6 Tips for a New Credit Union Data Processor

How to Shop for a New Credit Union Data Processor

Shopping for a new data processor can be overwhelming… so many options, and so many things to consider. How do you know if you are making the right choice? Here are 6 tips for a new credit union data processor to consider while you shop. Cover these, and the rest is just commentary.

Functionality. 

Does the new system offer real-time processing? How easy is it to use? Both of these questions speak to functionality. Many data processing companies produce software with amazing bells and whistles. Just make sure it still fits your needs with regard to access, usability, storage, and backup.

Reliability and Security. 

With cloud-based systems, data processing software reliability is at an all-time high, but security breaches are also becoming more common. If your proposed provider cannot offer a guarantee with regard to reliability, keep shopping. There are plenty of other providers.

Integration. 

How easily will your new system integrate with your current lending software? Integration is a must for a data processing switch to be solvent. This should be priority number one. If it does not integrate, disregard all of the other nice features and continue your search.

Cost. 

This one can be tricky. Notice we mentioned cost, and not price. You may find a product that is priced cheaper but could actually cost you more in the long run. If certain capabilities (like forms integration) are not part of the package, then you could potentially spend more on labor down the road. Ask questions, and always ask for a discount… especially if you are a new customer!

Time Frame and Training. 

How long will it take the data processor to make the switch and train your staff? This is one of the rare instances in business where time literally is money. You may not be able to afford to have your system down for days in order to make the switch. Make sure you clarify beforehand, then communicate with staff and customers to keep frustration at bay.

Longevity. 

Will this system need to be upgraded every five years? Will it be obsolete in ten? Ask about longevity to prevent unnecessary spending in the future. You want to make sure your data processor can grow with you.

Regardless of what core you currently are using, or decide to upgrade to, you can be sure that Oak Tree will be there for your document needs. Our Data Linking services will ensure that everything works.

Credit Union ComSec

Confidentiality, Communications Security and Other Issues That Put Sensitive Info at Risk

Credit Union Communication Security

Communications Security, also known as ComSec is the protocols put in place to secure the communications and data of an organization. Credit Unions handle tons of personal data, millions to billions of assets, and must comply with an ever-evolving and changing regulatory landscape — so credit union ComSec is a concern for all credit unions.

The digital age grows stronger every day, and with innovation comes breaches and security threats testing the boundaries and strength of each new step forward. With the growth in technology and widespread information sharing, financial institutions need to keep up with the movement and continuously be aware of the current security state. Gone are the days when safes and locks kept the gold in one place, and physical evidence was needed to prove identity. 

As a primary institution, members rely on credit unions to protect their valuable assets from the growing dangers of identity theft, breaches, fraud, etc. … This protection begins in-branch with tightening operations to a lock and key level, starting with security protocols and placing restrictions on documents and member information so that it is not treated like an old newspaper. We can’t forget about moments like Wendy’s data breach.

We do not realize how accessible internal and personal information is to inside and outside threats. A simple document may contain valuable information like birth dates, social security numbers, maiden names, etc. – and the disposal and treatment of this common document are treated as such. Placing disposal protocol on information-sensitive documents protects your FI and your members.

In today’s society, a released phone number can create months of spam calls and even fraudulent phishing scams to individuals. Even basic member information can be used against them in the wrong hands, and it is the responsibility of your credit union to create a safe storage space for their assets, both monetary and identity.

Credit Union Employee ComSec

Building on a more secure physical workspace starts at the employee realm. Have organized workspaces, and keep documents in the right place for certain needs. A messy desk can turn into a quick toss of member-sensitive documents for the purpose of clearing space. Organizational systems create a sense of order and security for employees and members.

Creating a hierarchy of accessibility can be a spearheaded plan for identity protection. Not all of your credit union employees need access to member information and documents containing it. Continuing the organization into tasks – the credit union employees that complete tasks using certain documentation are the only people who need access to those documents. This creates a lowered risk of lost documents and the spread of information.

Beyond the physical branch, accessibility restriction for digital systems is of utmost importance. So many attacks are digital, and it is important to keep system data fully secured and protected. Always keep devices and applications password protected with unique and varied passwords — Check in with core processor vendors and data linking companies to ensure security integrity.

Above all, the best way to protect your members is by helping them to protect themselves. Distribute fraud security tips with new accounts as well as reminder emails to update your members about current scams and threats. This effort not only protects your members but also builds trust and loyalty between members and FI.

Oak Tree offers compliant solutions to data linking for complaint lending and works with every data processor for smooth and simple integration. We also offer marketing services to help your credit union reach your members and share fraud security tips, tricks, and event updates. Contact us today to learn more.

Migrating to Chip Cards for Security

Keeping data secure is always a top priority for Oak Tree. It`s one of the reasons we offer data integration with our forms packets. Data integration makes credit union business more efficient and safer for the members and institution. Yet the fight for data security is ongoing. New mandates and regulations have chip card processing vendors on their toes. Most industries are required to be in compliance by the end of the year or face fines. It is time for your credit union to look at migrating to chip cards for security if it has not already done so.

The move is an effort to protect client data. Chip cards work by linking customer data to a small EMV (Europay, MasterCard, and Visa) chip on the face of the card. It offers more security than traditional magnetic stripe cards. Here are three security feature highlights.

3 Reasons Chip Cards Are Safer Than Their Magnetic Stripe Counterparts

• Fraud. Chip cards prevent people from making purchases by physically swiping a fraudulent credit card. It works. Many places have seen these types of purchases all but eliminated.
• Cloning. Chip cards are extremely difficult to clone. Magnetic cards are much easier. The reason is, magnetic cards make use of static data. A $20 skimmer is all a thief needs to create a clone. Chip card data is dynamic. It always changes. In order for a data hack to occur, a thief would need to access the chip`s physical circuitry.
• Better Encryption. Magnetic stripe cards broadcast data through the reader as-is. Chip cards encrypt the language as soon as it “dips” into the reader. The card communicates with the merchant through secure encryption the entire time.

This is why migrating to chip cards is one of the best long-term moves for member security. Chances are, chip cards will undergo a few rounds of revision over the next few years to streamline security and data linking. Our forms will remain constant, though. Always compliant and accessible when you need them, they are the perfect companion to ensure the entire chip card application process is secure.

When it comes to Credit Union Consumer Lending Documents and Data Linking Services, Oak Tree is here for you.

Credit Union Information Governance

Is Information Governance Important to Credit Unions?

What do you know of credit union information governance? Nothing is more important to a credit union than compliance, and one of the biggest components to this is information governance. This term may not be so familiar to those outside of the financial sectors or corporate cultures, but it is something that has become more important with each passing day. Every company, especially credit unions, must contend with a myriad of ever-changing laws, compliance issues, competition, economic uncertainty, and the malicious hackers and criminals that are always a danger to their assets, which contributes to growing concern. Information governance is nothing more than the protocols put in place for any organization to keep its information secure, yet usable. It is being meticulous and disciplined in the collection, management, and output of any information or data in a corporation.

As more credit unions expand their use of fintech, we see a need for them to also bolster their practice of information governance. This has led to the growing need to be more careful with the bulk of data that has been collected. Especially as more states and even the federal government have begun to craft new regulations and controls on how such data can be used, how it must be curated or stored, and of course how to handle the liability issues if an organization is breached. Then there are also the resources used to collect, store, and safeguard this data as a cost to the corporation in comparison to the lifecycle of its usefulness or reliability.

Credit Union Liability Issues

Besides liability issues or the need to stay compliant, we have also seen that when credit unions craft and implement more stringent and careful protocols for their information governance it comes back to that very important shareholder – the member. Protecting the information on your members is also about protecting them from fraud and other abuse. It gives them confidence in your institution when they know that their information can be trusted with your credit union. This is just one more way to build that goodwill and reputation that helps every company survive through the most severe of situations.

There are many instances where it may seem that the data you have is at risk, and this can be very true when dealing with vendors. Oak Tree has been a trusted vendor and we completely understand and respect the need for such controls on sensitive data. Staying compliant doesn’t just mean being aware of the law, it is meant to protect all of us and allow us to feel accommodated.

Oak Tree Business Systems has been in the credit union industry for over 37 years, so we can say that we are confident, and encourage all credit unions to use our forms. We comply with both state and federal standards, meet the expectations of each credit union’s members and staff, work on each credit union’s data processing system (and within their policies), and have an effective compliant forms system.

Credit Unions Navigating Mobile Banking

Credit Unions Navigating Mobile Banking

In a commentary article posted on Credit Union Times our CEO, Richard Gallagher discusses how quickly mobile banking is growing and the effects this growth has on credit unions. Credit Unions navigating mobile banking is somewhat of a new challenge, but there are plenty of solutions to keep up with the growth. This new form of payment processing not going away and credit unions navigating mobile banking will only be beneficial.

Consumers demand banking experiences that can keep pace with their lifestyles. That’s why there are so many different payment gateways. Consider the following list of giants. Entities like Apple Pay, Google Wallet, Facebook Messenger, PayPal, and Venmo all exist to enhance peer-to-peer payment processing. They try to make the payment experience easy and seamless. The fewer steps required for a consumer to perform in order to send money, the better. The less that is required of them to interface with the application, the better. It has become the new marketplace standard.

These are points to consider when fine-tuning your mobile banking application. Your members want three things … speed, ease, and security. It’s why bill payer services were so popular for a while. And while you might not think things have changed much, they have. New payment apps have substantially decreased the fees associated with credit union bill pay services. In many instances, it costs nothing for a member to make a payment. Plus, they are less bulky and easier to use. It’s a true win-win for them.

Richard Gallagher

To read more about how your credit union can navigate mobile banking and the solutions, go check out the CU Times article and then check out our membership documents for your credit union.

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Mobile Banking Optimal for Lending Growth

Mobile Banking is Optimal for Lending Growth

In a commentary article posted on Credit Union Times our CEO, Richard Gallagher, discusses how mobile banking optimal for lending growth at credit unions is so important. A crucial topic as credit unions seeks to connect with Millenials.

Mobile banking allows credit unions to compete with larger financial institutions. It gives them a competitive edge and greater flexibility. It is also great for lending growth. A study by the Federal Reserve reported that “67% of millennials now use mobile banking, compared to 18% of consumers age 60 or over. This usage gap is projected to widen even more, as 85 million millennials, prone to using their mobile devices for banking, are coming of age.” This translates directly into an increase in lending growth. Here’s why.

Lending Growth and Mobile Banking

One of the greatest assets of mobile banking is 24/7 access. Members can check loan balances at any time, just as they would their checking or savings accounts. They may also have access to other crucial pieces of information, such as principal balance and next payment due date. All of this serves to increase lending growth, as consumers are constantly looking for efficient ways to manage their financial lives.

Richard Gallagher

To read more about how your credit union can increase its lending growth opportunities go check out the CU Times article and then check out our lending documents for your credit union.

_{(note: this is an older blog entry and has been edited since originally posted.)}