Is it time to break up with your bank?

With Valentine’s Day on the horizon, people around the world are realizing just how in love they are – or, just how in love they are not. Such powerful emotions can sway individuals to make serious life decisions; decisions that may alter their future in a very real way. Of course, we’re talking about folks’ relationships with their bank.

In today’s analogy, your bank is your significant other (SO). Do you really trust your SO? Does your SO have your best interests at heart? Does your SO make you feel like you’re the most important thing in the world to them?

Perhaps instead, you’re feeling jaded; betrayed, even. Ready to stray. Abandon ship. If that’s true, then maybe it’s finally time to break up with your bank. The good news is that cupid’s arrow happens to be pointing straight toward your local credit union.

Here are just a few reasons why it might be time to call it quits with your bank and move on to a happier, healthier and more meaningful relationship with a credit union.

• Money, money, money – No one wants to spend their life paying for an absurdly expensive date, costing you more of your hard-earned money on as time goes on. Banks are notorious for hidden charges and fees, ranging from debit card usage fees to obscene overdraft charges to nonsensical ATM fees. On the other hand, credit unions will often pay you to use your card and, in some instances, even reimburse your ATM fees or forgive occasional overdraft mistakes. You want to spend your life with someone who truly cares about saving you money and invests in YOU, right?
•   Making big purchases is (slightly) easier – Buying a house or car can be overwhelming, so you want to partner with someone who is going to make it easier and help you make the right financial decisions for you. Mortgage APRs at credit unions and banks are very similar, but oftentimes credit unions will waive the origination fee, saving you thousands of dollars. Additionally, when it comes to car loans, banks’interest rates are usually slightly higher. 
• Credit unions care about others – Financial institutions in the credit union industry have a track record for going the extra mile and investing in their local or under-served communities. For example, in 2015 EPL partnered with the National Federation of Community Development Credit Unions to develop CU Impact, a core banking platform designed to scale the delivery of innovative products and services offered by credit unions operating in low-income and underserved communities.  
• You’ll be treated the right way – Credit unions have a reputation for providing exceptional customer service to their members, as they are owned and operated by the members themselves. Your experience matters. Because of this, credit unions recognize the value of spectacular customer service and creating a positive customer experience. Unlike banks, you  won’t be helped by a robot – you’ll be assisted by a real human being from start to finish. In fact, a recent survey showed that credit union customers rated their overall satisfaction at 87 percent – 13 percent higher than the highest rated bank.

These few reasons are just the tip of the iceberg. If you’re ready to break up with your bank and enter a new, satisfactory relationship, look no further than your local credit union – you won’t be let down.

Robin Kolvek

 

Senior VP of Business Development

 

EPL, Inc.

‘Tis the season for fraud

The holiday season is upon us, and we all know what that means—shopping. Lots of shopping. Unfortunately for us all, our friends and family aren’t the only ones excited about the upcoming gift-giving festivities—fraudsters are waiting in the shadows, giddy at the thought of purchases being made by people who never learned how to protect their personal and financial information.

Just two years ago, over 40 million holiday shoppers were outraged to find that hackers had stolen their credit and debit card information as they swiped their cards at Target retail locations—one of the largest hacks of its kind. Since then, the prevalence of online shopping has grown exponentially and we should expect instances of fraud to increase accordingly due to hackers’ growing abilities to infiltrate online stores. In fact, a recent ACI research study revealed that fraudulent transactions on e-commerce sites increased in 2015, with one out of every 86 transactions found to be a fraudulent attempt.

Additionally, financial institutions and retailers are in a time of transition as they switch to EMV technology, making them vulnerable to fraud. The move to switch to more secure chip cards for in-store purchases, which seeks to decrease fraud long-term, is likely to increase fraudulent attempts during the transition period. Merchants who are still running magnetic strip transactions are significantly more vulnerable, as fraudsters will target their facilities in an accelerated manner before time runs out.

Members rely heavily on credit unions to protect their data and safeguard financial transactions, but that is only half of the equation. Credit unions have a responsibility to arm their members with educational tools and practical advice on how they can decrease their chances of becoming victims of holiday fraud. Below, we’ve compiled several tips that can help keep your members safe when shopping online:  

• Beware of mobile checkouts. While e-commerce certainly makes life more convenient, online technology has an abundance of loopholes
• “Buy Buttons” are too new to trust. The addition of click-to-purchase technology to social media is transforming it into an online marketplace, but the concept is still so fresh that retailers may not have sufficient protections in place.
• Avoid opening emails you don’t recognize. As mobile technology permeates nearly every facet of our lives, phishers now are attempting to steal consumers’ financial information and inconspicuously request money through phishing attempts online, such as emails.
• Keep a close eye on your accounts. Members should pay close attention to ACH items and outgoing wires on each of their cards and accounts to ensure there is no unauthorized activity.
• Make your credit union aware of travel plans. Encourage your members to inform your credit union if they plan to travel out-of-state for the holidays. If they are not traveling, it will be simple to flag purchases made in an unusual location.
• Consider lowering daily limits. Especially during the holiday shopping season, it can be a wise move for members to lower their daily spending limit to decrease risk should their information be compromised.
• Stay educated, stay safe. Teach your members about anti-fraud measures your credit union has in place to protect them so that they better understand their own responsibilities.
• Keep the lines of communication open. It’s easier for members to pick up the phone and ask questions when there is an ongoing dialog with their credit union about online security. Perhaps someone is unsure about a charge but won’t investigate further because they are afraid to ask or don’t know who to talk to. Make your credit union a place where members feel comfortable coming to ask questions they might think are silly.

It’s important to note that there is no way to guarantee 100 percent safety for anyone. Hackers inevitably find ways to exploit system weaknesses as fast as merchants can fix them – especially online. Fortunately, by following a few simple safety precautions, your members can greatly reduce their risk of becoming another fraud statistic. So play it safe, stay smart and stop fraud before it starts.  

John Freeman

Senior VP of Compliance and Security

EPL, Inc.