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TransUnion Launches AI-Powered Data Analytics Platform
Credit bureau TransUnion has unveiled a cloud-based AI-powered data and analytics platform for CUs. The OneTru platform connects separate data and analytic assets built for credit risk, marketing and fraud prevention and concentrates them in a single environment. Built on top of TransUnion’s hybrid-cloud infrastructure, OneTru taps into AI and machine learning technologies from Neustar.
Pioneer FCU Expands Partnership with Tyfone
Tyfone announced its long-time customer, Pioneer FCU ($746M and 50,000 members), is adding their nFinia Business Digital Banking solution; as well as its Skip-a-Pay, Quick Pay and FedNow Instant Payments Xchange (IPX) payments products.
DataVisor Unveils Its AI-Powered AML Compliance Solution
AI-powered fraud and risk platform DataVisor just launched its end-to-end anti-money laundering (AML) solution. Natively integrating with DataVisor’s fraud platform, the new offering helps enable a unified fraud and anti-money laundering (FRAML) strategy.
William Mills Agency Releases 2024 Bankers as Buyers Report
William Mills Agency, the largest independent public relations and marketing firm specializing in the financial industry, announced the release of its 21st annual Bankers as Buyers Report. This year’s report is comprised of 86 pages of a variety of research and commentary. The theme of this year’s report is “The Exploding Fintech Scenario, Invisible Technology and Actual Intelligence.”
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AI Drives Ethernet Switch Buying
IDC data shows a robust market for Ethernet switches thanks to growing AI workloads. "Ethernet switch vendors are embedding AI capabilities in software management platforms to improve operations. Connectivity in general, and Ethernet switching in particular, are playing an increasingly critical role in supporting the era of AI everywhere,” said an IDC spokesperson.
HPE, Pure Storage Unveil Enterprise Storage Products
Hewlett Packard Enterprise and Pure Storage each introduced new storage-related products and services targeted at high-performance workloads – which means AI. HPE expanded its HPE GreenLake for File Storage offering with the addition of a new high-density, all-flash storage array. Meanwhile, Pure Storage has updated its ActiveCluster upgrading technology for its Purity operating system; self-service autonomous upgrades to the operating environment will keep the different servers in sync with the latest OS upgrades. Pure has also updated and streamlined its ransomware anomaly-detection capabilities. In the event of an anomaly, Pure1 now recommends snapshots from which customers can restore their affected data, either locally or remotely, instead of having to review the snapshot catalog manually.
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Will Generative AI Kill KYC Authentication?
Generative AI can create fake documents and personal histories that fool common know-your-customer authentication practices. With the ability of generative artificial intelligence (AI) that use large language models (LLMs) to create highly persuasive document replicas, many security executives are rethinking how KYC should look in a generative AI world. Beyond quickly making false documents, some experts warn of AI-generated fake personal histories that could validate these AI-generated fake KYC documents. Bottom line: KYC security tools and processes need to adapt quickly.
Top 6 Passwordless Authentication Solutions for 2024
Passwordless authentication allows users to login to devices and applications without entering a password. Common passwordless authentication methods include FIDO2 biometrics like fingerprints and facial recognition, smart cards and mobile apps installed on a verified cell phone. Passwordless authentication is often easier for end-users than creating and remembering strong passwords, and it reduces the risk of a data breach caused by phishing and other password-based attacks. This article reviews the following solutions: 1) Keeper; 2) Okta; 3) Microsoft Entra ID; 4) Cisco Duo; 5) Ping Identity; and 6) Yubico.
AI Makes an Instant Impact at TruStone Financial
While many CUs are still feeling out their approach to AI, TruStone Financial CU ($5.0B, Plymouth, MN) is going full speed ahead. The cooperative just launched TruAssist, its new AI-powered knowledge base. TruAssist has smoothed communication across back-office and front-line teams while identifying gaps in the knowledge base and automating the information-updating process that support teams need to keep current. Documents that previously took up to two minutes to retrieve now take as little as 10 seconds, and in-branch wait times that previously took as long as 15 minutes have been reduced to less than three minutes, since staff are no longer waiting for instructions or information.
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What's the Regulation Roadmap Look like for ATMs in 2024?
When discussing regulations in the pipeline, one industry observer noted that there have been a deluge of bills coming out on the state side that impact ATMs, with the vast majority of them related to cryptocurrency. On the federal side with bills such as the Payment Choice Act and Safe Access to Cash Act, there has not been significant progress and the sponsors are seeking bipartisan support.
Protecting ATMs is crucial, but the actual task is easier said than done. The choice of the right safe for the right level of threat is one security layer that can be complemented with reinforced steel plates and extra locking mechanisms. Another way to improve the security of the cassettes is to neutralize the cash by equipping the cassettes with ink-staining solutions. Some ATMs can be equipped with built-in sensors that can detect cash traps and secure the cash if a trap is detected during a transaction. Some machines can also detect shutter drillings related to transaction reversal fraud attacks.
Cloud-based technology is crucial for many industries, and ATMs and kiosks are no exception. Remote cloud based hosting connects ATMs to a hosted virtual terminal manager that centralizes application processes and integration. Decision making in the cloud helps reduce storage and information processing requirements for the terminal and enables no-visit instant addition and updates of terminal functions. The goal is to "change rapidly without risk."
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Keynova' Group's semi-annual Mobile Banker Scorecard findings reveal a significant evolution of mobile payments, particularly in external, inter-bank and global payments and transactions aided by virtual assistants. The report looks at baseline payment services trends as well as money movement advances and smart virtual assistant implementations.
Cisco, Intel Expand Wi-Fi 7 Partnership
Cisco and Intel have expanded their partnership to focus on jointly developing Wi-Fi 7 technologies and strengthening interoperability between Cisco access points and Intel client devices. Cisco and Intel have worked together for many years to enhance wireless services, and now one of their big projects is WiFi 7. For example, The integration of Wi-Fi 7 technology into Intel’s AI PC platform promises improved network performance, reduced latency, and increased bandwidth.
Digital Wallets: Users Are Happier, but Adoption Still Lags Among Consumers and Merchants Alike
Satisfaction with digital wallets is on the rise, which is helping propel consumer adoption and usage, according to J.D. Power’s newly released 2024 Digital Wallet Satisfaction Study. Case in point: 48% of U.S. consumers say they have used a digital wallet in the past 90 days, a 12-point increase from 2023. Among consumers that have used a digital wallet to pay for a transaction in the past 90 days, 40% have used PayPal, 28% have used Apple Pay, 22% have used Venmo, and 19% have used Cash App Pay. What makes Apple Pay popular with frequent wallet users is that it scores well across the six criteria JD Power uses to measure customer satisfaction. Those criteria are ease of use, the ability to review transactions, account-management capabilities, security, merchant acceptance, and customer support.
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Zoom Compliance Manager Helps Organizations Fulfill Regulatory Requirements
Zoom announced Zoom Compliance Manager, an all-in-one offering that provides archiving, eDiscovery, legal hold, and information protection capabilities to help organizations fulfill regulatory requirements and mitigate organizational communications compliance risks across the Zoom platform. The solution provides compliance capabilities across the Zoom platform, including AI Companion, Meetings, Team Chat, Phone, Whiteboard, Rooms, Webinars, Events, and Contact Center. Zoom Compliance Manager is available as an add-on to Zoom customers with a paid plan.
Mitigating ‘Instant’ Fraud in Instant Payments
In addition to the Clearing Houses RTP (Real Time Payments) Network going live in 2017, and the Federal Reserve’s FedNow Service launching last year, instant payments are poised to further disrupt the payments and financial services landscape. Unfortunately, real-time fraud is an emerging threat that will grow as the use of faster payment methods gains momentum. Combating fraud risk requires real-time fraud scoring and a high level of automation, which this arfticle states is only achievable through advanced AI, with configurable rules and policies geared toward stopping fraudulent payments. The article goes on to look at various types of instant payment fraud schemes, along with approaches that FIs can use against them.
Ransomware Increases Urgency of Documented DR Plans
The author is convinced that the cloud offers the greatest flexibility for replicating data, and especially for provisioning temporary DR infrastructure. Cloud services make it easy to conveniently spin up and down test environments, making it much easier to rehearse disaster scenarios. His recommendation for organizations worried about ransomware is to test your DR/BC plans until it hurts, then test again.
AI Is Making Financial Fraud Easier and More Sophisticated
Artificial intelligence is making it easier for fraudsters to carry out more sophisticated attacks on financial firms, the Treasury Department said in a recent report. Recent advancements in AI mean scammers can more realistically mimic voice or video to impersonate accountholders at FIs and access accounts, the agency wrote. They also allow bad actors to craft increasingly sophisticated email phishing attacks with better formatting and fewer typos.
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Technology and Marketing
‘Digital’ Is the Love Language of Gen Z and Millennial Primacy
The author says that competing for a profitable share of the Gen Z and young Millennial banking wallet relies on meeting, even shaping, their digital demands, and less so with promoting low-fee or cash incentives to attract deposits. She says that digital ease remains high on the list of many consumers' banking desires. She concludes that the upside for FIs is that technology investments to build out these digital capabilities can pay off in primacy that runs much deeper than pivoting with changing interest rates.
3 Tactics for Deposit Marketing in 2024’s (Still) Competitive Landscape
Developing and implementing marketing strategies to grow and retain deposits is a top priority for many FIs. This article makes 3 recommendations: 1) using the data you already have about your current accountholders — balances, tenure, activity, etc. — to help you identify the best target audiences for your deposit marketing programs; 2) Tailor your deposit product offers, personalize your messaging, and customize the design of your deposit marketing communications based on the profiles or personas of your target audiences; and 3) Use your personas and detailed data about your target audiences to employ an omnichannel marketing strategy to reach your audiences where they are most likely to respond.
Smart Marketing and Data Leveraging in 2024’s Financial Services Landscape
The challenge of securing deposits while grappling with shrinking marketing budgets is omnipresent. This article looks as the following strategies: 1) User experience audits; 2) Proximity marketing; 3) Media mix optimization; and 4) Leveraging data effectively.
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Open Banking Payments Rarely Used, but Consumers Are In
Nearly half of respondents in PYMNTS Intelligence’s latest study are highly willing to use open banking payments for at least one type of expense, including monthly bills, groceries or subscriptions. Younger consumers are particularly attracted to open banking payments. Seventy-two percent of Generation Z respondents and 66% of millennials say they would be highly willing to use this payment method. Despite high interest in this method, it comes in third place behind paying via manual input of their account and routing numbers and using bill pay services offered by their FIs.
8 Months into FedNow, Silicon Valley-Area CU Has No Regrets
Star One CU was the first FI in the nation to initiate a send transaction on the FedNow service, and since that first instant payment was sent last year, their members have completed 8,236 FedNow transactions totaling $11,823,003 (as of March 21, 2024). Called Instant Pay, the service is available to all Star One members through online and mobile banking. And the good news is that the Sunnyvale, CA-based CU has seen little to no fraud. The article includes an interview with Star One CEO Gary Rodrigues about their ongoing FedNow journey.
Credit Cards Are the Most Popular Payment Method in the US
Consumer credit card debit is on the rise, hitting $1.13 trillion in Q4 2023, per the Federal Reserve Bank of New York. eMarketer predicts that credit cards will remain the most popular retail payment method in the US through next year, with total credit card transaction value reaching $3.843 trillion in 2025.
Visa Brings Some Control to Booming Subscription Economy
The global subscription market is on a steady rise, expected to reach a staggering $406B by 2025. As the trend of consumers subscribing to services in sectors such as retail, food and more increases, so does the challenge of managing their payments. Recognizing this, Visa announced the launch of Subscription Manager, a new, all-in-one service for FIs to provide Visa cardholders with a convenient way to track their subscriptions. In action it allows cardholders to see where their card details are stored, view which recurring payments are attributed to their card, and stop recurring payments.
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Cato Adds AI-Driven XDR to SASE to Reduce Network Outages
Cato Networks announced the availability of AI-powered tools that aim to more quickly identify outages and conduct root-cause analysis as part of its extended detection and response (XDR) and cloud-based secure access service edge (SASE) solution. Network Stories for Cato XDR, which is part of the Cato SASE Cloud platform, uses AI algorithms that are trained to analyze network signals and detect threats and security anomalies. The AI-powered tools evaluate the alerts to identify the root cause behind network blackouts, downed links, BGP session disconnects, and SLA-related incidents. Cato AI prioritizes network incidents to help IT teams focus their efforts on the most critical incidents first, reducing the impact of potential security threats.
Your Cloud Strategy Is Now Your AI Strategy, Too
Public cloud provider AI managed services such as Amazon Bedrock, Azure AI, and Google Cloud's Vertex have put large language models at the fingertips of both IT teams and business users. The explosion of easy-to-use cloud AI options and the pay-as-you-go options have been alluring to cloud customers. However, the authors point out that just because it's easy to get going with an AI cloud doesn't mean that it's the best choice for AI infrastructure in every case. Cost and complexity can quickly mount as users wrestle with data and optimize inferencing, which can lead to greater spending than anticipated.
CyberArk Secure Browser Helps Prevent Breaches Resulting from Cookie Theft
CyberArk has launched CyberArk Secure Browser which is an identity-centric secure browser that helps provide enhanced security and privacy. It is designed to help enable a secure passwordless experience, easy access to privileged information and assets and to prevent breaches resulting from cookie theft and session takeover attacks.
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Use Chat GPT to Help Write Social Media Responses
Without a doubt, it is difficult for agents to write social media posts that are short enough, empathetic enough, and on-brand. The author suggets that ChatGPT can help in these 3 ways: 1) Making long responses shorter; 2) Helping you express empathy; and 3) Assisting with writing responses in your organization’s brand voice.
Transforming Contact Centers with AI: 4 Essential Use Cases
This article states that when supported by gen AI, machine learning and automation, contact centers can provide people with a personalized experience and self-service options, while also empowering contact center employees with the tools needed to deliver superior service. It cites the following most frequently cited use cases for deploying AI to boost CX: 1) Virtual autopilots; 2) Optimizing self-service and assisted service with chatbot or guided conversations; 3) Improving contact center agent effectiveness with copilot; and 4) Enlightening contact center with actionable insights.
How AI and Chatbots Are Revolutionizing Consumer Experiences
Are chatbots just glorified answering machines? The author says "not anymore." As AI technology continues to evolve, he predicts sophisticated chatbots with advanced capabilities such as omnichannel engagement, emotional intelligence and predictive analytics will come into play. He concludes that as AI continues to develop, the possibilities for revolutionizing CX are limitless.
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