Ensuring the Success of Credit Unions

September 26, 2018 Todd Clark

We’ve just returned from an intensive and informative week of meetings with CO-OP’s Board of Directors to discuss our vision and strategic plan for 2019 and beyond. 

As part of our discussion, we talked about the explosive growth in digital transformation and looked at what consumer behavior is telling us: 

  • Mobile First – this is now the paradigm for the vast majority of consumers
  • Human Interaction – in branches for complex tasks on the phone for simpler transactions is governed by trust
  • Superior CX and Technology – these are the main drivers to attract new members

Banking is becoming less about the financial transaction and more about the experience. Because our sole mission is ensuring the success of credit unions, we are undergoing continuous transformation – of our payments solutions, security expertise, fraud mitigation, products, network solutions and more to enable a digitally-driven future for credit unions and their members.

We understand that credit unions are facing stiff competition from big banks and FinTech providers who are responding more quickly to consumer expectations that are evolving as fast as the advancement of technology.  In order for credit unions to keep up with these growing expectations and technology advancements, they must embrace digital transformation and find a partner who can help them go faster. We’re here to be that partner.   

Empowering Members in the Fight against Fraud

Our approach to fraud mitigation is multi-layered. By leveraging the mobile first behavior that is driving members, we’ve put significant time and resources over the last several years to develop tools to give members control over their own security. As the first CUSO to bring card controls and alerts to the industry in 2014 with our CardNav solution, we have long seen the value of enabling this type of interaction with members. 

Card controls and alerts are adding value in a number of ways including reducing fraud costs by 40 percent, lowering service costs by 26 percent and increasing usage by 23 percent, while reducing false declines by 16 percent, according to industry research.

With that in mind, we just released our 3.2 version of CardNav, including the addition of travel events and controls, as well as other new features and upgrades. In addition to CardNav, our processing clients can enable fraud text and email alerts to bring security into their members’ hands.

COOPER Positioned to Help CUs Grow

Another critical component of our multi-layered approach to fraud mitigation is the introduction of COOPER. After six weeks in pilot testing with four credit unions, COOPER Fraud Analyzer has reviewed over one million transactions across 100,000 member accounts. During the next phase of the pilot we will be adding additional credit unions in order to increase the number of transactions flowing through COOPER and the intelligence that will be gleaned.  

We see COOPER as a valuable tool to help credit unions growth potential: by offering a 360-degree view of the member, enabling us to see what members are up to across the CO-OP ecosystem, from shared branch to ATM, credit, debit and contact center; through fraud detection, which we know from research builds trust with members to offering business intelligence that makes you smarter and able to provide products and services when and where members want them.

I look forward to sharing more updates about COOPER as we come closer to general availability later this year. 

Finally, as we head into the fourth quarter, we are wrapping up our 2018 Roadshows and I urge you to join me in Philadelphia on October 2 or Boston on October 4.  

The growth of credit unions is a deep passion of mine, of the rest of our leadership team and of the more than 1,500 bright minds that make up the new CO-OP. Our teams are working tirelessly to build the future of payments alongside our credit union partners because we just know it is key to the long-term viability of the nation’s credit unions.

 

Todd Clark

President/CEO

CO-OP Financial Services 

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