Credit Union Geek

Marketing, Strategy, and The Force by Joe Winn

Category: CUbit (page 1 of 6)

Why Net Neutrality Matters To Credit Unions

You may have read something online about Net Neutrality.  Or, your techie friend insisted you submit a comment to the FCC about it.  “The fate of the Internet rests on our speaking out!”, or something along those lines.

What is it, and why am I talking about it on a credit union blog?

Put simply, it’s the principle that all information is treated equally.  And, without it, could mean the end of credit unions.

Net Neutrality has always been a part of the World Wide Web, from its humble beginnings.  Tiny upstarts like Google and Netflix got to where they are today because of net neutrality.  How?  Let’s revisit the early days of Internet Service Providers (ISPs).  They are the companies we pay to get us online.  In the early days, it was done through the screeching modem and a list of phone numbers.  Now, it’s your cable, fiber, or DSL connection.  In the 90s, dial-up was common and there were multiple choices for service.  The precursor to my own company ran on an ISP out of Miami.  They were great; fair pricing, experienced support, and we knew we were supporting a local business.  The web through one ISP was the exact same web as through another.  As a result, you knew that your website would load on any other person’s computer, and at approximately the same speed, no matter who they paid to get online, or where they were located.

Now, most of us use one of just a few mega-companies.  In fact, there’s a good chance you have no actual competition in your market.  Sure, you can choose between cable and U-Verse (AT&T) or FIOS (Verizon), but that’s not really competition, is it?  It’s like going to the market and looking for some fruit.  They might have bales of oranges from one farm.  The only other choice is a display of different oranges.  Both seem overpriced.  If you ask the staff where any other fruits are, they explain that it is illegal to carry them.  But that’s a whole separate story.

Bottom line, to get online (via a wire or your phone), you’re using one of a small list of giant corporations.  You don’t have a choice.  And they want to make more money.

Net Neutrality ensures that every site you click or every video you watch gets the same priority through your ISPs lines.  There are provisions for QoS (Quality of Service) technologies to make live communication work better (like FaceTime, Skype, or watching a live Apple event), but no one gets access to an HOV/express lane at the expense of others.  This is a good thing, as it ensures that everyone is on an even playing field.

Here’s where Net Neutrality becomes life or death for credit unions.

Imagine Net Neutrality is erased and the few mega-corporations controlling our access to the Internet decide to take sides (for profit or ideological pursuits).  Maybe Chase and Bank of America have been extremely loyal supporters of Comcast’s lobbying efforts.  It’s good to have friends.  Well, as a “reward”, Comcast decides to give both these banks priority access to all of Comcast’s customers.  Goodness, do their sites load fast on my iPad!  But I should log in to my credit union as well.  Hmm, it doesn’t seem to be loading.  What’s this?  “To access this and 3,000 other financial institution websites, please subscribe to our Banking and More package for only $5 a month.  FYI: You always have free access to Bank of America and Chase Bank!  Thanks for being a loyal Comcast subscriber.”

Do you think your members will pay to access your site?  Some might, but many will just move their banking relationship to the free sites.  Unless you can pay Comcast for priority access?  Yeah, didn’t think that was in your budget.

Oh, and I didn’t mention AT&T.  Or Verizon.  You can pay them too, right?

A loss of Net Neutrality is a loss for the entire credit union movement.

You may be thinking, “yeah, ok, it may not be good, but he’s overreacting.”  Wish I were.  Portugal has been in the news as an example of what happens when Net Neutrality goes away.  Their internet access has “zero-rating” data tiers (so you don’t accrue data usage when visiting certain sites), a first step towards this environment.

We need Net Neutrality for an open exchange of information, ideas, and business relationships.  I’m imploring you to speak out.  You may visit www.gofccyourself.com to submit a comment.  But I’d also suggest you speak to your representatives directly.

All 100 million credit union members are depending on it.

Update: Clarified web access in Portugal.

Doing The Least Possible to Minimize Card Fraud

This CUbit is a bit different.  It’s meant to be heard, rather than read.  Why?  Because why not?

Here’s a primer: Card fraud.  Up close and personal.  With a topping of, “not my department”.

What are your experiences?  How do you like the audio format?  Share in the comments below!

PS – I maintain card security like a fiend.  I avoid letting the card go out of my sight (as at restaurants), use the card only at EMV (chip) terminals, and make most of my purchases using Apple Pay.  I won’t use gas pump card swipes (I get branded gift cards instead).  For online purchases, I create one-time use numbers for merchants I don’t trust (essentially, if they’re not Apple or Amazon).  All my accounts use unique and complex passwords with two-step verification where available.  If my information can get stolen (still don’t know how), anyone’s can.  It’s why I support merchant security standards and encourage use of tokenized payment systems.

ApplePay & Your Credit Union

Updated 11/13/17 with latest info on ApplePay Cash.

Yesterday, Apple hosted their annual Worldwide Developer’s Conference Keynote. Of their big public events, this is my favorite, as it discusses the technologies they’re pursuing, rather than simply the newest iPhone. And are they pursuing.

There are great sites to read up on the highlights (ArsTechnica is my favorite). From iOS 11 to macOS High Sierra (yes, they actually called it that) to innovations with augmented and virtual reality platforms, they’ve showed their hand for the next year.

But there was something else featured which should concern you more than their upcoming in-home speaker: Payments. After years of requests, Apple has added peer-to-peer payments to ApplePay. Specially, within Messages. Come the release of iOS 11 in the fall, you’ll be able to send or receive money while in a message conversation with anyone. It will use your credit and debit cards linked to your ApplePay account. Of course, these are yours, right? Remember how important it is to get your cards top of wallet, both in the back pocket and digitally!

This new world of direct payments can be an enormous opportunity for your credit union. Think of all the times people share small cash payments. A few dollars for lunch, a bit more for gas, or any number of possibilities. Position your digital card properly and your members can be earning rewards for those, as well as reaping you interchange income (Note: This is an assumption, as the platform has yet to launch.). Regardless of how much you make when members use your card, being the one they use is essential.

Of course, there is also a threat. What if a person doesn’t have (or want to use) a debit/credit card? Well, there will now be an ApplePay Cash account. That’s right, ladies and gentlemen, Apple just became the face of your cards (and institution)! Careful, or it could start to steal your members as well. My suggestion? Work with it. Encourage members of all ages and financial situations to use it for seamless payments to and from family, friends, even businesses (maybe they can’t qualify for an account with free bill pay?).  Convenient for your member, profitable (and sticky) for you.

Technology can seem scary for embedded industries. Instead of ignoring it (remember how Siri can now handle bill payments?) and hoping doom doesn’t befall your world, brainstorm how you can lead alongside.

It’s always about best serving your members.

Image credit: https://philoforchange.files.wordpress.com/2013/07/mon1.jpg

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