Payments Could Develop Into Costly Development
LAKE MARY, Fla.-The entire arena of emerging payments and online money movement is evolving so quickly that Sam Kilmer is concerned some CUs are paying more attention to keeping pace with competitors rather than preventing fraud via these new delivery channels.
Kilmer, VP of market development for Harland Financial Solutions, said that historically credit unions have been innovative when it comes to developing delivery channels.
"It is very common for them to take a ready-shoot-aim approach with new technology. That is OK to do that in some business areas. But what we are finding with online and mobile banking, and online money movement and account opening, is that credit unions need to do better and make sure they have the resources and systems in place to protect those channels from fraud attacks."
Kilmer sees this area as a good fit for a shared service arrangement, where vendors stay abreast of the latest fraud approaches and help CUs with monitoring over the new delivery channels.
"We have a lot of resources in place to serve hundreds of credit unions in an outsourced environment. Whereas if a credit union is managing this fraud risk in-house, we think it is difficult for them to bring the right resources to bear. Vendors can do this work for hundreds of credit unions, see a much bigger fraud-risk picture, and manage costs better."