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What Jack Antonini is reading….

December of this year will mark 10 years as CEO of NACUSO. But did you know that prior to joining NACUSO Jack was CEO of USAA FSB, ran consumer banking at one of the top 5 banks in the USA, was Vice Chairman of one of the top 3 credit card businesses in the USA and helped build the largest ATM business in the world along with the largest surcharge-free ATM network (Allpoint)?

He knows a thing or two about payments and admits to being a bit of a nerd about it. Well COVID has definitely rocked the payments world in a big way. And since it’s a large part of our CU and CUSO network, this is what Jack’s reading this month.

To provide relevant updates on market performance, experts from PSCU’s Advisors Plus and Data & Analytics teams today released year-over-year weekly performance data trends. In this week’s installment, PSCU compares the 38th week of the year (the week ending September 20, 2020 compared to the week ending September 22, 2019).

New research shows prioritizing payments and leveraging daily touchpoints with members leads to growth. CO-OP and Filene published a report that shows how to gain a primary financial relationship with members.

A recovery in retail sales is underway amid COVID-19, but there are challenges ahead – Deloitte Insights, Economics Spotlight September 2020.

During the Pandemic, we have seen significant increases in fraud, as payments and banking moves to largely digital channels. Some of the interesting trends being reported since the Coronavirus outbreak began include:

  • 96% of attacks on financial institutions were sophisticated – designed to look like a legitimate member
  • Account creation attacks have increased drastically – fraudster creates real new account to use in their fraud schemes at a later time … Know your customer is very important in catching these fraud attempts
  • High-risk mobile traffic increased by 55% necessitating tools to improve member experience while safeguarding against high-risk activity
  • The average dollar value of a chargeback grew 124% — ensure your members are monitoring their accounts and report any suspected fraudulent activity in a timely manner, so you can chargeback to the merchant 

Mastercard working to eliminate the “mystery charge” on card statements, where members don’t recognize the charge due to the unrecognizable details provided. 27% of chargebacks start this way. Mastercard estimates that by 2021 costs will increase to $8.6 billion related to chargebacks and disputes in the U.S. alone. Unfortunately, these costs of handling disputes & chargebacks must be absorbed somewhere, and it’s frustrating and time consuming for both members, card issuing credit unions and their card processors. Mastercard and Ehoca, their fraud collaborative and dispute resolution technology are working to diminish the confusion and this costly and time-consuming chore. They are developing a system to place a merchant’s logo next to transactions in digital banking applications, making it obvious to a member where the transaction took place and it if is legitimate.

CDC encourages online holiday shopping to keep consumers safe. On Monday (Sept 28), the CDC released new guidelines discouraging the public from packing malls or standing in long lines because there’s a greater likelihood of contributing to the spread of the coronavirus. The CDC suggested shopping online rather than in person on Black Friday. Online retailers from Amazon to Target to Walmart and Best Buy are all starting to offer online deals in October, and Amazon’s Prime Day will be Oct 13-14.

Credit Unions look past FICO scores to unlock member credit.  The need to offer innovative credit solutions has never been greater, to help members during the pandemic. Credit unions often struggle to compete with the robust credit card loyalty programs that giant national banks can provide, but often have an edge on the annual percentage rates on cards, offering lower APRs than most banks. With airline miles cards having less appeal, as consumers have stayed at home and stopped traveling to avoid the coronavirus, now is a great time to reinforce the value of CU card programs. Contactless cards were popular prior to the pandemic and have soared in popularity since then. Members want high-quality contactless experiences, when shopping in-store, that don’t require touching a germ-filled keypad. Virtual card programs are also becoming popular, especially with larger credit unions (66.7% of CUs with more than $5 billion in assets planned to roll out virtual cards prior to the pandemic). PSCU offers the Credit Union Tracker, for updates on trends and changes in the industry. (Source: PYMTS.com 9-28-2020).