Credit Union Geek

Marketing, Strategy, and The Force by Joe Winn

Tag: data security

Apple Reinvents (Improves?) the Credit Card

Today, Apple held their seasonal keynote event, to highlight new services in a range of categories. You may get a kick out of their Apple TV+ lineup. Maybe you’re stoked about reading all your magazines on your iPhone with Apple News+.

But you’re here for Apple Pay improvements. We are talking about the banking world, right?

What is Apple Card?

In the most simple terms, Apple introduced a credit card. They’re calling it Apple Card. (PS – They partnered with Goldman Sachs. Remember talking about that?)

It’s a “mobile-first” card, in that you do most of your spending, tracking, and reward redemptions all within the app.

The entire platform lives within the native Wallet app in your iPhone. No more downloading a banking app just to pay the credit card bill.

Apple Card - Physical
Titanium. Seriously. (And no numbers to get stolen!)

You can track spending by category, merchant, and even view trends. Payments are simplified, with realtime interest calculations based on what you choose to pay. And rewards deposit daily (they’re calling it Daily Cash) into your Apple Cash account (we’ve spoken about this before).

And the physical card is shiny! (It’s made out of titanium!)

Fabulous metal aside, you care about what the card offers. And is it a threat to your institution?

Spoiler: Yes. Probably.

The Apple Strategy

With more than a billion active devices, any time Apple does something, it matters. Few companies have the ability to affect the behaviors of so many so quickly. I’m not even suggesting you try.

What they did with Apple Card is look at all the pain points within the credit card realm:

  • Applying
  • Tracking spending
  • Paying
  • Redeeming (and understanding) rewards
  • Understanding interest costs (and how to minimize)
  • Getting questions answered

Then they added a bit of Apple touch to align the offering with their mission:

  • Privacy
  • Security
  • Beauty (it’s subjective, sure, but the card is so pretty!)

The result is a mobile-first, simplified, and streamlined vision of a credit card.

Here’s how they addressed those pain points:

  • Application: Tap to apply. Done. It automatically issues the digital version, adds it to your Wallet, and that’s it. The physical copy gets mailed.
  • Tracking spending: The app color-codes spending categories, gives merchants their real logos, and uses machine learning (AI) to decrypt those obscure “IC SPEND A-MERCH 14312” charges (it was the Greek food truck, by the way). It will even show it on a map and link to it on Yelp!
  • Paying/Interest: Graphical wheel that you slide your finger around to see your payments change, along with the interest accrued. Financial education with a swipe.
  • Rewards: 3% at Apple, 2% using the digital version, 1% with physical card. Redeems automatically as cash every day (with notation) into your Apple Pay Cash card. Which you can spend at merchants, online, send to friends/family, and more.
  • Privacy: No merchant gets any details about you on any purchase.
  • Security: Every payment uses a one-time code (just like any other ApplePay transaction). Suspicious transactions appear as notifications (and can be approved or denied with a tap). A new card is sent out and no changes needed.
  • Support: Using Business Chat for iMessage, customers can simply text their question to the service. A person answers and helps them out. Through their normal messaging app.
  • Fees: They don’t have them. Any. At all.

Can Your Credit Union Compete?

That’s a great question. On the surface, no. You cannot create such a streamlined system with the tight integration between bank and provider.

However, all is not lost!

I’ve made a point to talk about partnering in many previous posts. It’s just as valuable (if not more so) today!

Your institution is good at the money part. You might also be great in the relationship area.

But, let’s be honest. You’re not awesome with the technology. It’s a constant effort to keep up with evolving expectations as it is, right?

Two People Talking Over Coffee

That’s why you need to partner with companies who specialize in these things. My last post talked about making member communication simple. That’s one of their pain points!

Another post addressed the issues with boring transaction sheets. Am I spending too much on hummus? (The answer to this is, of course, never!)

And the most cynical/sarcastic/actually realistic answer to this question:

Sure, because it only works for members with an iPhone. Look at all those Android users you can still attract!

Mobile First = Simple First

White iPhone in Hand

You’ll hear a lot of talk about how “mobile first” design is essential. That making services for a computer is immediately alienating your target audience. I’m betting the firms which sell you these platforms will be climbing over each other to talk about how their stuff is so mobile first ready.

It’s not wrong. There’s a lot of value to making sure your offering is accessible from where people are.

However, I want to be clear:

Mobile First doesn’t just mean you need to make sure it works on phones.

Mobile First means that your driving strategy is:

How can we make something so simple, so intuitive, so obvious that members can do what they want in a few seconds?

Apple stepped back and saw many of the traditional challenges in credit cards. Then, they built a system (with appropriate partners) to overcome these “yucky spots”.

Filament Bulb Hanging

It’s about looking at what the real problems are, and how you can address them.

If Edison had only tried to make a brighter candle, he would never have invented the light bulb.

To help illuminate (pun actually not intended, but enjoyed) your best path forward, I encourage you to Subscribe to my blog.

Image credit: Apple

Data Security: Car Edition. Really.

Originally published on CUInsight.com

When you hear “data security”, what comes to mind? Your laptop? Phone? Internet of Things “smart” oven? (I’d hate to let a hacker know how badly I burnt that casserole)

Anything else? How about your computer on wheels?

Modern cars are rolling supercomputers. They have dozens of systems collecting unique data to make your driving experience safer, more enjoyable, and sometimes more distracting. For example, the traction control computer collects information on road conditions hundreds of times a second. However, it’s probably not a source of identity theft (though what could be learned from its records would surprise you). Nor is the network of proximity sensors to help you navigate tight areas.

Your car does contain a number of personalized systems. Let’s look at the big ones:

GPS: Your car knows where it is at all times, where it has been, the paths you take, and even the speed at which those drives were made.

Bluetooth: When you pair your phone, it does more than share a 4-digit code. To automatically reconnect, the car remembers your phone’s unique ID. This isn’t a huge privacy issue on its own, but today’s cars save far more. To make dialing easier, a lot of systems import your contacts and synchronize your text messages. No big deal, just your entire phone book and call/text history.

HomeLink: Do you have buttons on your mirror or visor? Do they open your gate/garage? Then you have HomeLink. These can even support turning on/off lights, though new smart integrations have made that a bit redundant. Combined with the GPS history, this is the biggest privacy risk in your car. The former tells anyone in the car where your house is located. The latter Opens. Your. Home.

Those are the big three. Others vary by manufacturer and features. Things like a custom entry code (many Ford vehicles still use this feature…do not choose a birthday!) are seen on occasion. App integration is becoming more common, making your phone an advanced car key.

So, what of all these features? I’m a huge fan of integrations which make sense, and I use them often. However, I also know there is a level of security necessary. To add a small degree, I never program my actual home address into the GPS. The “point” is around the entrance to my community, not in my driveway. Do you really need those last 4 turns? Granted, someone could just find my address on the registration, but I’m hoping a potential thief is just too dumb to consider such an option. Why make it easy? Note: My garage opener doesn’t reach from the home “point”.

It’s good to know what these features can reveal while you have the car, but what about when you sell it?  Given the privacy/security risk inherent, I find it almost criminal that an easy “I’m selling my car, delete everything” button is not available in every car. For mine, I’ve had to do the following:

  1. Delete my phone pairing from the car.
  2. Remove the “Home” location in my GPS.
  3. Remove all recent waypoints in the GPS.
  4. Reset the HomeLink buttons.
  5. Cancel/transfer satellite radio service (technically, with an active Radio ID, one can use a phishing strategy to get my personal information from SiriusXM)

You’re right, there is no direct credit union guidance in this post. However, given my recent experience in buying a new car, I felt it necessary enough to share. Be honest, how many cars do you think are traded-in with the prior owner’s home address and garage code?

Help protect your staff and membership by sharing this with everyone! (And along with every booked loan)

Image credit: That’s me, while owning two cars.

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