RANCHO CUCAMONGA, Calif.–Investments in real-time fraud management tools are seeing a strong payback, according to CO-OP Financial Services.
Eric Porter, EVP of business development and marketing, told Credit Union Journal that in January alone the 557 CUs on the company’s Falcon real-time fraud detection solution prevented almost $1 million in fraud. “That is a huge savings, which goes right to the bottom line.”
CO-OP has also seen credit unions increasingly spending money to acquire analytics programs to mine member data. “More credit unions want to know who their members are, where they are shopping, how often they use their debit card...That helps them get a profile on who they need to market to. Analytics can help a lot with increasing cards transaction volume and interchange.”
The increased interest in analytics, surmised Porter, comes from big banks and online companies, like Amazon.com, stepping up the use of data-mining tools. “Credit unions need the tools to remain competitive. CUs need to know the correct products to market to their membership, and to know who is an active member and who is not.”
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