John Lass
CUNA Mutual Group
SVP-Strategy
BOSTON — As the economy continues to falter, credit union's relevance may be stronger than ever, CUNA Mutual Group SVP-Strategy John Lass said at America's Credit Union Conference & Expo. Though the corporate assessment and shrinking margins have put pressure on the bottom line, "credit unions' many strengths not only make these obstacles surmountable, they pose an opportunity to shine even during one of the worst economic downturns in the nation's history," he argued.
With the cooperative movement as a whole averaging 10.8% capital versus the banking sector's 7.6%, CUs have the ability to be more aggressive in an environment that is already more receptive to their message and wary of for-profit financial institutions, Lass maintained. As trust in banks plummet, member loyalty continues to be strong at credit unions, he explained, giving cooperatives the opportunity to exploit their investments in the local community and continue to gain business and boost the bottom line while keeping prices lower than competitors.
Ann Davidson
CUNA Mutual Group
Risk Expert
BOSTON — New strategies and adaptations of technology by fraudsters has added to growing complexity of detection and prevention, and credit unions must implement rigorous cross-channel monitoring strategies to mitigate risk, Ann Davidson, CUNA Mutual risk expert told attendees at America's Credit Union Conference & Expo here.
Davidson warned against "silo monitoring," encouraging cooperatives to take a "holistic" approach to fraud prevention and recognizing that the best way to stop fraud is to educate employees and members and find the root causes then using a management system to stifle those triggers.
CUs must also be cognizant of the fact that many vulnerabilities do not lead to immediate losses but action must be taken at once when a security breach is discovered lest the institutions be susceptible to greater damage down the line from multiple channels.
"Once a fraudster has obtained data, we can't be sure how he'll use it to his financial advantage," Davidson said. "A stolen identity obtained in a phishing attack could later result in the creation of fraudulent checks, plastic cards or loans.
