BROOKFIELD, Wis.—It’s a “slur” that credit unions are slower to adopt technology than banks. In fact, credit unions often adopt technology banks won’t, just because it will benefit members, according to one person.
The reason credit unions are often fast-adopters is a willingness to listen to what members want, said Ryon Packer, senior vice president for Credit Union Solutions at Fiserv.
Packer’s comments come as part of a CUToday.info series on “fake news” in the credit union business that examines myths and misconceptions within and about the CU community.
When it comes to technology, “Banks are more on the ‘gee whiz’ capabilities and less on member relationships,” according to Packer.
Banks, in pushing what they believe is their technology leadership, invest in advertising and promotions to make members of credit unions and other institutions think, “I wish I could do that,” according to Packer. That messaging often comes even when credit unions are already ahead of the banks in a specific technology, observed Packer.
He related that one of Fiserv’s credit union clients had a member who told them he was switching institutions to take advantage of remote deposit capture. In fact, the credit union had been offering the service for the past two years.
“Credit unions have traditionally, and especially today, had such a stronger ability to listen,” he said. “They can build a financial model and go forward without worrying about profit margins.”
Credit unions can also be quicker to market with a new idea. For instance, credit unions have adopted technology that banks have been slower to adopt.
Embracing Biometrics
One example is biometric technology. Packer said biometrics work for both credit union members and staff by getting to the transaction more quickly.
“Having to authenticate yourself creates a barrier and interrupts the flow of a conversation,” he said.
“Verifast,” a biometric technology deployed by Fiserv, offers instant verification of identity via a hand reader that reads the movement of blood within the veins of the palm of the member. The member does not even have to touch the device but instead can hold his or her hand in the air over a sensor.
Packer said palm-based biometrics “is just as secure as any other biometrics.” The technology is integrated into a member-facing tablet and also into the mouse an employee would be using.
“It is pretty cool,” he said, noting the very serious application fraud mitigation.
Packer said Fiserv has seen good adoption of the Verifast solution by credit unions in the short time since it was introduced last year. The first adopter was Gesa Credit Union in Richland, Wash.; currently, there are about 50 financial institutions using Verifast – about 30 for customer/member authentication and about 20 for employee authentication.
Going Deeper on Scores
Another example cited by Packer of credit unions adopting technology because of a deep concern with benefiting members is credit scores. Many banks provide access to FICO scores, but Fiserv’s Credit Sense product goes deeper, he said.
With Credit Sense, credit unions can provide “a very robust education program” about credit to members. The solution can also provide data credit unions can use to offer other programs to members at just the time they might be wanting it, Packer said.
For example, a member accessing a credit score could trigger an analysis that might show the credit union it has a better rate or term on an auto loan for its member than its competitors are offering.
With Credit Sense, a person's credit score can be displayed within the online or mobile banking user interface alongside their account information. Additional insights and offers are tailored to each user. Credit Sense incorporates technology from SavvyMoney, and is available through multiple core account processing and online and mobile banking platforms from Fiserv.
“The credit union has a direct channel to the member,” Packer said.
The CU also receives “in-context” data that can benefit both the member and the credit union, according to Fiserv. An early adaptor of the product is Star USA Federal Credit Union, Charleston, W. Va.
—Mark Fogarty