BizTech Magazine - Technology Solutions That Drive Business https://biztechmagazine.com/rss.xml en How Credit Unions Can Compete with Fintechs https://biztechmagazine.com/article/2019/09/how-credit-unions-can-compete-fintechs <span>How Credit Unions Can Compete with Fintechs</span> <span><span lang="" about="/dashboard/bobkeaveneyu64t" typeof="schema:Person" property="schema:name" datatype="">Bob.Keaveney_u64t</span></span> <span>Mon, 09/16/2019 - 15:04</span> <div><p>Within the financial services industry’s fierce competitive landscape, credit unions have long played the part of the scrappy, nonprofit upstarts, leveraging their personal relationships with customers to compete with deeper-pocketed banks.</p> <p>But now, <strong>credit unions and banks alike face an existential threat from fintechs</strong>, a whole new kind of online-only rival that offer customers a range of innovative products, from cheap mortgages to investment portfolios.</p> <p>Whether they are able to survive this new threat depends mostly on how effective they are in <strong>rethinking their relationships with customers</strong>, argued Lauralee Hites of management consulting firm Stratavize. She said that credit unions may not have the reputation for member service that they think they do.</p> <p>“It’s easy to say we’re leading in service, but are we really doing it?” said Hites, speaking at the annual meeting of the <a href="https://www.cunacouncils.org/events-calendar/14529/conference-details/" target="_blank">Credit Union National Association (CUNA) Technology Council</a><strong> </strong>in Chicago. “Are we measuring it? What I hear is, ‘We win at service.’ But that’s not what I see. It’s not what I see with mystery shoppers, it’s not what I see in surveys, it’s not what I see in the data.”</p> <p><a data-entity-type="" data-entity-uuid="" href="https://www.cdw.com/content/cdw/en/orchestration/hybrid-cloud-infrastructure-report.html" target="_blank"><img alt="IT%20Infrastructure_IR_1%20(2)_0.jpg" data-entity-type="" data-entity-uuid="" src="https://fedtechmagazine.com/sites/fedtechmagazine.com/files/IT%20Infrastructure_IR_1%20(2)_0.jpg" /></a></p> <h2>Competition from Fintechs Has Surprised Credit Unions and Banks</h2> <p>Credit unions and banks have been caught off guard by the speed at which fintechs have eaten into their businesses. Take mortgage lending, for example. “As recently as 2010, three banks (Wells Fargo, Bank of America and Chase) originated 56% of all mortgages,” <a href="https://www.magnifymoney.com/blog/mortgage/u-s-mortgage-market-statistics-2018/" target="_blank">notes</a> MagnifyMoney. “But in 2017, Wells Fargo, Bank of America, Chase and all banks put together originated just 40% of all loans.”</p> <p>Today, Quicken, which has no branches and offers no checking accounts or other banking services, is the nation’s second-leading mortgage originator, trailing only Wells Fargo. Hites, who once worked for Well Fargo, said <strong>the big bank didn’t take fintechs like Quicken seriously at first</strong>.</p> <p>“They thought, ‘No one’s going do that. We’re the giants in the mortgage industry,’” Hites said. “Now the talk at the table is, ‘What are we not doing that Quicken is doing? It happens very quickly.’”</p> <p><strong>Credit unions are unlikely to build the next killer financial app.</strong> But by taking note of some of the elements of an effective fintech app, they can do a better job of building digital experiences their own members will value.</p> <h2>Fintechs Connect Emotionally with Customers</h2> <p><strong>Fintech applications are built to connect customers emotionally</strong> with the things they want to do. Credit union apps and websites tend to be more utilitarian, Hites said.</p> <p>One fintech application, for example, offers users the chance to save money in funds for special purposes, like vacations and buying a home; each fund is presented visually with someone enjoying a favorite activity. Likewise, every credit union offers members the same opportunity to open special purpose savings accounts, but they don’t make an effort to appeal visually or emotionally to their members, so those services are lightly used.</p> <p>“My challenges to all of you is to <strong>put pressure on your web design vendors</strong>,” Hites said. “They have to make it look good. When you look at what they’re doing for some of the big companies and fintechs, it’s streamlined and beautiful, whereas ours tend to be clunky.”</p> <p><b id="docs-internal-guid-c800b589-7fff-510f-993f-a18526994c99"><a href="https://biztechmagazine.com/article/2019/02/bank-branch-future-here-now" target="_blank">MORE FROM BIZTECH: Check out how modern tech is making the branch of the future a reality today.</a></b></p> <h2>Fintechs Make Things Easy for Customers</h2> <p>Having taken over retail, <strong>will Amazon begin offering financial services next?</strong> Many conference attendees thought so, and Hites said credit unions would be wise to consider the online giant’s core competency.</p> <p>“What Amazon does really well is they reduce customer friction,” she said. “They make things easy and fast.”</p> <p>When it realized in its early days that customers were reluctant to purchase books without knowing what others thought, Amazon added reviews. When it realized that customers were annoyed with having to repeatedly enter credit card information, it developed its one-click checkout experience.</p> <p><strong>Amazon has already broken into several areas of the financial services business</strong>, like small business lending, and “checking accounts, small business credit cards and even mortgages all appear to be in the company’s sights,” <a href="https://www.americanbanker.com/slideshow/how-amazon-is-shaking-up-financial-services" target="_blank">reports</a> <em>American Banker</em>.</p> <p>Whether the company ends up competing directly with them or not, Hites argues that credit unions should emulate its approach to customer experience: “Have you noticed that Amazon is not always the cheapest option now? They’re not, but people still use them because they’ve reduced all the friction.”</p> <p><a data-entity-type="" data-entity-uuid="" href="https://www.cdw.com/content/cdw/en/orchestration/modern-workforce.html?cm_mmc=Vanity-_-modernworkforce-_-NA-_-042018" target="_blank"><img alt="Modern-Workforce_the-office.jpg" data-entity-type="" data-entity-uuid="" src="https://biztechmagazine.com/sites/biztechmagazine.com/files/Modern-Workforce_the-office.jpg" /></a></p> <h2>Fintechs Focus on Helping Customers Improve Their Financial Health</h2> <p>Fintech applications are built to help people see clearly how their own actions are helping them improve their financial situations. The Acorns app, for example, lets people invest their spare change from purchases into the stock market. The app lets people see how their money is growing.</p> <p>“Overwhelmingly, <strong>what we hear from customers is, ‘I want your help to grow financially and build wealth</strong>,’ and we respond with, ‘Here’s a money market account.’ And that’s not what they’re looking for,” Hites said. “So, these apps come along and show people how to save and grow incrementally. Our studies and surveys continue to tell us that people want help. Not necessarily more technology. It’s not the tech that’s going to beat us. It’s not. It comes down to the experience.”</p> <p>The truth is that credit unions already have products that can help people grow financially, like those money market accounts. What they haven’t done is <strong>packaged those products in a way that helps people see how they’re doing</strong> and that encourages them to continue to act in their own interests.</p> <p>“Tools that monitor or track one’s financial life are different from those that optimize or improve performance,” she said.</p> <p><em>Follow along with our CUNA Tech Council Conference coverage on Twitter at <a href="https://twitter.com/BizTechMagazine" target="_blank">@BizTechMagazine</a> or the official conference Twitter account, <a href="https://twitter.com/hashtag/TECHCouncil?src=hashtag_click" target="_blank">#TECHCouncil</a>.You can also check back <a href="https://biztechmagazine.com/cuna-technology-council-conference" target="_blank">here</a>.</em></p> </div> <div> <div class="field-author"><a href="/author/bob-keaveney" hreflang="en">Bob Keaveney</a></div> </div> Mon, 16 Sep 2019 19:04:48 +0000 Bob.Keaveney_u64t 44751 at https://biztechmagazine.com Modern IT Infrastructure Insight Report https://biztechmagazine.com/ad/modern-it-infrastructure-insight-report <span>Modern IT Infrastructure Insight Report</span> <span><span lang="" about="/dashboard/hanorahsrihari" typeof="schema:Person" property="schema:name" datatype="">hanorah.srihari</span></span> <span>Fri, 09/13/2019 - 19:53</span> <div class="pw-widget pw-size-medium pw-layout-vertical" data-layout="vertical" data-url="https://biztechmagazine.com/ad/modern-it-infrastructure-insight-report" data-title="Modern IT Infrastructure Insight Report" data-via="BizTechMagazine" data-button-background="none"> <span> <span>Sep</span> <span>13</span> <span>2019</span> </span> <a class="pw-button-twitter cdw-taboola-social"></a> <a class="pw-button-facebook cdw-taboola-social"></a> <a class="pw-button-linkedin cdw-taboola-social"></a> <a class="pw-button-reddit cdw-taboola-social"></a> <a class="pw-button-flipboard cdw-taboola-social"></a> <a class="pw-button-email cdw-taboola-social"></a> <!-- Pinterest button is in EdTechk12 theme's vertical template --> </div> <div class="pw-widget pw-size-medium pw-layout-horizontal" data-counter="true" data-url="https://biztechmagazine.com/ad/modern-it-infrastructure-insight-report" data-title="Modern IT Infrastructure Insight Report" data-via="BizTechMagazine" data-button-background="none"> <div> <a class="pw-button-twitter cdw-taboola-social"></a> <a href="https://twitter.com/search?f=realtime&amp;q=https%3A%2F%2Fbiztechmagazine.com%2Frss.xml%3Fc%3D56" target="_blank"><span class="pw-box-counter cdw-taboola" data-channel="twitter"></span></a> </div> <div> <a class="pw-button-facebook cdw-taboola-social"></a> </div> <div> <a class="pw-button-linkedin cdw-taboola-social"></a> </div> <div> <a class="pw-button-reddit cdw-taboola-social"></a> </div> <div> <a class="pw-button-flipboard cdw-taboola-social"></a> </div> <div> <a class="pw-button-email cdw-taboola-social"></a> </div> <!-- Pinterest button is in EdTechk12 theme's horizontal template --> </div> <div class="pw-widget pw-size-medium pw-layout-horizontal" data-url="https://biztechmagazine.com/ad/modern-it-infrastructure-insight-report" data-title="Modern IT Infrastructure Insight Report" data-via="BizTechMagazine" data-button-background="none"> <div> <a class="pw-button-twitter"></a> <span class="pw-box-counter" pw:channel="twitter"></span> </div> <div> <a class="pw-button-facebook"></a> <span class="pw-box-counter" pw:channel="facebook"></span> </div> </div> Fri, 13 Sep 2019 23:53:21 +0000 hanorah.srihari 44741 at https://biztechmagazine.com Digital Transformation Insight Report https://biztechmagazine.com/ad/digital-transformation-insight-report-0 <span>Digital Transformation Insight Report</span> <span><span lang="" about="/dashboard/hanorahsrihari" typeof="schema:Person" property="schema:name" datatype="">hanorah.srihari</span></span> <span>Fri, 09/13/2019 - 19:38</span> <div class="pw-widget pw-size-medium pw-layout-vertical" data-layout="vertical" data-url="https://biztechmagazine.com/ad/digital-transformation-insight-report-0" data-title="Digital Transformation Insight Report" data-via="BizTechMagazine" data-button-background="none"> <span> <span>Sep</span> <span>13</span> <span>2019</span> </span> <a class="pw-button-twitter cdw-taboola-social"></a> <a class="pw-button-facebook cdw-taboola-social"></a> <a class="pw-button-linkedin cdw-taboola-social"></a> <a class="pw-button-reddit cdw-taboola-social"></a> <a class="pw-button-flipboard cdw-taboola-social"></a> <a class="pw-button-email cdw-taboola-social"></a> <!-- Pinterest button is in EdTechk12 theme's vertical template --> </div> <div class="pw-widget pw-size-medium pw-layout-horizontal" data-counter="true" data-url="https://biztechmagazine.com/ad/digital-transformation-insight-report-0" data-title="Digital Transformation Insight Report" data-via="BizTechMagazine" data-button-background="none"> <div> <a class="pw-button-twitter cdw-taboola-social"></a> <a href="https://twitter.com/search?f=realtime&amp;q=https%3A%2F%2Fbiztechmagazine.com%2Frss.xml%3Fc%3D56" target="_blank"><span class="pw-box-counter cdw-taboola" data-channel="twitter"></span></a> </div> <div> <a class="pw-button-facebook cdw-taboola-social"></a> </div> <div> <a class="pw-button-linkedin cdw-taboola-social"></a> </div> <div> <a class="pw-button-reddit cdw-taboola-social"></a> </div> <div> <a class="pw-button-flipboard cdw-taboola-social"></a> </div> <div> <a class="pw-button-email cdw-taboola-social"></a> </div> <!-- Pinterest button is in EdTechk12 theme's horizontal template --> </div> <div class="pw-widget pw-size-medium pw-layout-horizontal" data-url="https://biztechmagazine.com/ad/digital-transformation-insight-report-0" data-title="Digital Transformation Insight Report" data-via="BizTechMagazine" data-button-background="none"> <div> <a class="pw-button-twitter"></a> <span class="pw-box-counter" pw:channel="twitter"></span> </div> <div> <a class="pw-button-facebook"></a> <span class="pw-box-counter" pw:channel="facebook"></span> </div> </div> Fri, 13 Sep 2019 23:38:38 +0000 hanorah.srihari 44736 at https://biztechmagazine.com Retail Technology Creates a Need for Speed https://biztechmagazine.com/article/2019/09/retail-technology-creates-need-speed <span>Retail Technology Creates a Need for Speed</span> <span><span lang="" about="/user/62836" typeof="schema:Person" property="schema:name" datatype="">Elizabeth_Neus_pdwC</span></span> <span>Fri, 09/13/2019 - 09:08</span> <div><p>The personal touch has long been a cornerstone of good customer service. By interacting with shoppers on a human level, store associates can make customers feel valued, help them find what they need and engage in a little upselling in the process. </p> <p>But now, with the advent of new forms of retail technology, consumers seem <strong>less interested in receiving personal attention</strong> and are prioritizing simply getting into and out of stores quickly with the things they need. </p> <p>According to the <a href="https://www.soti.net/resources/newsroom/2019/annual-connected-retailer-survey-new-soti-survey-reveals-us-consumers-prefer-speed-and-convenience-when-shopping-with-limited-human-interaction/" target="_blank">2019 Annual Connected Retailer Survey</a> from mobile and Internet of Things management solutions provider SOTI, “consumers desire technology that enables a quicker and more convenient in-store shopping experience with limited human interaction,” said Shash Anand, vice president of product strategy, in a press release.</p> <p>“These results prove <strong>the critical role that mobile technology plays</strong> in reducing many of the challenges of the seamless customer experience through solutions that reduce cost, complexity and downtime in a secured for mobile, yet accessible fashion,” he added.</p> <p>“In an era where mobility can be taken to endless possibilities, retailers need to evolve beyond traditional mobile technology management to <strong>capitalize on new customer expectations quickly</strong> and efficiently."</p> <p><a href="https://biztechmagazine.com/article/2019/08/5-ways-retailers-are-using-technology-change-how-we-buy-food" target="_blank"><em><strong>MORE FROM BIZTECH:</strong> Learn how grocers are using technology to change how customers buy food.</em></a></p> <h2 id="toc_0">Retail Customers Want More Mobile, Handheld Solutions</h2> <p>According to SOTI’s survey, 85.3 percent of consumers are in favor of handheld or fixed devices to check inventory and prices, <strong>a 51 percent increase from a year before</strong>. Additionally, 41.7 percent say they’re in favor of mobile register solutions (a 64.3 percent spike over the year before), and 22.3 percent say they’re in favor of retailers using handheld devices to communicate with the back room (a 29.7 percent year-over-year increase). </p> <p><strong>Only 13.3 percent of shoppers say they’re not in favor of stores deploying new retail technologies</strong> — a drop of 62.2 percent from the previous year. </p> <p><a data-entity-type="" data-entity-uuid="" href="https://www.cdw.com/content/cdw/en/orchestration/digital-transformation-report.html" tabindex="-1" target="_blank"><img alt="Digital%20Transformation_IR_1.jpg" data-entity-type="" data-entity-uuid="" src="https://fedtechmagazine.com/sites/fedtechmagazine.com/files/Digital%20Transformation_IR_1.jpg" /></a></p> <h2 id="toc_1">New Tech for Shopping and Shipping Not Frequently Used</h2> <p>The survey also touched on emerging tech solutions for ordering and shipping. While virtual assistants have the potential to change the way people shop, SOTI’s survey revealed that <strong>only 25 percent of consumers with a virtual assistant have used it </strong>for voice-activated shopping. </p> <p>And while the portion of customers comfortable with new shipping solutions in general has grown, <strong>fewer than half say they’re comfortable with retailers and transportation companies using drones</strong> (37.1 percent) or autonomous vehicles (35.5 percent). </p> <p>Overall, said Anand, the report’s findings highlight the need for retailers to implement and support tech solutions that will simplify customers’ shopping experiences. </p> <p>“Retailers need to invest in <strong>platforms that provide a holistic mobile experience </strong>— from the ability to build mobile apps, that are both consumer- and sales associate-facing, manage critical processes, to being able to quickly troubleshoot devices on the floor to reduce downtime, and ultimately customer frustration,” he said.</p> </div> <div> <div class="field-author"><a href="/author/calvin-hennick" hreflang="en">Calvin Hennick</a></div> </div> Fri, 13 Sep 2019 13:08:15 +0000 Elizabeth_Neus_pdwC 44731 at https://biztechmagazine.com What Are the Most Vital AI Applications for Credit Unions? https://biztechmagazine.com/article/2019/09/what-are-most-vital-ai-applications-credit-unions <span>What Are the Most Vital AI Applications for Credit Unions?</span> <span><span lang="" about="/dashboard/bobkeaveneyu64t" typeof="schema:Person" property="schema:name" datatype="">Bob.Keaveney_u64t</span></span> <span>Thu, 09/12/2019 - 16:45</span> <div><p>The world is not soon going to be taken over by robots <span style="font-size:12.0pt"><span style="font-family:&quot;Times New Roman&quot;,serif">—</span></span> and neither are credit unions. But for the latter, <strong>bots can be a crucial component of member engagement</strong> and employee productivity.</p> <p>So argued Matt Kinney, founder and CEO of Attando Technologies, a provider of artificial intelligence solutions to credit unions, speaking Sept. 12 at the Credit Union National Association (CUNA) Technology Council in Chicago.</p> <p>“You can’t go to a conference in 2019, without hearing the <strong>hype associated with AI</strong>,” said Kinney. “But I want to make sure we don’t overpromise and underdeliver, because there’s a lot of that going on.”</p> <p>Instead, he suggested that credit unions focus their AI development on four distinct use cases:</p> <h2>1. Chatbots Are Central to Credit Unions’ AI Strategies</h2> <p>Chatbots are the among most common applications of AI inside retail banks and credit unions, and for good reason: Customers have come to <strong>expect a convenient, frictionless, conversational experience with their financial institutions</strong> at all times. They’re interacting daily with Amazon and other digital-native businesses, and those interactions have reset their expectations.</p> <p>Kinney noted that in his home state of North Carolina, he was able to use a text-based application recently to renew his automobile registration with the state’s Department of Motor Vehicles. </p> <p>“They made it really simple, and — dare I say — an even pleasurable DMV experience,” he said. “My point is, even at what we think of as the lowest common denominator, this is the kind of experience your members are expecting to have.”</p> <p><a data-entity-type="" data-entity-uuid="" href="https://www.cdw.com/content/cdw/en/orchestration/digital-transformation-report.html" tabindex="-1" target="_blank"><img alt="Digital%20Transformation_IR_1.jpg" data-entity-type="" data-entity-uuid="" src="https://fedtechmagazine.com/sites/fedtechmagazine.com/files/Digital%20Transformation_IR_1.jpg" /></a></p> <p>To make their deployments more successful, Kinney said, <strong>credit unions should set customer expectations fairly</strong>. A chatbot on a credit union website is not Amazon’s Alexa: It can’t tell jokes or answer history questions. When done right, it will be a specific-use bot, well trained to manage a customer or prospect through common issues.</p> <p>Still, he said, a good chatbot should be able to go beyond the basics. It should be able to authenticate members and potentially help them with their own accounts; to do that, the AI needs to be integrated with the institution’s core banking system. It should also be able to turn the interaction over to a human agent when necessary.</p> <p>“The value is really in the authenticated experiences,” Kinney said. “It’s great to be able to do FAQs, but <strong>the greatest value is being able to answer real members’ questions</strong>, to be able to authenticate them as members and handle their real problems.”</p> <h2>2. AI-Driven Co-Pilots Can Save Credit Union Members Time</h2> <p>Like any financial institution, processes within credit unions can be cumbersome and difficult for members to navigate.</p> <p>An AI-driven “co-pilot” can help members through them. Such a use case is helpful when a credit union has identified a specific problem that artificial intelligence can help solve. For example, Kinney said, an online lenders’ <strong>members were abandoning its debt-relief application</strong> before completing it, so they built a co-pilot — essentially, a special-purpose chatbot — to intervene when prospects seem to be wavering. The bot is trained to proactively provide information that would help the customer continue with the application, and to answer relevant questions.</p> <p><a _blank="" href="https://biztechmagazine.com/article/2019/08/5-questions-ask-about-buying-ai-enabled-security-software" target="_blank"><em><strong>MORE FROM BIZTECH:</strong> Before spending money on AI-enabled security software, make sure you know what you're getting.</em></a></p> <h2>3. Agent-Assist Bots Help Credit Union Employees Provide Better Service</h2> <p>When a customer or prospect interacts with a live agent in a call center or chat room, an agent assist bot can monitor the interaction and offer the agent appropriate canned responses or other resources to help the agent successfully navigate the call. </p> <h2>4. RPA Can Increase Credit Union Employees’ Productivity</h2> <p>Robotic process automation is the use of bots to complete repetitive and typically laborious tasks, enabling humans to focus on other things. <strong>RPA is growing quickly in popularity, especially among financial institutions</strong> where employees perform a large amount of routine data entry.</p> <p>But there are some pitfalls with RPA, says Kinney, including the tendency of credit unions to sometimes “chase shiny objects.” Because RPA is hot, executives sometimes want to deploy it before clearly identifying how it should fit into their overall workflow. “The CEO says, ‘We have to be doing this,’ and they struggle because the next week, it’s blockchain,” Kinney said.</p> <p><em>Follow along with our CUNA Tech Council Conference coverage on Twitter at <a href="https://twitter.com/BizTechMagazine" target="_blank">@BizTechMagazine</a> or the official conference Twitter account, <a href="https://twitter.com/hashtag/TECHCouncil?src=hashtag_click" target="_blank">#TECHCouncil</a>.You can also check back <a href="https://biztechmagazine.com/cuna-technology-council-conference" target="_blank">here</a>.</em></p> </div> <div> <div class="field-author"><a href="/author/bob-keaveney" hreflang="en">Bob Keaveney</a></div> </div> Thu, 12 Sep 2019 20:45:55 +0000 Bob.Keaveney_u64t 44726 at https://biztechmagazine.com For Credit Unions, Advanced Data Analytics Is Key to Growth https://biztechmagazine.com/article/2019/09/credit-unions-advanced-data-analytics-key-growth <span>For Credit Unions, Advanced Data Analytics Is Key to Growth</span> <span><span lang="" about="/dashboard/bobkeaveneyu64t" typeof="schema:Person" property="schema:name" datatype="">Bob.Keaveney_u64t</span></span> <span>Thu, 09/12/2019 - 16:04</span> <div><p>Consider the simple goal of a credit union executive: She wants to reward her institution’s most valuable members by paying a special dividend to them each year. But who are they?</p> <p>They’re the <strong>members who help the credit union stay capitalized</strong> by maintaining an average daily balance of at least $1,000, or by having an outstanding loan balance of more than $5,000. They also save the institution money by using digital services; they haven’t visited a branch or called the call center in at least a quarter.</p> <p>So the task seems simple: Just identify those members, and pay out the dividend.</p> <p>Now consider the plight of the credit union data analyst charged with producing the list. It’s not so easy, because the <strong>relevant data is maintained in different systems</strong>. Combining those data sources to generate an answer to a seemingly simple business question is a challenge.</p> <p>“For the business, this seems like a simple problem,” said Raj Rathi, director of data management with AdvantEdge Analytics. “‘Why can’t I get this list of people who fit this criteria? But it’s a technical, difficult problem for the data team.”</p> <p><a data-entity-type="" data-entity-uuid="" href="https://www.cdw.com/content/cdw/en/orchestration/hybrid-cloud-infrastructure-report.html" target="_blank"><img alt="IT%20Infrastructure_IR_1%20(2)_0.jpg" data-entity-type="" data-entity-uuid="" src="https://fedtechmagazine.com/sites/fedtechmagazine.com/files/IT%20Infrastructure_IR_1%20(2)_0.jpg" /></a></p> <h2 id="toc_0">Credit Unions Need Advanced Data Analytics to Compete</h2> <p>Speaking at the <strong>annual meeting of the <a href="https://www.cunacouncils.org/events-calendar/14529/conference-details/" target="_blank">Credit Union National Association (CUNA) Technology Council</a> </strong>in Chicago, Rathi said credit unions must make data analytics central to their growth plans because their traditional selling points are being challenged by emerging competitors and the advance of time.</p> <p>Online-only banks and other fintechs are able to offer the kind of attractive interest rates that credit unions have long been known for. And while their reputation for personal service remains good, customers in the digital era are used to serving themselves online — and want to do so on their own time, not during bankers’ hours.</p> <p>To compete, <strong>credit unions must use data to understand their customers on a personal level so they can develop digital products</strong> that meet their needs.</p> <p>“What we used to do in the branches — we knew Joe, we’d talk to him and give him personal service — we now want to give people the same the same experience in digital channels,” said Rathi.</p> <p>But that requires <strong>a sophisticated approach to data analytics</strong> and <a href="https://biztechmagazine.com/article/2019/08/what-metadata-management-and-how-can-it-teams-do-it-better-perfcon" target="_blank">governance</a>. Rathi argued that credit unions should begin with a data strategy that answers basic business questions (like how to reward the most valuable members) and then use those questions to build a multiyear data roadmap.</p> <p>After that, he said, an organization’s “data journey” moves on to answering more difficult questions about data governance and how to manage both raw and structured data, before eventually achieving the high-level benefits of guided and advanced analytics.</p> <p>Those benefits include the <strong>ability to identify trends, forecast outcomes if those trends continue, and prescribe solutions</strong>. But it all begins at the most basic level, Rathi said: “To be successful, your data journey has to start with strategy.”</p> <p><a href="https://biztechmagazine.com/article/2019/02/4-ways-data-management-translates-digital-transformation-success" target="_blank"><em><strong>MORE FROM BIZTECH: </strong>Discover four ways data management translates to digital transformation success.</em></a></p> <h2>Why Credit Unions Should Consider Data Lakes</h2> <p>Many credit unions, if they maintain data in traditional data warehouses, will find themselves stymied by an inability to answer new questions and solve emerging problems. That’s because the <strong>structured data model they’re using lacks the flexibility</strong> to adapt to new business challenges.</p> <p>A key solution is the implementation of a <a href="https://biztechmagazine.com/article/2019/02/data-lakes-prove-key-modern-data-platforms-perfcon" target="_blank">data lake</a>. Unlike a data warehouse, which maintains data process for a specific purpose, a data lake is a vast pool of raw unstructured data. For credit unions, data lakes don’t replace data warehouses — they complement them.</p> <p>“The data warehouse isn’t going away,” he said. “But <strong>a modern data management solution typically includes a data lake</strong>, which allows you to take in data from multiple sources, both structured and unstructured. The idea is to free the data from the rigid data model that exists inside the data warehouse.”</p> <p>As <a href="https://aws.amazon.com/big-data/datalakes-and-analytics/what-is-a-data-lake/" target="_blank">Amazon</a> explained on its website, “different types of analytics on your data — like SQL queries, Big Data analytics, full-text search, real-time analytics and machine learning — can be used to uncover insights” with data lakes.</p> <p>Using <strong>a data lake in conjunction with a data warehouse</strong> allows credit unions to use their data to identify and solve any business problem or question, said Rathi, because they’re flexible and extendable.</p> <p>“In data management, we need to listen carefully to what the data problem really is, and focus on solving that,” he said. “Make it simple for end users: There will no doubt be complexity behind the solution, but for the end users — our executives customers and business users — the solution needs to be intuitive.”</p> <p><em>Follow along with our CUNA Tech Council Conference coverage on Twitter at <a href="https://twitter.com/BizTechMagazine" target="_blank">@BizTechMagazine</a> or the official conference Twitter account, <a href="https://twitter.com/hashtag/TECHCouncil?src=hashtag_click" target="_blank">#TECHCouncil</a>.You can also check back <a href="https://biztechmagazine.com/cuna-technology-council-conference" target="_blank">here</a>.</em></p> </div> <div> <div class="field-author"><a href="/author/bob-keaveney" hreflang="en">Bob Keaveney</a></div> </div> Thu, 12 Sep 2019 20:04:41 +0000 Bob.Keaveney_u64t 44721 at https://biztechmagazine.com CUNA Technology Council Conference https://biztechmagazine.com/ad/cuna-technology-council-conference <span>CUNA Technology Council Conference</span> <span><span lang="" about="/dashboard/andrewstegerachh" typeof="schema:Person" property="schema:name" datatype="">Andrew.Steger_acHH</span></span> <span>Thu, 09/12/2019 - 14:54</span> <div class="pw-widget pw-size-medium pw-layout-vertical" data-layout="vertical" data-url="https://biztechmagazine.com/ad/cuna-technology-council-conference" data-title="CUNA Technology Council Conference" data-via="BizTechMagazine" data-button-background="none"> <span> <span>Sep</span> <span>12</span> <span>2019</span> </span> <a class="pw-button-twitter cdw-taboola-social"></a> <a class="pw-button-facebook cdw-taboola-social"></a> <a class="pw-button-linkedin cdw-taboola-social"></a> <a class="pw-button-reddit cdw-taboola-social"></a> <a class="pw-button-flipboard cdw-taboola-social"></a> <a class="pw-button-email cdw-taboola-social"></a> <!-- Pinterest button is in EdTechk12 theme's vertical template --> </div> <div class="pw-widget pw-size-medium pw-layout-horizontal" data-counter="true" data-url="https://biztechmagazine.com/ad/cuna-technology-council-conference" data-title="CUNA Technology Council Conference" data-via="BizTechMagazine" data-button-background="none"> <div> <a class="pw-button-twitter cdw-taboola-social"></a> <a href="https://twitter.com/search?f=realtime&amp;q=https%3A%2F%2Fbiztechmagazine.com%2Frss.xml%3Fc%3D56" target="_blank"><span class="pw-box-counter cdw-taboola" data-channel="twitter"></span></a> </div> <div> <a class="pw-button-facebook cdw-taboola-social"></a> </div> <div> <a class="pw-button-linkedin cdw-taboola-social"></a> </div> <div> <a class="pw-button-reddit cdw-taboola-social"></a> </div> <div> <a class="pw-button-flipboard cdw-taboola-social"></a> </div> <div> <a class="pw-button-email cdw-taboola-social"></a> </div> <!-- Pinterest button is in EdTechk12 theme's horizontal template --> </div> <div class="pw-widget pw-size-medium pw-layout-horizontal" data-url="https://biztechmagazine.com/ad/cuna-technology-council-conference" data-title="CUNA Technology Council Conference" data-via="BizTechMagazine" data-button-background="none"> <div> <a class="pw-button-twitter"></a> <span class="pw-box-counter" pw:channel="twitter"></span> </div> <div> <a class="pw-button-facebook"></a> <span class="pw-box-counter" pw:channel="facebook"></span> </div> </div> Thu, 12 Sep 2019 18:54:49 +0000 Andrew.Steger_acHH 44716 at https://biztechmagazine.com Cybercriminals Step Up Malware Attacks Against Financial Firms https://biztechmagazine.com/article/2019/09/cybercriminals-step-malware-attacks-against-financial-firms <span>Cybercriminals Step Up Malware Attacks Against Financial Firms</span> <span><span lang="" about="/dashboard/mickeymccartermt7e" typeof="schema:Person" property="schema:name" datatype="">Mickey.McCarter_mT7E</span></span> <span>Thu, 09/12/2019 - 12:36</span> <div><p>According to a 2019 report, 25 percent of all malware attacks are aimed at banks and other financial services organizations — <strong>more than any other industry</strong>. </p> <p>It’s hardly news, of course, that financial services firms are prime <strong>targets for cyberattackers</strong>. In fact, with the data and financial assets they are entrusted with safeguarding, it would be shocking if banks and other financial institutions weren’t facing constant intrusion attempts. Still, it’s important for business and IT leaders in the financial services sector to stay up to speed on the exact nature of the threat they’re facing. </p> <p>Here are some need-to-know facts about the <strong>current state of the cybersecurity landscape</strong> in financial services. </p> <h2>Breaches and Attacks Are Up Against Credit Card Companies</h2> <p>In 2019, financial services firms reported huge year-over-year increases in the number of attacks, breaches and data thefts, <a href="https://www.forbes.com/sites/zakdoffman/2019/04/29/new-cyber-report-25-of-all-malware-hits-financial-services-card-fraud-up-200/" target="_blank">according to an April report from cyberthreat intelligence company IntSights</a>. The number of compromised credit cards was <strong>up 212 percent</strong>, credential leaks increased 129 percent and malicious apps grew in number by 102 percent. </p> <p>The author of the report, Hadar Rosenberg, told Forbes that threats are growing not only in number, but <strong>also in sophistication</strong>. “Around the globe, banks are seeing more frequent and more aggressive cyberattacks, and the severity and sophistication of these attacks are increasing all the time,” Hadar said. </p> <h2><a href="https://www.cdw.com/content/cdw/en/orchestration/cyber-security-report.html" target="_blank"><img alt="" src="https://biztechmagazine.com/sites/biztechmagazine.com/files/Cybersecurity_IR_stayprotected_700x220_3.jpg" /></a></h2> <h2>Financial Fraud Is Going Social with Stolen Information</h2> <p>Earlier this year, <a href="https://blog.talosintelligence.com/2019/04/hiding-in-plain-sight.html" target="_blank">researchers from Cisco Talos reported</a> that they had compiled a list of <strong>74 different Facebook groups</strong> whose members promised to carry out “an array of questionable cyber dirty deeds,” including the selling and trading of stolen bank and credit card information, the theft and sale of account credentials from a variety of websites, and email spamming tools and services. Those 74 groups had about 385,000 members total. </p> <p>“These Facebook groups are quite easy to locate for anyone possessing a Facebook account,” Talos researchers wrote in an April blog post. “A simple search for groups containing keywords such as ‘spam,’ ‘carding,’ or ‘CVV’ will typically return multiple results. Of course, once one or more of these groups has been joined, Facebook’s own algorithms will often suggest similar groups, making <strong>new criminal hangouts</strong> even easier to find.”</p> <p>Talos tried to take down the groups through Facebook’s abuse reporting function. While some groups were wiped out after the abuse reports, other groups only had specific posts removed until Talos directly contacted <strong>Facebook’s security team</strong>. “New groups continue to pop up, and some are still active as of the date of publishing,” the researchers noted. </p> <h2>Federal Government Takes Notice of Financial Crimes</h2> <p>The SEC’s Office of Compliance Inspections and Examinations highlighted c<strong>ybersecurity as a priority</strong> in 2019. And, during the first half of the year, <a href="https://www.sec.gov/ocie" target="_blank">the office issued three risk alerts</a> to financial advisers pertaining to the use of social media, remote email, customer data privacy and cloud-based storage. </p> <p><a href="https://biztechmagazine.com/article/2019/08/businesses-deploy-mfa-worker-resistance-declines" target="_blank"><em><strong>MORE FROM BIZTECH: </strong>Learn how businesses are increasing deploying multi-factor authentication to guard against unauthorized access.</em></a></p> <h2>Banks Invest in Solutions to Combat Breaches</h2> <p>News reports peg the cost of <a href="https://www.reuters.com/article/us-equifax-cyber/equifax-breach-could-be-most-costly-in-corporate-history-idUSKCN1GE257" target="_blank">the data breach that hit Equifax in 2017</a> at over $600 million. With so much at stake, financial institutions are stepping up their cybersecurity investments to combat the growing threat of <strong>malware and social engineering attacks</strong>. <a href="https://www2.deloitte.com/us/en/insights/industry/financial-services/cybersecurity-maturity-financial-institutions-cyber-risk.html" target="_blank">According to a May report from Deloitte</a>, financial institutions are spending an average of $2,300 per full-time employee on cybersecurity, with some firms paying as much as $3,000 per year. However, the report warns that even highly mature companies need to continue to improve and adapt to the changing cybersecurity landscape. </p> <p>“Achieving excellence in cybersecurity will … likely remain an ongoing journey, with many twists and turns, rather than an ultimate destination,” the report states. “Cyberattacks continue to be bolder and more sophisticated, <strong>challenging financial institutions</strong> to respond in kind. Companies will need to continuously upgrade their capabilities — both human and technological — to remain secure, vigilant, and resilient.”</p> </div> <div> <div class="field-author"><a href="/author/calvin-hennick" hreflang="en">Calvin Hennick</a></div> </div> Thu, 12 Sep 2019 16:36:26 +0000 Mickey.McCarter_mT7E 44711 at https://biztechmagazine.com CUNA Technology Council Conference https://biztechmagazine.com/cuna-technology-council-conference <span>CUNA Technology Council Conference</span> <span><span lang="" about="/dashboard/andrewstegerachh" typeof="schema:Person" property="schema:name" datatype="">Andrew.Steger_acHH</span></span> <span>Thu, 09/12/2019 - 10:57</span> <div><p>Join <em>BizTech</em> magazine as we cover the 2019 Technology Council Conference of the Credit Union National Association in Chicago. Be sure to check here for all the latest from this event!</p> </div> <div> <div>Event Image Toggle</div> <div>Off</div> </div> <div class="pw-widget pw-size-medium pw-layout-vertical" data-layout="vertical" data-url="https://biztechmagazine.com/cuna-technology-council-conference" data-title="CUNA Technology Council Conference" data-via="BizTechMagazine" data-button-background="none"> <span> <span>Sep</span> <span>12</span> <span>2019</span> </span> <a class="pw-button-twitter cdw-taboola-social"></a> <a class="pw-button-facebook cdw-taboola-social"></a> <a class="pw-button-linkedin cdw-taboola-social"></a> <a class="pw-button-reddit cdw-taboola-social"></a> <a class="pw-button-flipboard cdw-taboola-social"></a> <a class="pw-button-email cdw-taboola-social"></a> <!-- Pinterest button is in EdTechk12 theme's vertical template --> </div> <div class="pw-widget pw-size-medium pw-layout-horizontal" data-counter="true" data-url="https://biztechmagazine.com/cuna-technology-council-conference" data-title="CUNA Technology Council Conference" data-via="BizTechMagazine" data-button-background="none"> <div> <a class="pw-button-twitter cdw-taboola-social"></a> <a href="https://twitter.com/search?f=realtime&amp;q=https%3A%2F%2Fbiztechmagazine.com%2Frss.xml%3Fc%3D56" target="_blank"><span class="pw-box-counter cdw-taboola" data-channel="twitter"></span></a> </div> <div> <a class="pw-button-facebook cdw-taboola-social"></a> </div> <div> <a class="pw-button-linkedin cdw-taboola-social"></a> </div> <div> <a class="pw-button-reddit cdw-taboola-social"></a> </div> <div> <a class="pw-button-flipboard cdw-taboola-social"></a> </div> <div> <a class="pw-button-email cdw-taboola-social"></a> </div> <!-- Pinterest button is in EdTechk12 theme's horizontal template --> </div> <div class="pw-widget pw-size-medium pw-layout-horizontal" data-url="https://biztechmagazine.com/cuna-technology-council-conference" data-title="CUNA Technology Council Conference" data-via="BizTechMagazine" data-button-background="none"> <div> <a class="pw-button-twitter"></a> <span class="pw-box-counter" pw:channel="twitter"></span> </div> <div> <a class="pw-button-facebook"></a> <span class="pw-box-counter" pw:channel="facebook"></span> </div> </div> Thu, 12 Sep 2019 14:57:00 +0000 Andrew.Steger_acHH 44706 at https://biztechmagazine.com Retailers Ramp Up Investments in Omnichannel https://biztechmagazine.com/article/2019/09/retailers-ramp-investments-omnichannel <span>Retailers Ramp Up Investments in Omnichannel</span> <span><span lang="" about="/user/62836" typeof="schema:Person" property="schema:name" datatype="">Elizabeth_Neus_pdwC</span></span> <span>Thu, 09/12/2019 - 08:59</span> <div><p>Retailers have been working for years to connect their different shopping platforms to boost customer satisfaction and thrive in the face of industrywide disruption, but there’s a world of difference between recognizing value in the goals of omnichannel sales and actually achieving them.</p> <p>“Retailers have been talking about omnichannel investments for over a decade,” writes Forrester retail analyst <a href="https://go.forrester.com/blogs/the-state-of-retailing-online-2019-omnichannel-personalization-and-marketing/" target="_blank">Sucharita Kodali</a> in a recent report, “but <strong>many retailers still don’t have basic omnichannel capabilities</strong> in place.” </p> <p>According to the report, titled <a href="https://www.forrester.com/report/The+State+Of+Retailing+Online+2019+Omnichannel+Marketing+And+Personalization/-/E-RES144498" target="_blank">“The State Of Retailing Online 2019: Omnichannel, Marketing, And Personalization,”</a> retailers are still struggling to overcome a number of challenges related to omnichannel sales, but <strong>are making investments</strong> to overcome these hurdles and create a more streamlined, personalized shopping experience. </p> <p><a href="https://biztechmagazine.com/article/2019/01/nrf-2019-whats-hot-retail-innovation-2019" target="_blank"><em><strong>MORE FROM BIZTECH: </strong>Discover what’s hot in retail innovation.</em></a></p> <h2 id="toc_0">Focus on Inventory for Successful Omnichannel Implementation</h2> <p>Among the report’s findings: </p> <p><strong>C-level support is critical.</strong> One of the challenges holding back omnichannel efforts is lackluster commitment on the part of leadership.</p> <p>“The success of any cross-channel initiative depends on the <strong>senior-most team members endorsing such programs</strong>,” Kodali writes. “Several senior executives whom Forrester interviewed in 2018 still don’t prioritize digital channels enough and focus instead on their core businesses and historic capabilities.” </p> <p>According to the report, <strong>39 percent </strong>of surveyed retail sources strongly agreed that their company’s CEO has a “clear vision for omnichannel fulfillment in our business,” while 20 percent disagreed with the statement. </p> <p><strong>Inventory visibility and accuracy remain challenging.</strong> “The most important investment for any omnichannel program is to ensure that shoppers, store associates, and suppliers know which products are where in every store,” Kodali writes. “Many retailers surveyed have still not achieved that vision.” </p> <p>Fifty-six percent of retail respondents said that inventory accuracy was a problem for their omnichannel efforts, and 65 percent said that <strong>forecasting cross-channel demand with <a href="https://biztechmagazine.com/article/2019/06/how-improve-retail-customer-experience-through-inventory-analytics" target="_blank">inventory planning systems</a> presented a challenge</strong>. </p> <p>More than half (53 percent) of surveyed retailers said they <strong>planned to invest in order management systems</strong> this year, which should improve inventory accuracy and order routing. </p> <h2 id="toc_1">Stores Are Stepping Up Omnichannel Investment</h2> <p><strong>Personalization also remains a challenge.</strong> The report notes that retailers are still seeking solutions to measure customer behavior across channels, which would help to better personalize the shopping experience. Currently, <strong>personalization efforts tend to center on web channels</strong>, with 67 percent of surveyed retailers personalizing recommendations for shoppers, and another 60 percent segmenting emails. </p> <p><strong>Operational improvements are needed.</strong> “At the most basic level, retailers appear stymied by the metrics they should hold stores accountable to, underscoring that <strong>incrementality is often difficult to measure</strong>,” the report states. </p> <p>“Stores have had problems with allocating space to stage omnichannel pickups and to handle fundamental offerings like online returns in stores. Furthermore, retailers need to <strong>train customer service teams to manage complaints </strong><a href="https://biztechmagazine.com/article/2019/09/nrf-customers-rely-technology-shop-want-process-be-smoother" target="_blank">when customers request information </a>that touches multiple channels.” </p> <p>While many stores have made significant progress in implementing omnichannel systems and processes, <strong>others are just now beginning to make these investments.</strong> For instance, 66 percent of surveyed retailers had ship-from-store capabilities by 2018, with another 17 percent saying they planned to introduce such a program this year. </p> <p>Similarly, 67 percent said they had introduced buy online, return in-store, or BORIS, by 2018, with 14 percent planning to implement the feature in 2019. Just under half (44 percent) of retailers offered buy online, pick up in-store by 2018, while 30 percent said they planned to introduce BOPIS in 2019, making it the most common area of fulfillment investment this year. </p> <p><a data-entity-type="" data-entity-uuid="" href="https://www.cdw.com/content/cdw/en/orchestration/digital-transformation-report.html" tabindex="-1" target="_blank"><img alt="Digital%20Transformation_IR_1.jpg" data-entity-type="" data-entity-uuid="" src="https://fedtechmagazine.com/sites/fedtechmagazine.com/files/Digital%20Transformation_IR_1.jpg" /></a></p> </div> <div> <div class="field-author"><a href="/author/calvin-hennick" hreflang="en">Calvin Hennick</a></div> </div> Thu, 12 Sep 2019 12:59:51 +0000 Elizabeth_Neus_pdwC 44701 at https://biztechmagazine.com