The COVID-19 Impact on Credit Unions: Digital Trust is a Necessity

As the coronavirus changed many aspects of day-to-day life, it most certainly has impacted how credit union members interact with your credit union’s branches and call center channels. Credit unions are particularly affected as they often rely heavily on face-to-face interactions with their members. Now those faces are covered with masks.

You can’t address and plan for a pandemic and a shift in member behavior without understanding the impact for fraud. Keeping members and their information safe should be a top priority for credit unions. During the COVID-19 pandemic, fraudsters are coming out of the woodwork. A recent survey found that 22% of Americans say they have been targeted by digital fraud related to COVID-19. Some credit unions have reported seeing issues with people wearing masks trying to take over members’ accounts.

There was one reality that was proven without a doubt: Change is inevitable. Even if credit union branches remain open, 82% of consumers report concern over entering a branch and 58% state digital journeys are still broken and require physical or off-line efforts to complete transactions.

Credit unions need to redefine member engagement to increase digital trust, support remote work for staff, and most importantly continue to provide an exceptional member experience during a time of change. The key is to imagine possible outcomes and set in motion those initiatives that can position your credit union most advantageously.

  • Being “digital” is not optional. How Is your credit union prepared for the “new normal” in offering remote/digital services to your members? How will you maintain trust without physical interaction?
  • Keeping social distancing practices in place, especially in the near term. How will you verify your member’s identity if they are reluctant to share a physical form of their identity?
  • Managing increased transaction handling times in the call center and drive-up windows? Will your members remain patient if this pattern continues long term?
  • Working remotely will become much more common. How will your remote member service representatives effectively verify the identity of your members without seeing them face-to-face relying on knowledge-based verification methods that fraudsters do steal?

Members still expect a high quality of service. How your credit union delivers consistent and valuable experiences will only deepen your member relationships now and in the future.

Taking the first step toward planning for post-pandemic financial security services is available. Become a participant in CULedger’s Digital Trust Registry and establish your place in our implementation que if/when you’re ready to issue MemberPass to your members. All you need is six pieces of credit union information and $2,500 and we do the rest! Visit www.digitaltrustregistry.com and start today!

CULedger, a credit union service organization, offering MemberPassTM, the simplest most security solution to verify your members leveraging contactless, privacy-enhancing technology to protect credit unions and their members from identity theft and fraud.