Each individual identity has various dimensions. This is especially true online, where every account—whether Amazon or online banking—requires a siloed identity, leading to a seemingly never-ending list of usernames and passwords. A recent McAfee World Password Study polled 3,000 people worldwide and found that, on average, each person had 23 online accounts that required a password. While that’s a big number, what is most surprising is that, on average, only 13 unique passwords were used for those same accounts—a hacker’s delight.
The 2019 Credit Union Innovation Playbook’s Trust but Verify edition, a collaboration between PYMNTS and PSCU, collected data from 3,813 consumers, 102 credit union executives and 49 Fintech executives. Among important findings was that only 67 percent of credit union members trust their financial institutions with data security. This figure should, and can, be higher.
The severity and frequency of data breaches, such as the Equifax breach, which exposed the personal data of more than 143 million customers, are acting as wakeup call to consumers nationwide. Credit union members have also taken notice of this trend and what it means about their financial relationships. The recent Credit Union Innovation Playbook survey found that 42 percent of credit union members want their financial institutions to prioritize anti-fraud innovation.
Members want their credit unions to stay one step ahead of fraudsters by instituting safeguards to protect them. However, members are also growing fatigued by the cumbersome number of usernames and passwords they use daily. Credit union executives, to varying degrees, are aware of this pain point and trying to find new and innovative ways to address it. The Credit Union Innovation Playbook survey, for example, found that 44 percent of credit unions partner with Fintechs to enhance data and fraud protection.
Credit unions have the opportunity to act as trust anchors for their members’ identities. Each member should have a self-sovereign identity, giving members complete ownership and control over their digital identity. Whether banking via the branch, call center, website or mobile, self-sovereign identities, such as MyCUID, provides credit union members with a lifetime portable digital identity that does not depend on any central authority and can never be taken away.
With MyCUID, which leverages biometric and smart phone technologies, participating credit unions can be a part of a game changing moment—a global digital identity ecosystem designed specifically for credit unions and its members.