When it comes to relationship building, credit unions are known as leaders in the financial services industry; however, many members are frustrated with antiquated methods to confirm their identity. Whether it’s a personal identification number (PIN) or a series of personal questions, the financial services industry has long taken cumbersome and time-consuming measures to verify identity.
Topics: Digital Experience
When executives in the financial services industry enter into a discussion about blockchain technology the first question generally asked is: “Why should I use blockchain technology?” This question is quickly followed by, “Why should I trust blockchain technology?”
Executives and businesses succeed when they ask better questions.
Perhaps, the better question is “What can the industry use this technology for, now that blockchain is becoming a ‘common’ technology?”. Currently the most effective use of blockchain relates to areas where a group needs to be able to trust something – but can’t agree on a centralized place they can all trust.
In general, the credit union industry has an interesting relationship with blockchain. A year ago, industry leaders in distributed ledger technology were answering “is this bitcoin?” questions. Now, there is a much broader general understanding of blockchain technology. In particular, certain innovative chief technology officers (CTOs) and CIOs who do “get it” no longer mention “blockchain” early in our discussions. Rather, and more interestingly, they are talking about a digital banking strategy that may include blockchain technology. At this point, a CTO looking for blockchain technology is like a hammer looking for a nail.
In an earlier blog post, I wrote on the various dimensions of identity, such as the countless siloed identities and related usernames and passwords. But there is also a distinction to be made between the dimensions of identity and the different types of identity. The latter is generally defined in three ways: the aforementioned “siloed” identity, the third party or “federated” identity and the self-sovereign identity (SSI).
Topics: Digital Identity
There was a point in time when the concept of shared branching raised some eyebrows, but today the methodology is accepted, widely used and effective. And there is an important connection between the shared branching model and Know Your Customer (KYC) that is being overlooked in the credit union industry. To this end, the member experience could be better served if credit unions joined the same KYC network and provided seamless authentication to membership on a global scale.