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Trellance opens new office in India to support Talent Services Division

June 22, 2022 .– Trellance, which describes itself as ananalytics and talent services CUSO, said it has opened a new office in Bangalore, India.

Tom Davis

Tom Davis

The 30,000-square foot space is expected to house 225 new employees within the next 12-18 months, who will support the company’s recently launched Talent Services division, Trellance said.

This is the second office for Trellance in India. Its first India office in Ahmedabad is located in the western state of Gujarat and has approximately 65 employees. Trellance reported it is currently building another office in the city that will hold up to 180 employees.

“Staff in Bangalore will possess a broad spectrum of the industry’s in-demand, high tech skills such as cloud computing, programming, data engineering, data analyst, data scientist, core system developers, business intelligence, visual dashboarding, and system infrastructure,” according to Trellance.

New ‘Concept’

The company said that as part of the Bangalore office it is launching a new concept called “MyTalentCenter.”

“Through MyTalentCenter, a credit union can establish offshore resources in a highly-managed environment,” Trellance stated, adding it “replicates a credit union’s tailored infrastructure and highly secure protocols, while providing a separate physical place for dedicated talent resources with 24/7 monitoring.”

MyTalentCenter services are flexible and scalable, the company said.

Remaining ‘Competitive’

“We are efficiently bringing the credit union industry the advanced technology and talent it needs to remain competitive in financial services,” said Trellance President and CEO Tom Davis, who was in Bangalore for the ribbon-cutting. “We’re joining hundreds of U.S. companies that have a strategic presence in Bangalore to leverage its rich information technology resources for the benefit of our credit union clients.”

Paresh Shah, Trellance’s offshore delivery officer and India managing director, will oversee Trellance operations in India. Shah spent 16 years working in the U.S. telecom industry, and has spent the past 17 years in various Indian cities, including Bangalore, helping U.S. companies establish an offshore presence, Trellance said.

‘Significant Cost Efficiencies’

“India has a large population of highly-educated, English-speaking tech workers who are well-equipped for the global business world,” Shah said. “There is a significant cost efficiency advantage that allows credit unions to leverage three to four times more resources in U.S. dollars, which is very tough to replicate.”

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PSCU Payments Index – June 2022 Edition

PSCU

June 16, 2022 – Today, PSCU – the nation’s premier payments credit union service organization (CUSO) – published the May edition of the PSCU Payments Indexthe goal of which is to provide information and insights to help financial institutions make informed, strategic decisions on the road ahead.

This month’s report finds continued strong consumer purchasing activity amidst ongoing inflationary pressures, while our Deep Dive highlights consumer payment trends during the rapid rise of inflation. We take a look into contributing factors of spending growth over the past 17 months, in which the rate of inflation has risen from 1.4% to 8.6%.

In the Labor Department’s June 10 update, the Consumer Price Index (CPI) increased 1.0% during the month of May, bringing the 12-month rate of inflation to 8.6% – the highest level in more than 40 years. Top growth sectors included Shelter, Gasoline and Food. The Bureau of Labor Statistics (BLS) reported the May 2022 unemployment rate was again unchanged from the prior two months at 3.6% as more than 400,000 jobs have been added to the economy for each of the past 12 months. While this continued combination of strong job growth and low unemployment will likely fuel further consumer spending, inflationary pressures are driving lower real average hourly earnings and are influencing consumer card preference (credit versus debit), as well as sector activity. In our May results, credit card purchases were up 15% over 2021, while debit card purchases were up 6%.

“Overall consumer spending growth remained strong throughout May 2022, with the Gasoline sector experiencing the top growth rates in both credit and debit as fuel prices remain elevated,” said Brian Caldarelli, EVP and chief financial officer at PSCU. “The Consumer Price Index increased this month as we continue to face the highest level of inflation in more than 40 years. While the Federal Reserve announced another rate increase this week, a pause in the series of aggressive rate hikes is unlikely until inflation returns to an acceptable level. In this month’s Deep Dive, we explore the evolution of consumer behavior and spending growth as inflation has steadily surged over the past 17 months.”

A sampling of key takeaways from the June report includes:

  • The Consumer Price Index (CPI-U) increased on an annual basis to 8.6% in May, which was a 1.0% increase from April – and the highest level of inflation since 1981. The Fed increased interest rates by 75 basis points on June 15, its largest rate hike since 1994.
  • Consumer spending on cards continues to be strong, with credit purchases up 15% and debit purchases up 6% year over year. Gasoline posted top growth rates for all sectors in both credit and debit purchases in May and will continue to grow in June as the U.S. average price has surpassed $5 per gallon. Travel and Entertainment were second and third, respectively, for both credit and debit purchases in May.
  • Consumer data indexed to January 2021 (when inflation was 1.4%) highlights the trend of greater growth in credit purchases (over debit) beginning in May 2021 and continuing through May 2022. Influenced by multiple criteria including pent-up demand in Travel and Entertainment, countered by cooling of purchases in the Goods sector, strong activity at Restaurants and high inflation fueled by the energy sector, the trend is expected to continue – and even widen – with waning consumer liquidity.
  • The average credit card balance for May 2022 was $2,724, up 2.9% (or $76) year over year. May marked the third consecutive month in which year-over-year growth was over 2%. The credit card delinquency rate for May was 1.43%, 27 basis points lower than pre-pandemic May 2019 levels.

The full report is available for download here or can be shared as a PDF upon request. Additionally, feel free to subscribe here to receive updates when the PSCU Payments Index is published each month.

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An Ounce of Fraud Prevention Goes a Long Way

Co-Op Solutions

Emboldened and sophisticated fraudsters are driving an increase in card fraud losses. Financial institutions are taking more aggressive, costly measures to combat it, but not all strategies are equally effective. However, new approaches that blend cutting-edge technology with the use of human consultants are proving to be more effective at preventing fraud while preserving the member experience for credit unions.

Global card fraud losses have tripled in the past decade and are expected to total $408 billion over the next 10 years. The United States is at the center of the crisis; despite accounting for just 22% of worldwide card transaction volume in 2020, U.S. issuers were hit with nearly 36% of global card fraud losses in 2020.

Making matters worse, over a third of surveyed industry fraud executives say that well-organized criminal rings are committing up to three-quarters of such attacks instead of “lone wolf” fraudsters.

A Multi-Layered Approach to Reducing Card Fraud

Credit unions and other issuers face several challenges as they attempt to address the rising tide of card fraud. As fraud losses increase, they lead to rising credit union operational costs—cutting into payment revenue margins and putting pressure on the dividends credit unions return to their members.

Yet, the existing industry-standard fraud prevention methods aren’t keeping up with the times—or with an increasingly sophisticated and organized breed of criminals – and are either too severe or not doing an effective job of catching individual instances of fraud, or worse, both.

With threats coming from all corners of the evolving payments landscape, it’s easy to see why no single solution can safeguard credit unions and their members while protecting member relationships. Yet integrating multiple solutions from multiple providers presents its own set of security and member-experience risks. Co-op has invested in developing a single hub of fraud detection and prevention solutions bolstered by decades of human expertise.

According to Nicole Reyes, Director, Co-op Solutions Fraud Prevention Services, this multi-layered approach is the key to effective fraud prevention. “Fraud is ever-evolving, so we must respond with agility,” Reyes says. “Co-op’s Fraud Prevention & Solutions Consultants are an extension of a credit union’s fraud team, which maintains its subject matter expertise in the distinction between valid and fraudulent spend patterns. Our consultants then collaborate with the credit union fraud team to tailor custom fraud rules. This ensures we are meeting the distinctive needs of each credit union and its membership.”

One important tool of this approach is Co-op Cooper Fraud Score—a machine learning-enabled solution for recognizing and stopping fraud in real time. Cooper Fraud Score also includes reason codes alongside the score to provide context on why a transaction scored a certain way which can provide insights on fraud trends and help when servicing member inquiries on declined transactions.

Cooper Fraud Score is a dynamic, integrated, real-time machine learning score that empowers credit unions to react more quickly to fraud trends while maintaining the highest levels of service that members expect. Importantly, the solution reduces false-positive ratios, which leads to fewer in-person and online declines for legitimate member purchases. Co-op’s fraud team monitors performance and data in real-time on behalf of credit union clients to put new rules in place more quickly. Continually leveraging insights over time enables bi-annual model updates, something that is highly unique within today’s scoring industry.

Beating Fraudsters at their Own Game: Early Success

Co-op recently ran a trial of Cooper Fraud Score, and the results were very positive. The goal was to test its effectiveness as a new real-time decisioning element in production. Cooper Fraud Score was particularly successful in detecting low-dollar amount fraud, a common tactic of fraud rings trying to capture quick wins just below the thresholds of traditional fraud prevention methods. The trial also monitored how Cooper Fraud Score performed in detecting increased transaction velocity and massive BIN attacks, which are other commonly used fraud schemes.

Las Vegas-based WestStar Credit Union participated as a beta for Cooper Fraud Score. “Solving the problem of fraud is as much about meeting member expectations as it is about maintaining a healthy income statement,” said WestStar CEO Rick Schmidt. “It is a massive frustration when a member calls up and asks how we missed an obvious fraud, and we have no good answer for them. Bad guys are really creative. You’re never going to catch it all, and that’s not the expectation, but we should be able to catch the low-hanging fruit. Throughout the beta experience, we saw that Cooper Fraud Score is smarter about preventing that kind of fraud.”

In the trial, Cooper Fraud Score demonstrated an 11% lift in the credit union’s ability to detect instances of fraud, resulting in a reduction of $1.3 million in potential fraud losses.

How Cooper Fraud Score Works

Cooper Fraud Score is designed to work in concert with existing scoring and fraud strategies and in a series of steps:

  1. Establish fraud rules: Co-op’s Fraud Prevention & Solutions Consultants work with the individual credit union to establish initial transaction approval rules based on the credit union’s risk tolerance, cardholder base characteristics, existing fraud patterns, and other factors.
  2. Real-time scoring: Credit and debit transactions are scored in real time, right in the data stream, which allows credit unions to take quick, decisive action on suspicious transaction activity and eliminate fraud losses before they occur.
  3. Fraud detection: Leveraging existing fraud alert and case management tools, suspicious transactions that meet established fraud rules are declined immediately, and a reason code is provided.
  4. Continuous learning: Because Cooper Fraud Score is built on a machine learning-enabled continuous feedback loop, the model can identify anomalies in behavior and react to evolving fraud trends. As transaction decisions and case outcomes are fed back into the model, performance improves over time.
  5. Reporting: Coming soon, new dashboards and current fraud reports will provide high-level and detailed views of transactions scored by Cooper Fraud Score, helping management to identify recurring trends and take further preventative action steps.

“We are excited about Cooper Fraud Score performance in its initial release as a new tool to help prevent fraud in real-time as well as positively impact the member experience,” said Patrice Alexander-Lee, Product Management Director for the Protect line, Co-op Solutions.

As credit unions seek new and better ways to address the ongoing challenge of card fraud and keep up with aggressive new fraud schemes, sophisticated solutions like Cooper Fraud Score will need to be a vital piece of the puzzle. Built on a modern technology stack and using a powerful continuous-learning predictive algorithmic approach to fraud prevention and detection, Cooper Fraud Score is the only unique supervised machine learning model focused on credit unions.

To learn more about how Cooper Fraud Score can help you prevent fraud before it happens and minimize losses, all while continuing to provide outstanding member service, reach out to your Co-op Fraud Prevention Consultant or contact us at 800.782.9042 or solutions@coop.org.

Fraud Prevention White Paper

The original article An Ounce of Fraud Prevention Goes a Long Way can be found on Insight Vault.

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Supercharging Credit Card Account Origination

PSCU

By: Scott P. Young, Vice President, Innovation and Design, PSCU

Consumer expectations are rapidly changing to reflect the latest technological and cultural shifts, and it is essential for credit unions to meet members where they are today in order to compete for tomorrow. Members are becoming increasingly accustomed to immediacy – whether that comes in the form of Amazon same-day or next-day shipping, Netflix on-demand streaming or Uber Eats food delivery – so it’s no surprise that members are beginning to expect immediacy from their financial partners as well.

In today’s digital-first world, any kind of a waiting period, even several days for the approval of a new credit card and several more for the delivery of a plastic, can be too long of a wait for many members. Enabling business processes to take place both digitally and instantaneously can help alleviate unnecessary friction while also meeting – and, ideally, exceeding – members’ expectations. This especially rings true surrounding the often lengthy process for account opening and credit card application approval.

There are three important areas to focus your efforts on when supercharging your credit card account origination strategy.

  1. Convenience
    Offering digital issuance of the credit card itself, once approved, is critical to meet the growing expectations of today’s consumer. Card credentials should be immediately generated and provisioned to a digital wallet, providing members with the ability to make purchases online or via mobile wallets right away. A physical card can follow in the mail soon after. The objective is immediate usage of the account. If consumers don’t find this level of immediacy and convenience with your credit union’s credit card account origination process, they may look at competitors’ solutions. 
  2. Personalization
    Typical credit card applications require consumers to manually enter an average of 30 fields of information. In today’s world, having to answer or input that much information is a deterrent that can lead to abandonment of the application and seeking to find a more convenient solution. Utilize technology to optimize the application experience with personalization – and significantly reduce the number of required fields with the pre-population of member data. Additionally, consider including the ability for consumers who are not yet members to apply for credit union membership as a part of the credit card application process.
  3. SecurityMany fintechs and credit union service organizations (CUSOs) have advanced identity verification technology, allowing members to quickly and easily apply for credit cards from anywhere and be approved instantly. This proprietary technology can simplify the security process for many applicants and reduce the need to participate in additional verification steps like uploading a photo of their driver’s license or passport. Too many unnecessary steps can create friction – causing credit card applications to be abandoned before completion.

Leveraging technology to create a more convenient, personalized and secure credit card origination experience might be too much to do on your own. Consider partnering with a fintech or a CUSO to help meet your goal. For example, PSCU has just partnered with Amount, a fintech focused on next-generation digital account opening, lending and buy-now, pay-later (BNPL) solutions for some of today’s larger financial institutions. With this new partnership, PSCU and Amount will soon provide credit unions with digital account origination technology through an innovative platform that delivers the digital experience many members are seeking today.

Easy is the new loyalty. Make the experience of a credit card application and approval so simple that it is too good for members to pass up. If you demonstrate that the new account solution offered by your credit union is convenient, with immediate access to spend, your members will be more likely to look to you to meet other financial needs as well.

Scott P. Young oversees the Innovation, Design and Integration Teams at PSCU. With over twenty-five years of experience in payments, Scott started his career at First Data in Omaha before moving to Pentagon Federal Credit Union (PenFed) and more recently, Bank-Fund Staff Federal Credit Union, before joining PSCU in late 2019. A passionate advocate for the credit union movement, Scott is also a leader in Diversity, Equity and Inclusion (DEI) efforts at PSCU and across the industry. Scott is a graduate of the University of Nebraska.

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How to unlock the power of data while protecting it

mastercard logo
BY TANAY DAVIS

Data is more valuable than ever — which means, more than ever, it needs to be protected.

From the rise of open banking, which enables people to share their financial data to access more choice and better experiences, to the growing desire of companies across industries to harness data to make smarter decisions and create new revenue streams, data security is key.

In the latest episode of “What’s Next In,” Mastercard’s podcast that informally explores technology, innovation and ideas, host Vicki Hyman discusses the evolution of privacy-enhancing technologies with Bob Schukai, Mastercard’s executive vice president for Technology Development, Global Open Banking, and Ellison Anne Williams, the founder and CEO of Enveil, the startup that uses homomorphic encryption to secure data while it’s being used to allow companies to innovate while protecting and respecting individual privacy.

“Privacy-enhancing technologies enable a decentralized form of data usage, collaboration and monetization to be possible,” Williams says. “These technologies leave the data at the point of origination and enable usage of that data in a secure and private way without having to move or replicate it.”

Mastercard’s privacy by design principles ensure that privacy safeguards are built into the design and creation of everything the company does, Schukai says. “We believe that your personal information is just that, it’s personal and we try to take great care to ensure it stays that way.”

To hear more from Schukai and Williams, subscribe to “What’s Next In” on Apple Podcasts or stream it directly in the player above.

TANAY DAVIS, ASSOCIATE SPECIALIST, GLOBAL COMMUNICATIONS