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TMG: Fraud strategies saved FI clients $20M in '13

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DES MOINES, Iowa (3/28/14)--Fraud detection and prevention strategies offered by The Members Group (TMG) saved its financial institution clients $20.3 million in potential fraud losses in 2013, the payments processor announced Thursday.
The $20.3 million figure represents a nearly 70% year-over-year increase from the $12 million TMG saved its clients in 2012.
Of the $20.3 million saved, an estimated $2.9 million was saved in December 2013 alone, due in large part to an increase in fraud resulting from Target, Neiman Marcus, Michaels and other merchant data breaches.
"Credit unions and community banks trust TMG to help them stay ahead of the fraudsters," said Karen Postma TMG's assistant vice president of operations. "We do this by putting to work the latest technologies that comprehensively monitor accounts, taking prompt, thorough action when fraud is detected and doing what is necessary to mitigate risk."
TMG's suite of fraud products and services includes several technologies used in concert with human analysis. Technologies include Fraud Text Alerts and Adaptive Control, a fraud detection solution that monitors cardholder behavior over time, assigning custom, real-time strategies on an individual cardholder level.
This type of strategy will become increasingly important as the country migrates to Europay-MasterCard-Visa standard and fraudsters shift away from counterfeiting in favor of account takeover, Postma notes.

PSCU wins social media award at SXSW

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ST. PETERSBURG, Fla. (3/27/14)--"Make Your Money Matter," a social media platform developed by the credit union service organization PSCU, has won the South by Southwest (SXSW) Interactive Award for Best Website in the Educational Resources category.
The site was also named one of five finalists for the coveted People's Choice Award determined by a public vote.
"Make Your Money Matter" is PSCU's social media platform to help credit unions communicate their value proposition to the Millennial community. The SXSW Interactive Awards were held in Austin, Texas, during an overlapping set of music, film and emerging technology festivals attended by more than 32,000 people earlier this month. The event honors projects created by the digital interactive community from a variety of industries.
"We knew we were pushing the boundaries when we created 'Make Your Money Matter' as a platform to help our member-owner credit unions connect to the Millennial generation where they live--in the digital world," said Fredda McDonald, PSCU's executive vice president/chief creative officer. "The future for credit unions lies in their ability to do what they do best today--take care of the financial needs of their members--but to do so in new ways digitally."
"Make Your Money Matter" encourages young adults between 18 and 34 years old to make the switch to credit unions from banks. The interactive campaign spreads the message with shareable copy and visual assets designed for channels like Facebook and Twitter. The platform's site also includes a calculation tool that allows consumers to see how much big banks could be profiting from their deposits.
PSCU collaborated with digital agency, Firstborn, on the site's design, content and functionality.
The initial launch of the platform included participation from eight credit unions:
  • Redwood CU, Santa Rosa, Calif.;
  • GTE Financial CU, Tampa, Fla.;
  • Baxter CU, Vernon Hills, Ill.;
  • Firstmark CU, San Antonio;
  • Bethpage (N.Y.) FCU;
  • Michigan First CU, Lathrup Village, Mich.;
  • OnPoint Community CU, Portland, Ore.; and
  • Mazuma CU, Kansas City, Mo.
PSCU will launch the platform to its entire member base in April.

IMM Updates TotaleAtlas with dashboard, enhanced workflow

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LINDEN, N.J. (3/26/14)--IMM, a provider of innovative eSignature, workflow and document solutions for financial institutions, including credit unions, has added a dashboard and additional workflow features to TotaleAtlas, its eSignature and document presentment platform.
The new dashboard gives financial institutions visibility into the document and signature status of transactions and the status of transactions sent to Document Exchange, IMM's cloud-based remote eSignature solution. The dashboard offers a more granular view into co-signed documents, showing the status of each signature needed from various individuals.
The release also features expanded support for attaching documents such as pay stubs, tax returns, surveys and appraisals. These document attachments can now be scanned in real time through the native TotaleAtlas interface and added to the document set in a single step.

Ensenta Corp. granted RDC patent

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REDWOOD SHORES, Calif. (3/25/14)--Ensenta Corp. has been granted a patent for software that improves the ability to troubleshoot and fix problems that occur when consumers and businesses remotely deposit checks using computers or mobile devices.

The technology addresses remote deposit capture (RDC) issues such as improperly taken pictures, missing information and lapses in the transfer of image data.
The patent, No. 8,660,952, "System and Method for Improved Remote Deposit User Support," is the third granted to Ensenta by the U.S. Patent and Trademark Office since March 2012.
"There is night-and-day difference in our ability to support customers, certify strategic partners and improve the user experience through this patented technology," said Richard Klein, Ensenta Corp. chief technology officer. "We are able to improve system performance to all consumers by rapidly acting on a single error report, without waiting for repeated occurrences."
Commercially available as Ensenta InstaSupport, the solution logs several dozen attributes during each user session and makes the information available in real-time through a Web portal to authorized personnel. InstaSupport facilitates an image audit trail by storing originally uploaded images as well as those processed at various stages, including failed images.
Technical support staff can help end users rapidly identify and fix problems, thus improving user experience and boosting operational efficiency.
InstaSupport also allows Ensenta to analyze data globally from successful and failed deposits across eight dimensions, such as institution type, deposit channel and mobile banking platform.

Products briefs

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  • ONTARIO, Calif. (3/24/14)-- Lending solutions provider CU Direct announced the speaker lineup for its 16th annual conference set for May 13-14 in Las Vegas . Speakers include digital marketer Mitch Joel; social media expert Michelle Morris; and Arianne Walker from J.D. Power and Associates. The conference will include experts from Experian, Equifax, TransUnion and Kelley Blue Book, as well as panels for automotive dealers and credit union lenders ...
  • FREDERICK, Md. (3/24/14)-- AffirmX is the new brand for compliance solutions provider Neighborbench . The new name coincides with the company's expansion of its patented, cloud-based platform, now called AffirmX Risk Intel Center. CEO Ken Wolff said in its initial 18 months, the company has broadened its range of services for credit unions by adding risk management to its regulatory compliance offerings ...

Diebold ties cardless ATM to mobile abilities

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NORTH CANTON, Ohio (3/21/14)--The ATM removed the teller from the transaction. Diebold has now removed the plastic card.

Diebold, a CUNA Strategic Services alliance provider, just unveiled the world's first ATM-sans-card reader and PIN pad, a machine that relies entirely on mobile authentication.

To access the machine, a user scans a unique QR code with their smart device and then the ATM authenticates it with cloud-hosted services, which provides for secure and cardless transactions.

This cardless transaction eliminates card-skimming or shoulder surfing, two common crimes that occur at ATMs.

A mobile cash access solution also has been added, allowing consumers to pre-stage cash withdrawals on their smart devices where users can pre-select the amount of cash they'd like to withdraw from the ATM.

Diebold and white-label mobile wallet provider Paydiant developed the cross-channel solutions and each hold complementary patents on the technologies.

To cater this service to Millennials, Diebold configured the interface with flick and drag actions. The ATM is also paperless and delivers receipts directly to mobile devices.

"To develop the Millennial-inspired ATM, we studied the digital and social habits of today's younger generation," said Frank Natoli Jr., Diebold chief innovation officer. "The research led us to choose mobile devices for both the user interface and the authentication vehicle to ensure seamless connectivity between devices. Adding mobile wallet capabilities further capitalizes on the mobile mentality of Millennials. Together, the technologies provide a glimpse of the future of self-service banking for today's connected consumers."

Symitar signs 25 core clients in 6 months

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MONETT, Mo. (3/20/14)--Core processor Symitar reported it added 25 new credit unions to its Episys platform in the first half of its 2014 fiscal year compared with 18 in the same period a year prior.
Of the new clients added from July 1 to Dec. 31, 2013, three have multibillion dollars in assets, and 15 added JHA Payment Processing Solutions for credit, debit and ATM card processing.
The Monett, Mo.-based core processor now supports 88 of the 208 credit unions with more than $1 billion in assets.
Fourteen of the 25 new core deals elected to implement Episys in an outsourced environment, and five existing credit union clients chose to migrate from in-house processing to Symitar's outsourced solutions--Symitar EASE and CruiseNet.

CU Solutions Group, Sprint collaborate with Spireon

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LIVONIA, Mich. (3/19/14)--With the addition of Spireon, CU Solutions Group and Sprint will build on their relationship to expand auto lending capacity for credit unions.
CU Solutions Group (CUSG), a Michigan-based credit union service organization, already has an affinity relationship with wireless provider Sprint. LoanPlus CMS is available from Sprint and Spireon and is available to credit unions exclusively through CU Solutions Group.
"With this new affiliation, CUSG can expand our offerings for credit unions to help them grow their auto lending business and better serve their members," said Dave Adams, CEO, CU Solutions Group. He added that this "powerful and proven telematics solution" will help credit unions meet their auto lending objectives.
Spireon's LoanPlus CMS is a GPS-based collateral management system that allows credit unions to capture real-time data about their auto collateral's location, movement and status. Credit unions can use the data to improve member service, collateral management and collections.
The cooperative relationship among telematics, credit unions and telecommunications offers advantages for credit union members, said Brad Jarvis, chief marketing officer and executive vice president of products, Spireon. "CUSG will now be able to bring their credit union partners powerful, easy-to-use technology for tracking vehicles, managing collateral and reducing risk while extending loans to more members, including those with credit challenges," Jarvis said.

SunCorp adds 6 member CUs

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WESTMINSTER, Colo. (3/18/14)--Six new member credit unions have joined System United Corporate FCU (SunCorp) in as many months.
SunCorp provides ACH processing services, no-fee lines of credit and investments to its member/owner credit unions, credit union service organizations and credit union associations throughout the Western U.S.

The following are the newest members of SunCorp:
  • Latah FCU, Moscow, Idaho, $68 million in assets;
  • Partner Colorado CU, Arvada, Colo., $260 million in assets;
  • Warren FCU, Cheyenne, Wyo., $494 million in assets;
  • Tri County CU, Panguitch, Utah, $147,000 in assets;
  • Citco FCU, Sheridan, Wyo., $11 million in assets; and
  • Goldenwest FCU, Ogden, Utah, $994 million in assets.

CSS provider SilverSky partners with Microsoft

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NEW YORK (3/17/14)--SilverSky, a provider of cloud-based managed security solutions, has partnered with Microsoft Corp. to become an Office 365 syndication partner.
SilverSky is a CUNA Strategic Services alliance provider.
"As a Microsoft syndication partner, we look forward to taking our established, trusted service relationships with our customers to the next level--packaging Office 365 with a comprehensive email protection solution to deliver the applications customers want and the security they need," said Tim Harvey, SilverSky CEO.
SilverSky offers Microsoft Office 365 desktop software and cloud services together as a complete enterprise solution: Word, Excel, PowerPoint and OneNote are fully integrated with professional email and calendars, unlimited online meetings and webinars, high-definition videoconferencing, instant messaging and file sharing. Customers across highly regulated industries such as financial services and retail can work from anywhere, on any device, with the support of security and protection services.
With the addition of customized packages for financial services, SilverSky builds on Office 365's security and compliance features. Microsoft Office 365 offers built-in capabilities ranging from physical security to encryption at rest and customer controls ranging from e-discovery, archiving and auditing to encryption and data-loss prevention. SilverSky supports industry-specific security needs by including pre-loaded email security policy engines and quick-start packs.

Fiserv, MasterCard announce EMV agreement

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BROOKFIELD, Wis., and NEW YORK (3/14/14)--Fiserv Inc. and MasterCard  announced an agreement to make MasterCard's U.S. common debit EuroPay MasterCard Visa (EMV) solution available for Fiserv's Accel debit network.
Under this agreement, MasterCard issuers receive flexibility to select and implement network relationships, while merchants and acquirers will continue to route transactions as they prefer, without introducing multiple applications and complicated technology upgrades. The agreement provides Fiserv clients with access to a broad EMV solution.
In January 2013, MasterCard was the first network to offer its proprietary technology to other U.S. debit networks in support of the migration to EMV and to allow the routing of PIN debit transactions over multiple, unaffiliated networks.
The MasterCard U.S. common debit EMV solution is consistent with the EMV Migration Forum's recommendations, including a single common debit application identifier and single application on each card, as well as multiple ways to verify the cardholder's identity.

Greater Iowa CU employs Diebold automation-enabled ATMs

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NORTH CANTON, Ohio (3/13/14)--Diebold, a CUNA Strategic Services provider, recently implemented deposit automation-enabled Opteva ATMs at each of Greater Iowa CU's seven branches.
Greater Iowa CU, based in Ames, Iowa, with $329 million in assets, serves more than 31,000 members throughout 33 counties in central and western Iowa. With two of its branches just minutes from Iowa State University's campus, the credit union wanted to introduce new technology to attract younger members.
"We were looking for the right advancements to deliver added convenience and efficiency for all our members, while ensuring we captured the attention of millennials," said Scott Zahnle, Greater Iowa president/CEO. "Deposit automation has answered the call, for now, but we're also exploring additional opportunities to leverage technologies that will appeal to this growing segment of our member base."
Greater Iowa's new deposit automation-enabled ATMs allow members to complete teller-like cash and check deposits. Members initiate deposits by inserting cash and checks into the ATMs and following on-screen instructions. They can verify amounts on screen before completing transactions, and they walk away with detailed receipts featuring images of deposited checks.
"Greater Iowa is continuing to evolve its service offerings to meet the demands of today's technology-savvy members, and Diebold is helping the credit union apply the right strategies for growth," said Mychal D. Kempt, Diebold vice president of North America operations. "As Greater Iowa continues to grow, we're eager to explore branch transformation initiatives that may influence technology selections and branch redesigns that will encourage more personal interactions with members."
Diebold is also delivering ATM channel management services to support Greater Iowa's fleet. For example, Diebold will remotely manage Greater Iowa's ATM screen content and push customized marketing offers to members via its content delivery offering. Credit unions can also view transaction activity records remotely.

CUNA Mutual Group retirement app wins technology honor

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MADISON, Wis. (3/12/14)--A CUNA Mutual Group tablet application that helps credit union members plan for retirement security has won a Bank Insurance & Securities Association (BISA) Technology Innovation Award.
Financial advisers, including advisers from CUNA Mutual Group's broker-dealer, CUNA Brokerage Services Inc. (CBSI), use the ZONE tablet application to present investment options for CUNA Mutual Group's new registered index annuity, MEMBERS Zone Annuity.
The ZONE is one of nine BISA Technology Innovation Award recipients. The BISA Technology Innovation Award recognizes technology innovation in the financial services industry.
"Today's financial advisers are tasked with evaluating a broad range of customer financial needs and presenting a complex set of financial solutions in an environment that is an ever-changing mix of market volatility, regulatory scrutiny and product choice," said Bob Buckingham, CUNA Mutual Group annuity product vice president. "The products that are ultimately sold are intangible, and often difficult to understand."
The ZONE is designed to remove this anxiety by providing a simple and effective tool for the adviser to present investment options, Buckingham said.
Launched in August 2013, the ZONE presents CUNA Mutual Group's registered index annuity, MEMBERS Zone Annuity, in a web application optimized for the iPad. The ZONE allows advisers and customers to customize a zone of risk and reward aligned with their investment goals using the MEMBERS Zone Annuity product.
"The ZONE app immediately turns the intangible into a real set of financial choices by visually demonstrating growth potential and downside limits by showing how a client's personal comfort zone translates into an allocation between the annuity's two investment accounts," said Buckingham.
By leveraging game-like visuals and controls, the ZONE creates a participatory experience with a personal zone of risk and reward, which is then used to evaluate how the annuity might perform over time using hypothetical investment returns and market scenarios.
Since the ZONE app's launch, mobile application usage among licensed CUNA Mutual Group advisers increased more than 400% in the last quarter of 2013. Sales of the MEMBERS Zone Annuity reached $22 million in the first month after launch, and first year sales exceeding target by more than 300% for 2013, CUNA Mutual said.

CU24, Acculynk release real-time mobile payments solutions

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TALLAHASSEE, Fla. (3/11/14)--CU24, a credit union-owned electronic funds transfer and payment-related services company, and Acculynk, a provider of secure online transaction technology, Monday unveiled POCKET2POCKET, a mobile-enabled solution that allows credit union members to conduct real-time financial transactions.
"POCKET2POCKET gives credit union members a virtual ATM that allows them to send money to a friend or family member via their smartphone, whenever and wherever they want, and with no hassle and no delay," said Mansel Guerry, CU24 president/CEO. "So if we go to lunch and you pick up the tab and I owe you $15, I don't have to worry about tracking you down, or mailing it to you. This is a service that helps small to midsize credit unions stay toe-to- toe with the big banks and larger credit unions that have deeper pockets and greater resources."
POCKET2POCKET is designed to be faster, easier and more secure than ACH-based person-to-person mobile-payment solutions, CU24 and Acculynk said.
The brandable service relies on electronic fund transfer technology, so money takes minutes to transfer to the recipient. No pre-registration is required for users to send or receive money. Users only need an e-mail address or the mobile phone number of the recipient to send funds. The recipient receives a text message or email alert that the funds are available.
POCKET2POCKET is secured by Acculynk's patented security technology. Users enter their debit account numbers into a graphical PaySecure PIN pad to make a transfer.

Business Partners CUSO names Easley president/CEO

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NORTHRIDGE, Calif. (3/10/14)--Business Partners LLC, a member business lending credit union service organization (CUSO) has named Pamella C. Easley as president/CEO.
"Pam brings Business Partners decades of financial services experience, including a proven track record in rebuilding companies in the banking and credit union industries," said Chairman David E. Maus. "She has earned a reputation within the industry as an operational and enterprise risk management expert by successfully leading risk consulting practices for credit unions, and regional and large-scale banks.
Most recently, Easley was CEO of $550 million-asset American First CU, La Habra, Calif. She previously served as managing director and senior-executive level positions within the banking industry and has built and managed multi-billion dollar loan portfolios throughout her career.

CU Direct to distribute 3% dividend

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ONTARIO, Calif. (3/7/14)--For the ninth consecutive year CU Direct, a provider of lending solutions to credit unions, will distribute a dividend to its shareholders. The credit union service organization's board of directors this week approved a 3% cash dividend for its 102 credit union shareholders.
"We continue to deliver innovative lending solutions that help credit unions improve member auto buying and lending experiences, and grow their loan portfolios," said Tony Boutelle, CU Direct president/CEO.  
In 2013, CU Direct signed new agreements with more than 100 credit unions.  At year's end, 1,072 credit unions serving 38 million members were using the CU Direct lending solutions.
CU Direct credit unions processed 723,000 loans through the company's CUDL lending platform, generating a company record $16.3 billion in credit union auto loans in 2013.  The CUSO helped its credit unions increase loan growth 19% in 2013 to become the sixth-largest auto lender in the nation.

Jack Henry acquires Banno

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MONETT, Mo. (3/6/14)--Jack Henry & Associates Inc. (JHA), a provider of technology solutions and payment processing services primarily for the financial services industry, announced that it has completed the acquisition of Banno, a Cedar-Falls, Iowa-based company that provides mobile delivery of Web and transaction marketing services.
Banno serves more than 375 financial institution customers and offers three primary services: Grip, a white-label financial aggregation application that combines mobile banking, mobile PFM and mobile bill pay in one native app; a Web solution that offers the design and development of responsive websites; and a targeted online advertising platform.
JHA and Banno initially collaborated in July when JHA's ProfitStars division partnered with Banno to sell its Grip mobile application. ProfitStars white labeled the product as Andiamo among its non-core clients who had been seeking new mobile banking alternatives. Additional operational commonalities were identified--particularly in the areas of Web design and hosting--and Banno emerged as an obvious cultural fit for JHA, the companies said.
Banno gives Jack Henry a mobile banking platform that rivals Simple, the online banking platform owned by the Spanish bank BBVA, and a website design and hosting business that fits with Jack Henry's traditional products ( American Banker March 5).

TMG white paper: Cardholders best line of fraud defense

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DES MOINES, Iowa (3/5/14)--Although fraud detection strategies are becoming sophisticated, consumers remain the best line of defense in fraud detection and prevention, according to a new white paper from The Members Group.
Even the most high-tech and human-analysis systems are improved when cardholders are actively engaged in the monitoring and detection of red flags on their accounts, according to the paper, "Empowering Cardholders to Help Prevent Card Fraud." Much of this is because today's consumer fraud tools rely on triggers set by the cardholders themselves. Although fraud detection strategies are becoming extremely granular with every new version of fraud-prevention software, a consumer remains the best at predicting his or her own purchase behavior.
Consumers are, therefore, most equipped to understand which types of transactions qualify as unusual for their accounts.
Educating consumers on fraud trends and tips for protecting themselves is one way credit unions can leverage the consumer's vantage point. Helping cardholders spot trouble before it affects them is incredibly valuable, not only for the individual, but also for the credit union.
The abundance of communication vehicles available to financial institutions today makes it easier to share a large amount of information quickly and broadly. When researching content for blogs, social channels, newsletters, emails, statement stuffers and more, consider fraud-focused tips and advice, the paper advised.
Putting fraud-prevention tools in the hands of consumers is another way financial institutions can empower cardholders. Fraud text alerts are among those tools assisting consumers and financial institutions in the identification of fraud and in the reduction of the unnecessary inconvenience generated by false positives.
Triggered by a financial institution's own unique fraud prevention strategies, fraud text alerts are customized to an individual credit union or community bank's existing program. If a particular transaction is flagged as risky, human-fraud analysts take a look at the transaction in the context of the account and the existing strategies, and if warranted, verify the transaction by texting the cardholder.
To read the entire white paper, use the link.

Dakotas' ag/business CUSO reports $40M in 1st year

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BISMARCK, N.D. (3/4/14)--In its first full year of operations, Midwest Business Solutions (MWBS), the Credit Union Association of the Dakotas' agricultural/commercial loan credit union service organization, reported total loan closings of more $40 million and outstanding balances of $20.3 million at the end of 2013. 
"The core of our group is the equity members and subscribers that we have," said MWBS President Phil Love, adding, "We paid two of our equity partners more in one year than they invested into our CUSO." 

"Another three credit unions earned at least a third of their original investment back in one year.  In many ways, we offer one of the highest returns of any credit union investment," he said.
Credit union organizations that founded MWBS include:
  • Aberdeen (S.D) FCU;
  • Black Hills FCU, Rapid City, S.D.;
  • Capital CU, Bismarck, N.D.;
  • Credit Union Association of the Dakotas, Bismarck, N.D.;
  • Highmark FCU, Rapid City, S.D.;
  • Mutual First FCU, Omaha, Neb.;
  • Town and Country CU, Minot, N.D.; and
  • Western Cooperative CU, Williston, N.D. 
Among the credit unions that have joined as equity subscribers are:
  • Service First FCU, Sioux Falls, S.D.;
  • First Community CU, Jamestown, N.D.;
  • Dakota Plains FCU, Lemmon, S.D.;
  • Citizens Community CU, Devils Lake, N.D.;
  • Voyage FCU, Sioux Falls, S.D.; and
  • North Star Community CU, Maddock, N.D.
Subscribers receive discounts on our services and also have a priority position for loan participation purchases.

CO-OP supports Visa, First Data EMV agreement

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RANCHO CUCAMONGA, Calif. (3/3/14)--CO-OP Financial Services welcomed a recent agreement for debit EMV security standards between Visa Inc. and First Data STAR Network, a major electronic funds transfer system.
The credit union-owned ATM network operator said Friday that a number of its clients are in the STAR Network, and that it is also seeking to implement similar protective technologies like the one Visa and First Data hope to spread through their agreement.
"Like STAR, CO-OP is among the leading PIN debit networks in the Debit Network Alliance working to provide a structure for the common deployment and implementation of the debit EMV standard," the company said in a press release.
Last week, Visa and First Data announced they would work together to offer issuers, acquirers and merchants a new system based on cards with integrated circuits called EMV chips. The chips generate one-time codes for each transaction, making card-counterfeiting more difficult.
The two companies said in a press release that the agreement "will help to enable the development of regulation-compliant debit EMV solutions using a common Application Identifier (AID)."