Security and compliance are the main challenges facing credit unions, according to a new report.
Over 100 credit union CEO’s and managers were surveyed by technology firm ActionPoint for the study, with 80% reporting security and compliance as the main challenge facing credit unions.
When questioned on their vulnerability to cyber-attacks, 40% of respondents did not believe they would be well equipped to deal with a cyberattack.
The Barracuda Institute recently reported a 600% increase in phishing scams and hacking threats since the onset of the pandemic this year. ActionPoint said this extreme increase in threat is something of concern to all organisations operating online.
“These figures mean that there is no room for error here for any organisation,” ActionPoint CEO David Jeffreys said.
“With so much new regulation from the central bank on compliance and security, the pressure is really on credit unions to invest wisely in their IT security and infrastructure.” The report also showed an increased motivation to prioritize credit union’s digital capacity in light of Covid-19.
Prior to the pandemic, around three fifth’s of credit unions surveyed said a move to the cloud was part of their strategic plan. Post pandemic, 80% said cloud adoption was a top priority.
Mr Jeffreys said that it’s the beginning of a new era for the industry: “Credit unions have always been adaptable and seen the potential to progress by upgrading their services and taking them online where possible."
"We have seen many branches undergo digital transformations over the past few years, but the outlook now is to take that to the next level.”