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
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.
There are many questions in the financial industry about the adoption of blockchain technology. A top query is focused on regulatory compliance concerns related to Know Your Customer (KYC), the process of verifying the identity of a consumer as well as any potential risks of illegal intentions toward the business relationship.
By definition, a “smart contract” is a computer protocol intended to digitally facilitate, verify or enforce the negotiation or performance of a contract. This digital banking strategy allows for seamless authentication transactions without third parties.
Once a banking contract is initiated and executed, the contract most often sits on the shelf, which is usually a good thing because it generally means the contract is without issues. But there are other critical components to the contract, including performance factors and maintenance. Prior to smart contracts, which have management and alert protocols built-in, credit unions faced the challenge of determining how best to manage these contracts to ensure that the vendors were adhering to contractual terms.
Topics: Smart Contracts