WASHINGTON—Small credit unions face a difficult choice when it comes to technology—spend money on member-facing digital services that help the CU grow–or pay for shoring up cyber defenses to keep their data safe.
It can feel like a no-win choice, according to Fiserv, especially with the new FFIEC cyber security requirements coming as well as NCUA’s increased focus on protecting member data.
“The burden of compliance just keeps getting tougher and could potentially be the downfall of the small credit union,” said Barb Lowman, SVP of account processing at Fiserv, echoing a concern expressed by many in the movement.
To ease some of the pain around those new FFIEC security guidelines, Lowman said Fiserv is working with small CUs to help them “find a way to get out in front of these requirements without placing such a burden on them that it prevents them from doing other things.”
Tech Bundle
Lowman insisted that small credit unions have to be able to deliver a technology bundle to credit unions that not only keeps them competitive but allows them to grow.
“If they choose to focus on compliance rather than investing in technology that can drive profitable growth they won’t grow and they won’t survive,” she said. “They have to strike some balance here, and that is where Fiserv can help them. Without the IT staff and the budget to address growing technology needs, small CUs will have to find partners.”
Overall, Lowman believes small credit unions today are “holding their own” in the battle against cyber thieves.
“That’s a good thing and last year Fiserv doubled down on our efforts to help them in the fight,” she said.
Lowman added, however, the concern small CUs have regarding keeping up with cyber security is growing, evident from conversations during the company’s client forum held last fall in Orlando.
Tighter Networks
During the meeting Fiserv held a session on cyber security for credit unions $100 million in assets and below. Among topics discussed were what happened to trigger recent data breaches and what small credit unions can do better to protect their members from future breaches.
“We talked about how Fiserv can help them with additional resources to supplement their own resources to allow credit unions to do things such as tightening their networks as much as possible and working with third parties on penetration tests,” Lowman said. “When the session ended credit unions stayed long afterward to talk to the Fiserv cyber security experts. Small credit unions are concerned about their futures, and they are going to have to rely on partners.”