Trusted News for Credit Union Leaders
Credit Union Times
JULY 8, 2015 | VOL. 26 | NO. 24 | CUTIMES.COM
1990 2015
CREDIT UNION TIMES
Must Reads
MOBILE BANKING
MACU Leverages Biometrics
The $4.5 billion, West Jordan,
Utah-based Mountain America
Credit Union has a reputation
for driving innovation. And that
reputation is well-deserved –
the credit union’s latest mobile
product launches allow members to login using biometrics,
and apply for and receive funding on a number of loans.
For the biometrics login feature, members can choose to use
eye print authentication, fingerprint authentication, or both. Or,
they can opt out entirely.
“We do not require our mem-
bers to use one or the other or
both,” Shelby Peterson, manager
of product strategy for Moun-
tain America, said. “We under-
stand that our members might
be weary of one technology over
the other, so we really believe that
we should give them the ability to
choose.”
The credit union developed
the technology with the Berke-
ley, Calif.-based Access Softek
for the fingerprint login portion
and the Kansas City, Mo.-based
EyeVerify for the EyePrint ID
technology element. The new
authentication options are a re-
sponse to growing data breach
and identity theft threats, Peter-
son said.
“Security was a huge showstopper for growth,” Peterson recalled.
“MACU heard its members and
their concern for security, which
is why we introduced biometrics
and made it available for however
they want to use it.” Y15
Strategic
Communication
Don’t underesti-
mate the power of
teamwork. Y12
Gay Marriage
and CUs
The SCOTUS
ruling could help
retain talent. Y6
FOCUSREPORT:
GEN X AND GEN Y
Gen X members are
next in line for the
C-suite at credit
unions – and they’re
gaining a reputation
as forces to be
reckoned with.
Meanwhile,
cooperatives seek
new ways to capture
and retain Gen Y,
both at the member
and employee level.
Learn more in this
Focus Report. Y8
FRAUD
Experts Share Bond Coverage Tips
TINA OREM
tinaorem@gmail.com
he plethora of recent
headlines about em-ployee-related fraud
and embezzlement at
credit unions is highlighting the
importance of bonding, and experts in the field have a few pieces
of advice for making sure there are
no surprises if it becomes necessary to file a claim.
According to data from the Fi-
nancial Crimes Enforcement
Network, the number of reported
suspicious incidents involving
employees at NCUA-regulated
credit unions rose by more than
10%, from 1,577 in 2013 to 1,742
in 2014. From January to May of
2015, 834 suspicious incidents
were reported, putting those in-
stitutions on pace to hit 2,000 by
year end — a 15% increase from
last year.
Bonding, which the NCUA requires of both federal and state-chartered credit unions, typically
addresses fraud and dishonesty
by employees, officers, committee members and other trusted
insiders.
Understanding how that coverage works can be tricky.
Here are a few things experts
say credit unions should
The Rundown
Y FCUs are on pace to file 2,000 SARs this
year, a 15% increase over 2014.
Y Minimum bond coverage is usually sufficient.
Y Bondability verification services are key
to avoiding high-risk employees.
Y17
Disparate
Impact
Endures
DAVID MORRISON
dmorrison@cutimes.com
ttorneys and compliance specialists
agreed that while the
Using disparate impact, plaintiffs in discrimination cases can
use statistical data to prove that a
lender’s policy negatively affects
a protected class of consumers,
even if the lender did not intend
to discriminate.
The court’s opinion came in
the case Texas Department of
Housing v. Inclusive Communities Project and drew largely predictable responses. Individuals
and organizations representing
people who have faced housing
discrimination favored the ruling. Those representing mortgage
finance lenders or housing companies criticized it.
Marvin Umholtz, founder of the
Olympia, Wash.-based Umholtz
Strategic Planning & Consulting,
took a dim view of the ruling.
“To the extent that the federal
government regulatory agencies,
and the Justice Department, ramp
up their fair lending enforcement
activities, and in doing so le-
FAIR LENDING
Y16