The NAFCU Journal March-April 2020 - 24

''

FedNow should benefit credit unions by
leveling the playing field. The goal is to enable
all U.S. financial institutions to offer faster
payment services.

''

- BILL THOMAS, FIRST VICE PRESIDENT OF MEMBER OPERATIONS, UNITED NATIONS
FEDERAL CREDIT UNION

technologies that make payments
easy and convenient, as has been seen
with the plethora of services adopted
through online banking. The true revolution, Morris says, was the widespread
adoption of smartphones a decade ago. 
But new features might require working
closely with members to educate them
on the products. MSUFCU encourages
its members to use mobile wallets and
to make mobile payments, and they've
created YouTube videos explaining how
mobile wallets work. Education, Dolan
says, is key.
"It's important that members understand
how to use the payment options available,"
she says. "Provide resources about how
to use these services in the same way you
would describe how to choose between
different loan or checking account options.
Talk about options that fit best when
interacting with members face to face, over

the phone or through digital channels, and
provide the information online that members can access independently."

Security and Accessibility Issues

While the new technologies offer a lot of
promise, there are concerns that need to
be addressed on the management side of
conducting business, as well as with customers. Morris notes that NAFCU's chief
concern relates to accessibility, as well as
the security of retail operators.
"We have made a point of emphasizing
that the FedNow Service must be fair to
credit unions in terms of pricing and
accessibility," he says.
Fraud is a concern, but it shouldn't
derail future payment innovation,
Morris says. Conversely, addressing
the root cause of fraud shouldn't entail
slowing down payments. Instead,
Morris says the focus should be on

Keeping Your Finger on the
Pulse of New Payment Tech
S
ara Dolan, CFO of Michigan State University Federal Credit Union, offers
these tips for credit unions:

1.	 Be aware of what's currently available as well as what's in development in payment systems and technology.
2.	 Talk to your core provider about when and how these options will be available to
integrate into your systems.
3.	 Listen for member feedback and interest in using these options.
4.	 Look at transaction data to see whether members are already using the options
available today, and if so, how much and in what ways.
5.	 Consider how faster payments will impact member expectations for service and
how that could impact future plans.

24

the data security practices of merchants,
"where yearly breaches of considerable
magnitude have eroded the safety and
security of consumers' personal information." Real-time payments can be
made secure by adopting controls and
educating consumers about how the
transactions work, he adds.
Dolan and Thomas point out that customers will be reluctant to use a new tool
if they are not assured that the transactions are safe.
"Security and global functionality are the
two biggest concerns for us at UNFCU,"
Thomas says. "We realize that any new
payment offering has to be secure in
order for members to use it."
Many of the current payments solutions
relate to the U.S. market, but UNFCU's
concerns are global, he explains.
"Our members have an expectation that it
shouldn't matter if they are paying someone in Utah or Uganda. The payment
experience should be the same," Thomas
says. "Members need to have peace of
mind that any payment they make is
secure and that the payment method
cannot be easily compromised."
Security issues, however, need to be balanced with making sure systems are easy
to use, and these newer technologies are
increasingly more convenient.
"The payments area is evolving rapidly,"
Thomas says. "We are very excited about
the new solutions we introduced [last
year], especially the contactless debit
and credit cards. Like digital wallets,
these are more secure and convenient
payment methods." They're also looking
to expand their mobile money payments in 2020. 
"Regardless of the new technologies," he
says, "offering our members services that
are secure, fast and convenient remains
our priority."
Thomas A. Barstow is a reporter and editor
based in Pennsylvania. He also teaches
journalism at the college level.
THE NAFCU JOURNAL  MARCH-APRIL 2020



The NAFCU Journal March-April 2020

Table of Contents for the Digital Edition of The NAFCU Journal March-April 2020

The NAFCU Journal March-April 2020 - Cover1
The NAFCU Journal March-April 2020 - Cover2
The NAFCU Journal March-April 2020 - 1
The NAFCU Journal March-April 2020 - 2
The NAFCU Journal March-April 2020 - 3
The NAFCU Journal March-April 2020 - 4
The NAFCU Journal March-April 2020 - 5
The NAFCU Journal March-April 2020 - 6
The NAFCU Journal March-April 2020 - 7
The NAFCU Journal March-April 2020 - 8
The NAFCU Journal March-April 2020 - 9
The NAFCU Journal March-April 2020 - 10
The NAFCU Journal March-April 2020 - 11
The NAFCU Journal March-April 2020 - 12
The NAFCU Journal March-April 2020 - 13
The NAFCU Journal March-April 2020 - 14
The NAFCU Journal March-April 2020 - 15
The NAFCU Journal March-April 2020 - 16
The NAFCU Journal March-April 2020 - 17
The NAFCU Journal March-April 2020 - 18
The NAFCU Journal March-April 2020 - 19
The NAFCU Journal March-April 2020 - 20
The NAFCU Journal March-April 2020 - 21
The NAFCU Journal March-April 2020 - 22
The NAFCU Journal March-April 2020 - 23
The NAFCU Journal March-April 2020 - 24
The NAFCU Journal March-April 2020 - 25
The NAFCU Journal March-April 2020 - 26
The NAFCU Journal March-April 2020 - 27
The NAFCU Journal March-April 2020 - 28
The NAFCU Journal March-April 2020 - 29
The NAFCU Journal March-April 2020 - 30
The NAFCU Journal March-April 2020 - 31
The NAFCU Journal March-April 2020 - 32
The NAFCU Journal March-April 2020 - 33
The NAFCU Journal March-April 2020 - 34
The NAFCU Journal March-April 2020 - 35
The NAFCU Journal March-April 2020 - 36
The NAFCU Journal March-April 2020 - 37
The NAFCU Journal March-April 2020 - 38
The NAFCU Journal March-April 2020 - 39
The NAFCU Journal March-April 2020 - 40
The NAFCU Journal March-April 2020 - Cover3
The NAFCU Journal March-April 2020 - Cover4
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_NovemberDecember2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_SeptOct2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_JulAug2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_MayJun2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_MarApr2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_JanFeb2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_NovDec2019
https://www.nxtbook.com/ygsreprints/NAFCU/G109023_nafcu_septoct2019
https://www.nxtbook.com/ygsreprints/NAFCU/G106941_nafcu_julaug2019
https://www.nxtbook.com/ygsreprints/NAFCU/G105388_nafcu_mayjun2019
https://www.nxtbook.com/ygsreprints/NAFCU/G103030_nafcu_marapr2019
https://www.nxtbook.com/ygsreprints/NAFCU/G88665_nafcu_janfeb2019
https://www.nxtbook.com/ygsreprints/NAFCU/G100235_nafcu_novdec2018
https://www.nxtbook.com/ygsreprints/NAFCU/G98517_nafcu_septoct2018
https://www.nxtbook.com/ygsreprints/NAFCU/G96479_nafcu_julaug2018
https://www.nxtbook.com/ygsreprints/NAFCU/G93390_nafcu_mayjune2018
https://www.nxtbook.com/ygsreprints/NAFCU/G90161_nafcu_marapr2018
https://www.nxtbook.com/ygsreprints/NAFCU/G88665_nafcu_janfeb2018
https://www.nxtbook.com/ygsreprints/NAFCU/G83806_nafcu_novdec2017
https://www.nxtbook.com/ygsreprints/NAFCU/G80296_nafcu_septoct2017
https://www.nxtbook.com/ygsreprints/NAFCU/G79086_nafcu_julyaugust2017
https://www.nxtbook.com/ygsreprints/NAFCU/G75911_nafcu_mayjune2017
https://www.nxtbook.com/ygsreprints/NAFCU/G73247_nafcu_marapr2017
https://www.nxtbook.com/ygsreprints/NAFCU/G71923_nafcu_janfeb2017
https://www.nxtbook.com/ygsreprints/NAFCU/G69249_nafcu_novdec2016
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_septoct2016
https://www.nxtbook.com/ygsreprints/NAFCU/g63853_nafcu_julaug2016
https://www.nxtbook.com/ygsreprints/NAFCU/g61005_nafcu_mayjun2016
https://www.nxtbook.com/ygsreprints/NAFCU/g58935_nafcu_marapr2016
https://www.nxtbook.com/ygsreprints/NAFCU/g56716_nafcu_janfeb2016
https://www.nxtbook.com/ygsreprints/NAFCU/g55605_nafcu_novdec2015
https://www.nxtbook.com/ygsreprints/NAFCU/g53582_nafcu_sepoct2015
https://www.nxtbook.com/ygsreprints/NAFCU/g52154_nafcu_july2015
https://www.nxtbook.com/ygsreprints/NAFCU/g50302_nafcu_mayjune2015
https://www.nxtbook.com/ygsreprints/NAFCU/g48554_nafcu_marapr2015
https://www.nxtbook.com/ygsreprints/NAFCU/g47118_nafcu_janfeb15
https://www.nxtbook.com/ygsreprints/NAFCU/g45886_nafcu_novdec2014
https://www.nxtbook.com/ygsreprints/NAFCU/g44155_nafcu_sepoct2014
https://www.nxtbook.com/ygsreprints/NAFCU/g42892_nafcu_julyaug2014
https://www.nxtbook.com/ygsreprints/NAFCU/g41296_nafcu_mayjun2014
https://www.nxtbook.com/ygsreprints/NAFCU/g39799_nafcu_marapr2014
https://www.nxtbook.com/ygsreprints/NAFCU/g38961_nafcu_janfeb2014
https://www.nxtbook.com/ygsreprints/NAFCU/g38041_nafcu_novdec2013
https://www.nxtbook.com/ygsreprints/NAFCU/g36539_nafcu_sepoct2013
https://www.nxtbook.com/ygsreprints/NAFCU/g34910_nafcu_julaug2013
https://www.nxtbookmedia.com