The financial industry is always innovating alongside technology advancements to improve efficiency and enhance experiences for credit unions and their members.
In recent years, we’ve seen the trend of faster payments, such as Zelle and Same Day ACH, become pervasive. Even in the last year, when the need for easy-to-use digital channels became a priority, community banks and credit unions sought to provide members with as many benefits as possible. According to a study by Aite Group, 82% of community banks and credit unions would consider adding an additional payment rail to improve customer experience.
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However, this rapid shift to faster payments has put pressure on teams worldwide, and small credit unions are finding that they’re stretched too thin to properly accommodate the needs of their members. Even with the best analysts working through alerts all day, as more solutions are implemented and new members join, small credit unions could be overwhelmed.
It’s time to embrace the digital age at all levels of your program with artificial intelligence (AI).
In the case of analysts, AI can identify which high-risk alerts to focus on, ensuring that major fraudulent activity is caught in real time.
Through AI-based analytics, credit unions can see all the risk factors that affect a case. Now that AI can discover patterns and risk levels at record speeds, what once took weeks to conclude now only takes a matter of days or even hours.
Evolving technology means evolving fraud
Financial criminals are cunning and adaptable. As the global community continues to advance and embrace faster payments, the risk of fraudsters capitalizing on vulnerabilities has never been higher. Even now, fraudsters are employing their own AI to target high-risk members in ways we’re not accustomed to.
If you’re relying on an old, outdated rules-based system, fraudsters will easily exploit your systems and members. Credit unions have a duty to protect members and, by implementing AI, that duty becomes easier to realize.
By using AI, credit unions of any size can optimize their processes, competitively operate, and protect members from the risks of evolving fraud.
Credit Union Magazine’s Spring 2022 edition highlights inclusive lending, succession planning, fair lending and artificial intelligence, and the use of environmental, social, and governance (ESG) as a competitive differentiator.
