DENVER–The CUSO CU Ledger is reporting three credit unions have successfully implemented its MyCUID as part of a pilot program.
The solution creates a unique consumer authentication and eliminates the need for usernames and passwords not just with the credit union, but with other providers as well.
“Credit unions leveraging this technology can now provide the most secure and private way to connect with their members, creating a high standard in the financial services industry, while providing an unparalleled member experience,” CULedger said.
Participating in the pilot program have been employees and members of UNIFY Financial Credit Union in Tennessee, Desert Financial Credit Union in Arizona, and TruWest Credit Union in Texas, all of which have tested and provided feedback into the user experience for MyCUID through individual pilot launches, according to CULedger.
The CUSO said MyCUID is the first Know-Your-Customer (KYC) compliant, member-controlled, interoperable decentralized digital credential.
Supporting Call Center
“All three organizations implemented MyCUID to support their organization’s call center operations, streamlining the identity verification process for both employees and members,” CULedger added.
The CUSO said the credit unions chose to pilot MyCUID in their call centers, specifically around high-risk transactions, because phone transactions are a high-friction channel that fraudsters find effective and least expensive to attack. The three credit unions are also exploring pilots for various different uses of MyCUID, such as wire transfers, enrollment at new account opening and mobile integration, CULedger said.
“MyCUID, in its simplest form, is setting the standard for digital identity and authentication for all systems, starting with credit union industry systems,” said Ron Amstutz, executive vice president of Desert Financial Credit Union. “Once my credit union fully identifies who I am and issues my MyCUID credential, other institutions like medical and government can trust and accept it too. Plus, we’re excited to eliminate the need for usernames and passwords. I have hundreds of passwords and imagine many of our members do, too. With MyCUID, we’re able to reduce that burden with a safer, more secure option.”
CULedger said that previously each credit union relied on traditional methods to verify a member’s identity, such as confirming transaction history or asking knowledge-based, security questions.
‘Simple and Quick’
The CUSO added that in addition to streamlining the verification process, the credit unions sought CULedger’s solution to address the growing fraud attempts facing all industries. On average, every dollar of fraud costs a credit union $2.92 and negatively impacts the member-institution relationship, CULedger said.
“Our members are already embracing this new method of authentication and sharing their excitement with our team,” said Gordon Howe, president and CEO of UNIFY Financial Credit Union. “We’ve been told that the enrollment process is simple and quick, and that they feel more secure when calling into the call center. We are ecstatic to eliminate friction historically associated authentication in a way that keeps both the member experience and data security at the forefront of the interaction.”
According to CULedger, members using MyCUID can confidently, securely and quickly verify their identity by using the biometric function through their smart phone, such as voice, fingerprint or facial recognition.
“Initial findings from the pilot program indicate that the average time to verify a member’s identity has been reduced from the industry average of more than 50 seconds to ten or less,” CULedger said.
Reduced Fraud Losses
The CUSO added the long-term anticipated results include a reduction in fraud losses, lower member friction and increased loyalty.
“As financial cooperatives, credit unions are more inclined to work together than their bank counterparts in order to best serve their members’ needs,” said John Ainsworth, president and CEO of CULedger. “Our solution enables credit unions and their members to connect with one another on a much larger scale than ever before. The benefits of this highly secure network of digital exchange are unparalleled to anything in the market, and our pilot programs have demonstrated the unique capabilities MyCUID provides to the member experience.”
CULedger said it will continue piloting different applications of MyCUID and move into full implementation next year, and that it is currently accepting U.S.-based credit unions to participate in its pilot programs.