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Tech Council speaker Tech trends can affect CU
SAN ANTONIO (9/29/11)--The rapid “consumerization” of technology is changing how credit unions conduct business, including how they interact with their members, Rick Roy, CUNA Mutual Group senior vice president and chief information officer told the attendees at the annual CUNA Technology Council Conference in San Antonio.
Rick Roy, CUNA Mutual Group senior vice president and chief information officer, told the annual CUNA Technology Council Conference in San Antonio on Tuesday that the “consumerization” of technology is changing how credit unions do business. (Photo provided by CUNA Mutual Group)
Consumerization of information technology is the increasing influence consumer products or technologies traditionally used by employees for personal use have when they are brought into the corporate environment for business use, Roy explained. He identified social media, mobility, cloud computing and data security/privacy as four key trends credit unions should closely monitor as consumerization evolves. “Social networks are changing how we talk, interact, sell, and build brands. The astounding reach social media has had on marketing and sales can create new opportunities for credit unions to reach new demographics, quickly and effectively,” Roy added. The same can be said with the explosion of mobility. With millions of mobile devices sold worldwide, smartphones and tablets are inescapable and a consumer-driven revolution. “Mobility is a powerful market differentiator for credit unions,” Roy added. Roy also discussed the increased interest and viability of cloud computing in the credit union marketplace. “Today, cloud computing has experienced a major shift from infancy to a real business strategy for many companies. We are hearing more about how insurers are adopting software as a service platforms outside their core systems of policy administration, claims and financials,” Roy said. But he also cautioned that while market forces may push toward this strategy, the insurance industry is still assessing whether it is the best solution. Roy acknowledged the potential drawbacks related to the security, performance and availability of cloud offerings. “Security for non-public, private information remains a huge concern for insurers, as it is a business issue that spans beyond just technology.” Roy also discussed the latest data security and privacy issues. “Data breaches can happen quickly, and they have profound effects on credit unions, including financial ramifications, loss of members, brand damage, regulatory scrutiny, and legal liability,” he said. Many data breaches occur both internally and externally, including theft of personal information by employees or loss of unencrypted equipment containing personal information. These threats change so frequently that it is important to constantly monitor for them. “Breaches occur from both internal and external sources, and many incidents can be easily prevented with changes in one’s internal controls,” Roy said. He provided several key recommendations for each trend:
* For social media, develop an internal and external social media policy that incorporates clear corporate messaging standards for all employees to use. * For mobility strategies, embrace mobile devices’ new levels of productivity for employees, and create a secure, “mobility choice” support model. * When addressing security and privacy, eliminate all non-essential private and credit union data and encrypt the remaining data, including data on mobile devices. * For cloud computing, beware of industry hype, but closely monitor industry progress because options are maturing very quickly; be clear on security and privacy shortcomings.
“Ensure your technology strategy can support your business strategy, and that your people and processes are lined up to help your credit union capitalize on new market opportunities that come your way,” Roy said.
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