Trusted News for Credit Union Leaders
Credit Union Times
JANUARY 9, 2019 | VOL. 30 | NO. 1 | CUTIMES.COM
Hedging
Opportunities
Is it time for CUs to
explore them? Y9
Zeroing In on
Reputation
Enhance, protect
and defend your
CU’s image. Y8
FOCUSREPORT:
A LOOK AHEAD
More natural disasters are bound to come in 2019,
threatening credit unions’ members, facilities and
assets. In this Focus Report, learn best disaster
preparation practices from CEOs who lived through
some of the country’s worst natural catastrophes. Y6 TINA OREM
torem@cutimes.com
PAYMENTS
New Trends,
Threats
to Hit CU
ATMs
TM security was a hot
topic in 2018, and for
good reason – unrelenting theft threats,
rapidly-changing technology and
shifting member demands were
just a few of the major trends that
influenced the sector over the last
12 months. Here are five of the
year’s biggest stories in ATM security, plus a few predictions from
the experts about what 2019 may
have in store.
1. EMV-Ready – Or Not
In its 2018 EMV Migration Survey,
the ATM Industry Association reported that 91% of U.S. ATMs were
EMV-capable and 86% actively
accepted chip transactions, which
was a significant spike from an estimated 19% at the beginning of
2016 and 58% at the beginning of
2017.
But there was an open secret in
the industry in 2018: Many credit
unions still hadn’t finished – or
perhaps not even started – issuing
EMV cards.
2. Fee Fury
More consumers than ever said
they would do just about anything
to dodge ATM fees, which may
have put more pressure on
reaches, account take-
overs, card fraud, mal-
ware, phishing, ransom-
ware, DNS attacks …
which cybersecurity development
will have the greatest effect on
credit unions in the coming year?
Some credit union industry professionals helped draw a picture of
what to expect in 2019.
“The continued organization
and consolidation of cybercrimi-
nals will result in greater efficiency
in their effort to attack existing
vulnerabilities, while accelerating
their ability to exploit new vulner-
abilities,” Nayan Pa-
tel, vice president,
strategic alliances
at Fiserv, said. This,
along with the in-
creasing lack of cy-
bersecurity talent
available to most
credit unions, will
necessitate the adoption of secu-
rity orchestration platforms as well
as the enlistment of trusted part-
ners to augment existing tools and
staff in the form of managed secu-
rity service providers.
Patel said the concept known
as SOAR (security orchestration,
automation and response), will
tremendously influence credit
unions and other institutions going
forward. “SOAR platforms enable
organizations to collect security-related data from the many
2019 Brings New Security Challenges
ROY URRICO
rurrico@cutimes.com
CYBERCRIME
Must Reads
INVESTMENTS
‘Pensionize’ 401(k)s and IRAs
In a world of defined contributions, American workers have
three challenges – inadequate
savings, leakage (or loans/early
withdrawals) tied to their retirement accounts and the need for
retirement income. Plus, just half
of all DC plans offer a way for
investors to transform balances
into periodic retirement income,
with only one in five offering
guaranteed lifetime payouts.
This situation prompted Steve
Vernon of the Stanford Center on Longevity, Wade Pfau of
The American College of Financial Services and researcher Joe
Tomlinson to explore and devise solutions to “pensionize”
retirement plans. Their work,
first published last year and then
updated this year, finds that only
one-third of workers contact financial advisors, and most lack
the necessary skills to convert
savings into retirement income
and typically have short planning horizons.
But research from the Stanford Center on Longevity (SCL)
and Society of Actuaries (SOA)
has found a “straightforward retirement strategy,” according to
the three authors. “Choosing a
specific solution that will help
workers generate retirement income requires them to make
informed tradeoffs between potentially competing goals,” they
explained, such as “maximizing
lifetime income; providing access to savings (liquidity); planning for bequests;
HUMAN RESOURCES
Benefits Turn High-Tech
Technology and data frequently
go hand in hand to power th
latest innovations in the benefits
industry. New solutions as well
as evolving applications of xist
ing technology and data analytics continue to emerge at a rapid
pace, making it critical that br -
kers and benefits specialists stay
on top of the latest trends in this
space in order to help their clients make nformed decisions
about how to implement programs that will be most effective
for their workforce.
Read on to learn more about
the top trends currently impacting health and benefits:
1. Personalization
While not necessarily new, this
is one trend that continues to
evolve and demonstrate its
value. Utilizing data, including claims, user behavior and
more, enables programs to
identify gaps in care and cre
ate targeted outreach and communications to more effectively
connect with employees. These
communications can encourage employees to address medi
cation adherence issues, prescription savings opportunities
and recommendations to participate in programs or utilize
tools that might be beneficial,
among other personalized mes
sages to take positive behavioral
steps toward better health and
well-being.
A 2016 Health Advocate
study found that 40% of Y16
Y17 Patel Y18