Consumers in the United States reported more the 3.2 million instances of cyber-crime related to fraud, identity theft in financial services in 2019, increasing by three percent over the previous year. This rise in fraud cases, paired with an alarming rate of digital channel usage in response to COVID-19, has exacerbated the need for credit unions to look beyond traditional methods to protect credit union members.
Even before the outbreak of COVID-19, credit union leaders saw the need to turn toward tools such as MemberPass™, a new technology built to streamline processes, reduce costs and create a one-of-a-kind member identity experience. MemberPass’ technology utilizes a self-sovereign decentralized identity model, which replace identifiers such as usernames and passwords, with IDs that are self-owned and controlled by the consumer or small business member, independent of a credit union’s platform and based on distributed ledger technology to protect privacy and secure interactions or transactions. Decentralized identities are being adopted by credit unions to tackle historically time-consuming, costly processes, including new member onboarding, authentication and compliance management.
As with any new technology, credit unions may be hesitant to make the jump to implementing decentralized identities. The reasons why vary, but naturally cutting-edge technology warrants questions from credit unions pertaining to its use, value, and workflow. This is why CULedger created MemberPass Trust Registry.
MemberPass Trust Registry enables interested credit unions the opportunity to gain a glimpse into the MemberPass Trust Network. The MemberPass Trust Registry provides credential integrity protection and is an essential component of the decentralized identity ecosystem. When a credit union joins MemberPass Trust Registry, its credit union’s Public Decentralized Identifier (DID) is written to the Sovrin Global Identity Network, which is a global distributed ledger (or blockchain) designed exclusively to support digital trust networks and verifiable digital credentials.
As a participant in the MemberPass Trust Registry, other credit unions in the MemberPassTM ecosystem will know whether a credit union is registered as an issuing credit union. Credit unions are also protected from spoofing and save on time and costs in establishing and maintaining their own node on the network. Lastly, once ready, a credit union will be ready to issue MemberPass to its members.
Credit union members expect their credit unions to utilize the best technology to keep their identities safe. Joining MemberPass Trust Registry fosters a way for interested credit unions to see how new technology delivers on this expectation. MemberPass Trust Registry demonstrates to credit union leaders how there is no need for siloed or federated identity platforms. Instead, it’s much more plausible to provide members with a lifetime portable digital identity that does not depend on a central authority, bringing trust and personal control for credit unions and members.
Taking the next step toward a safer tomorrow for your credit union and your members is easy. Your first step is to become a participant in the MemberPass Trust Registry and establish a place in our implementation queue. All you need is six pieces of credit union information and $2,500 and we do the technical setup. Click here and start today!