Floyd Rummel III, CEO, Northern Hills Federal Credit Union
Reducing call center fraud
TruWest Credit Union in Scottsdale, Ariz., began using AI in January 2021 to offer biometric authentication for members who contact the call center.
Chris Kearney, chief information officer for the $1.4 billion asset credit union, says call center volume was rising even before the pandemic pushed it higher, making it important to handle calls efficiently.
Traditional authentication is based on a time-consuming process of gathering answers to a list of personal questions such as “mother’s maiden name.” Fraudsters use dark web data to answer those questions and gain access to account information.
“We were actively looking for a solution to add to call center agents’ toolbox to streamline interactions and protect members’ identities and funds,” Kearney says.
TruWest rejected existing voice recognition solutions as too expensive and cumbersome until it found a service-based AI tool from Illuma Labs.
“Our voice authentication solution uses AI to analyze member calls in real time, matching the results against an enrolled member’s voice print,” Kearney says.
The 15-second process replaces a typical 90-second question-and-answer authentication session.
Machine learning is built into the solution so the voice signature gets stronger every time a participating member calls the credit union.
TruWest launched voice recognition with a three-step process:
Define risk tolerance. A cross-functional team drawn from the call center, information technology, risk management, employee development, and leadership weighed AI’s ability to reduce call center risk. A call center team tested the system with a pilot in May 2020 and a soft launch in November 2020.
Offer privacy. Call center staff developed a narrative to explain the benefits of voice recognition and offer enrollment to members. Almost 10,000 members—nearly 11%—use voice recognition as of June 2021.
Update policies and procedures. The credit union updated its privacy policy to address biometrics before voice recognition began, for example, and confirm members’ ability to opt out.
TruWest is also using voice recognition for outbound collection calls and will soon apply it to authenticate online chatbot users. The online chatbot relies on AI to automate the exchange of information with members online.
4 ways to explore AI
The experts cited in this article offer four ways to explore artificial intelligence (AI):
Adopt a learning mindset. Start with proof of concept to see if the AI-based tool could work, then run a pilot and collect employee feedback to improve deployment to members.
Learn from failure. Aim to “fail fast” by capturing lessons learned, gaining expertise, and improving internal capabilities.
Develop digital leadership. Demand that executives stay up to date on digital issues while giving data analytics professionals a seat at the leadership table.
Make managing fintechs a core competency. Fintechs are eager to satisfy due diligence and prove their worth, but they may need coaching to work well with credit unions. Expect fintechs to be resilient partners with a high tolerance for setbacks
The Winter 2023 issue of Credit Union Magazine explores award-winning marketing, board training on a budget, developments in instant payments, service to small businesses, and NCUA’s final rule on member expulsion.
