effects of fraud. The individual member, credit union and association all pay part of the cost of the belligerent actors. What we saw in the last full year of available data, 2019, shows us over $3 billion in out-of-pocket costs and almost $17 billion in losses. These staggering numbers mean this subject is at the top of your members’ minds with more than four out of every five Americans concerned about fraud. 

Your members are worried and are looking to their credit unions for guidance.  Almost seven out of ten consumers state they are more likely to stay with their financial institution if protection is offered. More than half of those interviewed express a willingness to pay for a service. 

The fraud and account takeover problem is real, growing and serious with more than 13 million identity theft victims in 2019 alone. So, what is the ounce of prevention to negate the need for a pound of cure?  Simply put, it’s leveraging data and technology in a comprehensive Identity Protection Service. 

There are two key aspects for credit unions to consider when determining a solution to prevent, detect and resolve identity fraud; understanding the technology & data in use and determining what solution set can be offered as a member benefit versus a paid service. 

First, the technology and data. When you are engaging with current or potential partners, ask about the following: 

Monitoring- What type of monitoring solutions are in place and do they include dark web monitoring?

Alerts- How does their monitoring system work and what triggers an alert to the member? Do their alerts only trigger for credit activity, or do their alerts include DDA events as well?

Resolution Support Team- When a negative event occurs, does the partner have a resolution team in place with the proper training? This should include anything from an attempted account takeover to a lost/stolen event.               

An important note, your solution above should always be on, 365 24/7. 

There is a fairly standard structuring of member offerings in the credit union industry. A free to the member basic solution and a premium option(s). 

As an example, the basic service often includes lost & stolen assistance, insurance, and fraud resolution. A solid member benefit that is almost industry standard at this point. 

The premium option(s) offer a wide variety of services, which require some depth of analysis. A lot of the additional services you choose to offer at a premium or include in a basic benefit package should be determined by your member profile. Although everyone is a target and, therefore, everyone needs basic protection, not everyone needs $1 million in insurance or child SSN monitoring. 

While it is impossible to adequately relay both the need and technological complexity of a properly applied credit monitoring and ID theft solution, now is the time to review, adjust, and train before the next data breach costs you and your members time, money and reputation.

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Are Your Digital Disclosures Getting Through? 

Don’t overlook the importance of overdraft program disclosure for remote onboarding 

By Cheryl Lawson, JMFA EVP-Compliance Review 

Growing consumer interest in digital banking services—combined with the necessity to modify normal in-person operations during the past 12 months—has caused a major change in the way credit unions connect with members. Over a very short time span, the options available for new account openings shifted almost entirely to online and mobile channels, leaving a gap in personalized, one-on-one interactions. 

No doubt, as traditional service options have been disrupted, enhanced technology and digital capabilities have provided increased flexibility and convenience for consumers when opening accounts and completing financial transactions. 

However, when it comes to offering an overdraft service that provides your members with peace of mind when faced with financial shortfalls, vigilance in providing ongoing communications cannot be overlooked. To establish member trust and remain compliant, care must be taken to ensure easy access to consistent program messaging and digital support functions that help members resolve their issues with a full understanding of how the service works and how to use it responsibly. 

Communication is essential for successful onboarding

According to the results of a recent onboarding study, despite the importance of early engagement, only about half of the financial institutions surveyed had an onboarding process in place. Among those that did, the process had not been optimized for the level of communication desired by account holders. 

Establishing a more personalized, information-driven approach to your digital onboarding strategy is an effective way to reinforce your new account experience. Plus, it can increase members’ understanding of how your overdraft program works and build confidence in your commitment to helping members meet their financial needs. 

1. Maintain an accessible, informative online platform

Following are steps you can take to create a digital connection with members and extend your credit union’s focus on service beyond the branch-driven experience: 

  • Provide an easy-to-use online platform where members can learn more about their overdraft coverage options, including the ability to opt-in or opt-out of extended coverage for electronic and ATM transactions.
  • Increase your platform effectiveness by installing chat functionality that mimics the face-to-face interaction that members have similarly experienced through branch account opening.
  • Adhere to all ADA Accessibility requirements on your website, such as “text to speech” screen readers and text captioning for members who may have limited vision, as well as the ability to opt-in or opt-out with just a keyboard—without using a mouse or touchscreen.
  • Monitor your online platform regularly to make sure it is functioning properly. Your written content should also provide clear program disclosures, updated with the latest regulatory information to ensure full compliance. 

2. Renew your commitment to employee education

Many employees continue to work remotely and may have fewer face-to-face interactions with members. This is even more of a reason to revisit your training program to ensure all staff members who interact with members are familiar with all aspects of your overdraft program. Your staff should be consistent with their explanation about the service to your members and have the confidence to address any errors that may occur in program processing.

  • Identify ways for employees to connect with members, opening conversations with “check-ins” so that consumers are warmly engaged.
  • Develop phone scripts that incorporate compliant discussion language and train front-line staff on their effective use.
  • Offer web-based learning options for staff, e.g., webinars and videos on Regulation E, overdraft alternatives and navigating your online portal to increase their ability to offer value in their conversations with members.

3. Stay the course of building long-term relationships

Follow up by phone with all accounts opened digitally to welcome new members, to see if they have any questions, to make sure they chose the right account for their needs and to explain their overdraft coverage options in a compliant way. Provide ongoing messages via email and letters throughout the life of account relationships to keep members apprised of their account status and overdraft program usage. This will help them with financial planning and reinforce the value you place on their financial well-being. 

Provide consistent messaging across channels

Going forward, whether or not consumers continue to rely heavily on digital access to transact their financial business, a commitment to ongoing communication is essential. Failure to provide consistent, up-to-date information about the products and services you provide—like overdraft privilege—can increase member confusion and reduce their reliance on your credit union as their primary source of financial services. What’s more, it can lead to increased risk of compliance and legal scrutiny of your program’s processes. 

An overdraft program provider with knowledge and experience in program implementation, management and the changing regulatory environment can ensure your onboarding and account service strategy includes all of the components you need to keep your members informed and confident when financial challenges arise, whether they are accessing your services in a nearby branch or via their choice of digital channels.

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Watch It Again 

CO-OP’s Q1 Quarterly Update Livecast is now available on-demand so you can replay segments you want to take a closer look at and access our event materials including the slides and premium content shared at the event.  

WATCH RECORDING

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The Expertise That’s Driving Real Estate Valuations 

Clarocity is a full-service, residential and commercial real estate valuation company, that offers products and solutions, coast to coast. They differentiate from the industry by leading with data and technology, supported with innovative hybrid and bifurcated products, and where needed, traditional appraisal reports. In addition to the partnerships that they form with their credit union clients and associated Leagues, Clarocity supports their relationships by working with you to ensure regulatory compliance and best practices to improve the Member experience, while reducing your overall valuation costs. 

  • The Valuation Experts. Clarocity leverages its decades of combined experience to deliver results that tackle our client’s toughest challenges. 

  • Client Experience. Clarocity Valuation Services is dedicated to providing an exceptional client experience. 

  • Powered by Technology. Unlike most appraisal firms, Clarocity leverages its proprietary technology to provide proven innovative solutions that can’t be found anywhere else. 

Account Manager, David Wilburn, said, “We did a demo for a credit union in Charlotte, NC by pulling our AVM on a property they had just recently paid $450 for a full 1004 traditional appraisal. Our AVM gave a 90 Confidence Score and hit the value their appraiser hit.  The difference...it took us 5 minutes and $70 to input and get a value on our AVMPro compared to the three weeks and $450 the appraiser charged to do the traditional appraisal report. It turned into an instant client. It only makes sense and cents.” 

Interested in learning more?  Schedule a brief 30-minute call to discuss the valuation needs of your credit union. 

Click here for access to my calendar to schedule an introduction

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Uncover hidden treasure in your vendor contracts 

WEDNESDAY, 3/24 AT 10:30 AM CENTRAL 

Looking to reduce costs in 2021? It may be easier than you think. With all eyes on the bottom line these days, many credit unions are discovering that they’re sitting on a goldmine—in their vendor contracts. In this session, learn how to reduce your expenses and secure the absolute best deals available.

In this webinar you’ll learn: 

  • The ideal time to start the contract negotiation process
  • Common misconceptions and why you could be missing the savings opportunities
  • The simple steps required to maximize your time and money
  • How other credit unions are reinvesting their savings

Registration Link:

https://jmfa.webex.com/jmfa/onstage/g.php?MTID=eb5a356c39a15c68033c53d6f843a0767

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Converting card fraud into a positive member experience

by Steven Ryniec, LSC 

It’s widely recognized in the payments industry that attempted fraud incidences increase during times of crisis, and the coronavirus pandemic is the latest example of this. We’ve seen a year-over-year increase in fraud attempts, with this trend continuing into 2021. Having the right tools in place to stop fraud before it happens is just one piece of the puzzle when managing the expectations your cardholders have. How your credit union responds is paramount to the experience your member has if and when fraud hits their account.   

Your members have become more reliant than ever on their debit and credit cards as the main source of payment for day-to-day purchases. They also carry the expectation that access to their funds will be at their fingertips and without interruption. When an account is compromised, having immediate solutions in place that ensure secure and convenient access to their funds can ease the stresses associated with fraud, delivering value to the member and ultimately top of wallet status for your card.  

This can be accomplished through technologies that include digital card issuance, member card controls and tokenization. Your credit union can be the oasis during a time of fraud recovery, while also building trust as your primary financial institution. 

Digital issuance provides the ability to issue a replacement digital card on demand and provision the card into a mobile wallet for immediate use online and in apps. While the physical card is in transit, security features are in place that restrict in-person transactions until the physical card is in-hand and activated by the member.  

Card controls via online platforms or apps combined with tokenization can help protect members from fraud. Card controls allow your members to turn their cards on and off, track spending, get real-time alerts, dispute charges and report missing cards, all of which help minimize the impact of attempted fraud.  

Tokenization goes a step further by converting sensitive information into tokens which mask the PAN data. This token is then transmitted for authorization thereby averting a fraudster from capturing your members’ critical card information. Members using their mobile payment wallet instead of cards can also utilize their phone’s security features to block others from accessing sensitive data. By protecting your members’ information, tokenization helps strengthen members’ confidence in your credit union while making purchases using their credit union cards safe and convenient.  

Digital technology has a strong, positive impact on how your credit union can address the member-facing side of fraud. It’s key to building stronger, ongoing relationships with your members as fraud attacks increase. Quick card issuance to replace compromised cards provides added convenience when members are faced with fraud while added protections increase peace of mind.  

Keeping members informed through your marketing efforts is important to developing their trust. This means educating members about the benefits and availability of these digital services and protections. Clear, regular communication can improve member understanding of how your credit union is there to help them fight fraud and get on with their lives if it occurs. 

LSC and our partners are here to help you understand the digital payment technology available to you. Contact us at 1-800-942-7124 to learn more.

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Help More Members Become Homeowners in 2021

Presented by CUNA Mutual Group and MGIC 

Homeownership has long been referred to as the American Dream. It provides stability for families and neighborhoods, in addition to having a significant impact on generational wealth. So why don’t you have more homeowners among your eligible members? It could be because they think they need a 20% down payment to qualify for a mortgage. In fact, saving for the down payment is routinely identified as the greatest barrier to owning a home. 

CUNA Mutual Group recently partnered with Mortgage Guaranty Insurance Corporation (MGIC), a private mortgage insurance company that is the pioneer of PMI. With the help of MGIC you can offer mortgages to your members with as little as a 3% down payment, while providing protection against default to your credit union. 

Join us on March 24, 2021, at 11 a.m. CST for a complementary 1-hour webinar presented by MGIC that will explore how our current economy is impacting potential homebuyers. The information shared in this brief online session will help you to: 

  • Consider, compare, and conclude which mortgage options are best for your members
  • Understand what private mortgage insurance is and how it works
  • Differentiate and compare PMI from FHA
  • Discover resources available to help educate your members 

This program is free to KCUL Member Credit Unions, but your advance registration is required.  

By clicking the link below, you will be directed to the Louisiana Credit Union League website. 

REGISTER TODAY

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Upcoming Webinars

To register for any of these webinars, please go to https://www.cunamutual.com/resource-library/webinars

Risk and Compliance Webinars

Office Hours: Lending Risks**

4/14/2021 1:00 PM (CT)
Connect with our CUNA Mutual Group Risk Consultants, risk and insurance partners, and your credit union peers to ask questions regarding the latest risks, loss trends, and mitigation tips in the lending landscape.

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