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.

Connect with Your CU Demographic

CU Marketing Corner

Connect with Your CU Demographics

It’s no secret that the best way to keep business consistent is to be in touch with your demographics. Today, that means connecting with Millennials by creating a sense of community. They have an estimated $200 billion purchasing power, and as such, they cannot be ignored. Most brands don’t want to ignore them but struggle with ways to connect. Companies find it hard to create meaningful relationships with Millennials. Part of the reason is that they thrive in the space we call social media. And while most businesses use it for marketing, Millennials use it to connect. You need to, as well. Follow the tips below to make your tweets and status updates more relevant and engaging. Here are a few important ways to connect with your CU demographic.

1. Be open and take a stand. 

This is perhaps the first rule when dealing with Millennials. They love transparency and authenticity. It makes your brand more human and strips away some of the inherent skepticism the group is known for. Since most brands use social media for the promotion of products and services, there is a tendency for Millennials to discount them as being dishonest or purely out for profit. When you allow yourself to be a bit more transparent, it speaks to your ability to be vulnerable. That will build trust among youth.

2. Make sure your brand is positive. 

Millennials need to have a very upbeat, exceptional experience with your brand. This means staff and employees need to be friendly (and they probably already are). Yet, on social media make sure your posts carry the same tone. Millennials are known for sharing their online experiences with friends, which translates into more potential members for you, as long as you maintain an upbeat, positive environment.

3. Put the focus on the friend factor. 

People buy, simply because they trust the person selling. Remember, people don’t buy from a brand; they make a purchase from an individual. Therefore, try to find a new influencer who has had a positive experience with credit unions, and mention them in an update, tweet, or Instagram post. It’s a great way to spread authority and connect with a group of people who are known to be skeptical by nature. Employing an authentic influencer strategy will elevate your social media marketing.

4. Use video the right way. 

Over the past few years, video content has been on the rise. The fact that Millennials love it has given headway to popular platforms, like Vine. You have to pay attention, though. While YouTube is known for producing quick 3 to 5 minute videos, Vine clips are typically six-second bites. They are easily digestible, and therefore must be content-rich. Make sure the videos you post employ the same tactics. Make sure they are relevant to Millennials, and you greatly increase the chances of your content getting shared widely.

5. Understand future expectations. 

It’s important to keep in mind that sooner, rather than later, Millennials will be part of the business decision-makers that run our world. It’s important to understand that what is now seen as a commodity, will become an expectation. Brand connections and seamless digital interactions will be expectations, rather than nutrients or fads. This could have a huge potential for business, but the implication here is to keep you on your toes so you don’t get left behind the curve. It’s all about creating a very personal experience for a younger generation. Our membership application package is perfect for beginning their relationship with you. We even have Spanish forms available. Our compliant, fillable forms are another way we help you stay connected with this demographic. They allow you to conduct business at a high rate of speed and speak to your understanding of the need for technology to keep transactions fluid. The moral of the story is: if you want to make an impact on a $200 billion market, you have to know how to speak the language and speak it well.

Chat with us for help increasing your credit union demographics by using Oak Tree forms or our marketing services. We know how to connect with the credit union demographic.

5 Types Found at Credit Union Events

5 Types Found at Credit Union Events

It’s clear that events are a colossal part of the credit union industry. From community credit union outings, local chapter meetings, annual league meetings, national conferences, technology symposiums, and international training events, there always seems to be an event happening in the credit union world. We know there are more than 5 types found at Credit Union Events, but there are some we see at all events.

It’s important to attend events to stay up to date with credit union industry news, regulations, and be aware of challenges other credit unions have faced, and how they have overcome these hurdles. In addition, it is a great opportunity to come together and share ideas with other industry leaders. Events are also a great way to meet with vendors and to learn about new technology that may benefit your credit union by saving time and money, like the credit union forms solutions from Oak Tree Business Systems, Inc. With all the commotion going on, it may be hard to filter out what events are worthwhile and which ones can be skipped. After asking credit union executives, Oak Tree has provided some guidance on how to select an event to attend.

The two biggest factors for deciding what event(s) to attend were the price of the event and the topics covered. Attending any event has a cost associated, so it is important to know ahead of time what budget your credit union has to spend on such events. Not to mention your valuable time out of the office must produce results upon your return to the office. Here is a tip; most credit union events will have scholarships that you might be eligible to procure. So, be sure to read all the event details or ask the event coordinator if they offer any scholarship options. As far as the topics covered, most large events will have an agenda posted prior to the event that will list the overall focus of the meeting, who will be speaking, if sponsors/vendors will be there, and who those sponsors are. This agenda is a great way to gauge if you will truly benefit by attending, as it will let you know if there will be training, hands-on experience with the systems or technology, compliance updates, or networking opportunities.

The date and location of the events are the next factors to keep in mind when determining what event to attend. Travel, hotel, and time spent outside of the office can add extra cost to attending an event. If your budget is small, travel may not be an option. Instead, research your local league or chapter website to see what is happening near you. These websites may also have useful webinar training links available. The length of the event, as well as time of year, is also important to consider. Even a great event may conflict with important deadlines at your credit union. If there is a conflict, there may be other options to still learn about the topics covered, such as downloadable worksheets, the podcast of the event speakers, or even a second date/location of the same event.

Five different types of people at credit union events

1. The Networker: He or she always has a business card handy and ready. The Networker is on the lookout to meet someone new to engage in an insightful conversation about what is going on around him or her in the credit union industry. 
2. The #SocialMedia Guru: The Social Media Guru always has their phone handy, taking pictures for social media. He or she is taking advantage of the conference/event hashtags in their social media updates and is sharing photos with their coworkers back home. If the event has an app, he or she definitely has it downloaded and in full use. @OTBS_CUforms 
3. The Question Asker: He or she is hungry to know more about the topic at hand. They have many questions and are not afraid to ask. The Question Asker came to the event with a purpose, and the purpose is to learn! Nothing is going to stop him or her from inquiring about a question they need to know the answer to.
4. The Quiet One: He or she is quiet, but this does not mean that they are not fully engaged in what is going on. The Quiet One is silently thinking and absorbing all of the information that is presented to him or her at a conference or event. It will be the quiet one who applies the information back at the office that will positively affect your credit union.
5. The Booth Visitor: Whether he or she is collecting the free handouts at the booths or trying to learn about new businesses/technology, this person is sure to stop at all and any vendor booth.

What is your biggest state event? Comment to let us know.

What a CU Needs to Stay Compliant

While credit union compliance may have been under the radar just a decade ago, a recession, global pandemic, and going digital have all contributed to a multitude of new regulations and an emphasis on compliance. So let us look at what a CU needs to stay compliant because you need to keep your credit union compliant.

Utilizing a proactive mindset can prevent costly compliance litigation and fines. We have assembled a checklist to help you assess your CU’s compliance strengths and risks.

Regulations

It’s important to stay diligent. Implementing a plan to stay compliant is necessary to fulfill CU strategies for growth and longevity.

Regulatory agencies such as NCUA, Federal Reserve, Federal Financial Institutions Examination Council (FFIEC), and Consumer Financial Protection Bureau provide updated information on laws and compliance.

1.Study past and current trends.

Use the facts you have and projected trends to create a plan of action.

2.Execute a plan.

Create detailed reports, update budgets, and keep staff trained and informed on any changes.

3.Audit yourself.

As regulations change, so should your products and processes. Continuously think about how you can improve and decrease any weaknesses.

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Good Partners

Networking with other credit unions to talk about compliance is important not only for your branch but CUs as a whole. By finding out how others view compliance issues and how they have resolved those same issues can save you from future costly mistakes. What a CU needs to stay compliant sometimes is a good partner to watch their back.

Plus, if you place importance on forming a network of CU executives, you will have someone to call. Picking up the phone is much easier than taking a deep dive into compliance blogs or manuals that might not even fully answer your specific question.

Once you foster a friendship with several local or regional CUs, consider forming a committee that focuses on compliance. That way when any regulatory changes are introduced, you can talk about them as a committee and forward that information to everyone involved. This collaboration is a hallmark of the CU world, an advantage over most banks that prefer to keep a corporate distance.

For example, Washington State Employees Credit Union (WSECU) organized a consumer protection compliance committee back in 2014 in response to the Dodd-Frank mortgage rules and state examinations. As CUs need to conform to a growing list of regulations, the committee provides oversight and guidance to the CU’s management of compliance.

Tools

The Federal Financial Institutions Examination Council (FFIEC) provides three compliance resources that are worth adding to your toolbox. These free resources are a great addition to your current setup and can fill gaps when your budget is minimal for data compliance. What a CU needs to stay compliant is the proper tools.

FFIEC Information Technology Examination Handbook

The FFIEC IT Exam Handbook is the main guide used to assess compliance by auditors. Although it offers an outline for audits, it does not include everything. An auditor may suggest changes that aren’t included in the handbook.

FFIEC IT Exam Handbook includes information on the following topics:

• • Allocating staff and technology to information technology
• •Organizing an established information security culture within your CU
• •Defining risk identification processes
• • Risk monitoring and reporting
• •Consistent security operations

FFIEC Cybersecurity Assessment Tool (CAT)

Credit unions have access to the Automated Cybersecurity Examination Tool (ACET) which is based on the CAT. The ACET provides easy-to-interpret results that are easy to implement. This is an improvement over a standard PDF.

CIS Controls® (CIS)

For cyber-attack prevention, this free tool is a great addition to credit union cybersecurity programs, whether you build your own or use a third-party solution.

Online Security

Members of credit unions switch from traditional banks to experience an increase in personalized customer service, security, and trust. Online security is a key component of trust as members continue to lean toward digital products and processes.

As part of maintaining compliance, security monitoring is key in protecting your members’ information. By consistently following these three steps you can prevent future cyber-attacks.

1. Find Your weaknesses

Consistently check for weaknesses in your CU’s security monitoring. It is impossible to efficiently monitor your credit union logs manually. Using a security operations center (SOC) can provide cybersecurity 24/7.

2. Create a Plan

Once you start using a SOC, single out your vulnerabilities to see which ones need attention.

3. Fix Vulnerabilities

IT teams can benefit from a patch management system to fix vulnerabilities and keep them from creating a larger issue. This system saves man-hours by removing the task of manually determining which issues need a patch.

The Cloud

Cloud security is used by 75% of credit unions. The protocol of cloud security compared with traditional methods is virtually the same.

Involve Your Members

Keeping your members educated about their overall cybersecurity can help decrease cyber-attacks and even fraud. Over 80% of hacking-related breaches are due to weak or stolen passwords.

Simply adding password requirements to member accounts like character length, a mixture of both lowercase and uppercase letters, numbers, and special characters will help protect sensitive member information. You can also add multi-factor authentication as an additional layer of online protection.

ADA

Website and mobile apps should be secure, and also follow the Americans with Disabilities Act (ADA) guidelines.

Choose a web developer or ADA agency to audit your site to ensure that you are compliant on all devices including desktops, tablets, and mobile phones. They can also check to see if your site is accessible through text readers and audio scanners.

Post-Coronavirus World

As credit unions have catered to their members during coronavirus in the form of pandemic-specific products and processes, this new way of doing business has opened up a whole new set of regulatory changes and compliance issues.

New trends, such as digital notary signings, have changed the way credit unions complete the loan process. CUs also had to put a priority on the government-issued SBA Paycheck Protection Program to fully serve its members struggling to fund their small businesses during the pandemic. With the increase in remote member transactions, it’s important to protect members against fraud not only during the coronavirus but post COVID-19 as well.

The silver lining from coronavirus is the opportunity to test remote work among credit union employees and digital products and services for CU members. As credit unions set future risks, goals, and marketing strategies, compliance is at the forefront of success. All of these changes required swift compliance action from training, to sensitive advertising content, as well as reforming loan processes.

As the global pandemic continues to shape member preferences toward digital, it’s a great time for CUs to re-think strategies regarding member engagement and how that affects their brick and mortar world.

Avoid excess anxiety about compliance by networking with other CUs, taking advantage of free resources, and investing in online tools that will keep your CU compliant and your members’ information secure.

On a Mission to Make a Difference

Humanitarian Highlight 3.4.2021

Welcome to this week’s #HumanitarianHighlight where you’ll get a first-hand look at #creditunions from all over making it their mission to make a difference in their communities. 🧡
Here at Oak Tree, we are so grateful to be apart of this #CUfamily, and we will continue doing our part to give back, and showcase others who embody what it means to truly make a #CUdifference!

American First Credit Union

The charitable arm of American First CU is giving away 10 scholarships, each worth $1,000. The credit union is looking for candidates who embody the people-helping-people motto, and who play an active role in their local communities. To be eligible, members must be graduating high school seniors or undergrad students currently enrolled in a two-year, four-year, or technical college, and who most importantly, have a passion for serving others.

Connexus Credit Union

Connexus CU has generously pledged $1,000,000 to Habitat for Humanity Saskatchewan, which will help support the building of 80 homes across the province and will help families achieve their basic human needs. Connexus CU is also taking the initiative and working with Habitat for Humanity to create a provincial youth work experience program. This program will give 220 students each year the chance to gain trade skills, and Connexus CU will provide them with financial literary sessions.

Mission Fed Credit Union

During a month-long fundraiser, Mission Fed CU raised a grand total of $215,000. These proceeds will be used to benefit three of the credit union’s community partners: The Jacobs & Cushman San Diego Food Bank, San Diego Rescue Mission, and The Salvation Army of San Diego County.

TLC Community Credit Union

TLC Community CU gifted $25,000 to the Lenawee Community Foundation and Kiwanis Regional Trail Authority. This donation will go toward assisting in the Kiwanis Trail connection and expansion between Adrian and Tecumseh. The extension of the Kiwanis Trail will bring the trail into the city of Tecumseh and is planned for later this summer. 

Together Credit Union

Together Foundation has donated essential technology and educational supplies to two St. Louis metro area schools. This donation will aid teachers and students as they try to navigate the challenges of virtual learning during the pandemic. Ensuring students continue on a bright path and easing the burden placed on teachers to quickly adapt is the main goal for this credit union.

Tower Federal Credit Union

Tower FCU just announced their new philanthropic endeavor, Pennies for Change. Over the course of the year 2021, Tower will donate up to $250,000 to the TowerCares Foundation through the Pennies for Change program. The newly implemented Pennies for Change program will work by members simply swiping their debit or credit card, in-store and online. For every use, Tower will donate one cent to the foundation, and they fully expect to hit their goal.

Truliant Federal Credit Union

Truliant FCU held its annual Financial Education Grants for public schools, and this year 11 of the 38 applicants in Truliant’s member-owned communities were selected. They are receiving grants for individual programs aimed at improving financial literacy. The credit union is gifting more than $40,000 to this year’s winners. The fund is intended to strengthen financial literacy in grades k-6 by gifting funds in financial-education grants to public school teachers, so they can implement financial education into their curriculum.

Thank you for reading this Humanitarian Highlight! Please check out last week’s, and please do not hesitate to contact us with any questions about our products & services through our email or by phone (800) 537-9598.

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.

Navigating Current Lending Trends

Navigating Current Lending Trends for Growth and Compliance

Following current lending, trends can boost loan applications and approvals. It can also spark new partnerships and provide a competitive edge in a volatile market. Let’s look at navigating current lending trends for growth and compliance; and how they can help your credit union grow.

How do I encourage membership growth?

CUs generally have lower loan rates, higher rates on savings and investment accounts, and fewer fees. While credit unions focus on securing memberships from younger generations, it’s important not to discount lending to small and mid-size businesses.

Due to economic uncertainty, small business owners are forced to seek online lending options. Online lenders are dominating the market with higher percentage approvals and quick funding.

Small businesses are worth the acquisition cost since most will need additional products like checking and savings accounts. A positive CU experience could solidify a long-term client both for business and personal financial needs.

How do I increase equipment loan approvals?

Once you have established relationships with small and mid-size businesses, they will likely need additional loans such as equipment financing. While it’s easy to put a business owner into a box by only recognizing his credit score or actuarial models, that box doesn’t meet the needs of today’s business owner.

Does the owner have collateral? Cash flow? Do they have a good reputation with your CU? All of these factors should also influence loan approval.

By underwriting each equipment loan, you can personalize the experience and collect pertinent data that can help upsell additional products and services.

Take the time to get to know local industries that are seeking loans. Do you understand their equipment needs? Are they able to source new or used equipment?

Establishing genuine care and concern for each business member’s needs can generate referrals and build trust among industries. Running a business in any industry is difficult and understanding the needs and unique financial mistakes can help your CU provide solutions to keep those businesses running without a hitch.

How do I go digital without losing members?

By 2025, it is estimated that over half of tasks currently held by various credit union personnel such as loan officers, tellers, and financial advisors could be automated according to Accenture. Although going digital could save financial institutions billions of dollars, it also affects the ability to provide a human experience, a touchpoint that credit unions rely on.

However, going digital doesn’t have to mean slashing the workforce or giving your members the cold shoulder. For example, OceanFirst Financial in New Jersey retrained its employees to assist digital banking roles.

Even though OceanFirst closed over 1/3 of its branches, through its employee retention efforts and forward-thinking mindset, it was able to keep over 90% of members who banked at the closed branches.

By adopting digital processes, OceanFirst also witnessed an 81% increase in mobile deposits (2019). Investing in retraining their employees not only educates their staff on digital processes but provides growth and sustainability for their coverage area.

Why should I partner with fintech?

As the need for a personalized digital banking experience paralyzes credit unions, fintech can provide the perfect partnership.

Your CU doesn’t have to become fluent in online coding or start from square one. By partnering with fintech companies, credit unions can expand their network of businesses, and simplify the loan process to engage more members at a faster pace.

This strategy is particularly important for CUs that lack manpower and budget in the areas of risk, underwriting, and compliance.

Fintech can also help CUs gather data analysis regarding their potential and current membership. The data measures credit risk allowing the credit union to understand the borrower’s financial behavior before a transaction has commenced.

By using smart credit risk technology, CUs can feel comfortable approving the loan, even if traditionally the borrower may have questionable credit on paper. This is the main avenue fintech uses to speed up loan approvals.

It’s important to choose a fintech early in the game. As fintech gets more established the rates start to increase, which means the cost of partnership can as well. Coronavirus has forced scenarios we have never conceived before. Only being able to communicate via a virtual world is right up fintech’s alley so take advantage of their automation techniques in personal and small business lending.

What’s next for the U.S. economy?

Since 2000, credit union lending as increased in both first mortgage and auto. Totaling $81.6 billion (26.0% of all credit union loans in Q2 2000) and $440 billion in Q2 2019 (41.1%), first mortgages have seen an increase of over 15%. Auto loans have increased too from $123.6 billion in 2000 to $374.4 billion in 2019.

However, 2020 has ushered in a global pandemic, social unrest, and an economic downturn. With all of these factors, it is unlikely that the nation will be as strong economically as it was between 2015-2019. Here are 3 factors that could limit economic growth in the next couple of years.

1. Political Uncertainty

President Trump frequently tweets and according to JP Morgan, those words go way beyond social media banter. JP Morgan nicknamed the tweets the ‘Volfefe Index’ after a confusing 2017 “covfefe” tweet. These specific tweets are showing a significant impact on Treasury yields.

Depending on the content, tweets affect volatility in the market which affects the pricing of options and securities.  As the November election looms, uncertainty in the market is considered commonplace.

2. Low Inflation Rate

A low inflation rate is meant to keep the recovery going. However, when inflation rates are already low, cutting them can make a weak economy weaker.

The probability of an additional 25-basis-point rate cut averaged approximately 87% for contracts expiring between the end of 2019 and September 2020 as found by the Federal Reserve Bank of Atlanta’s market tracker.

3. Future Economic Trends

As a higher ratio of Americans is retiring, the U.S. has seen a slowdown in productivity. Less productivity means less economic growth. This decline of economic growth along with a decline in consumer spending could be problematic for a quick economic recovery.

Even with lending wrapped up in the chaos of economic uncertainty, now is the time to invest in technology and comply with industry regulations to stay competitive. Listening to the needs of your members can help your CU weather economic uncertainties. Here at Oak Tree we follow the lending trends in the credit union industry and are here to help you adapt. What’s your feedback on navigating current lending trends for growth and compliance at your credit union?