When many people hear the term dormant they think of once active, but now quiet volcanoes. For those scientists that have the difficult job of classifying a volcano as dormant versus extinct, the process can take years. Luckily for credit unions, they don’t need to turn to volcanologists for assistance when analyzing inactive accounts. Finding a means to erupt inactive credit card accounts is a bit easier. Who’s your cardologist? So what is the key in both scenarios – volcano classification and credit card history?Data! Neither scientists nor credit card analysts will get very far without solid information. Credit union card teams need to analyze as much internal and external data as possible in order to properly segment dormant cardholders before executing strategies to bring them back to life.We couldn’t agree more with the following statement from CUInsight, “The key to success is identifying which of a portfolio’s dormant credit card accounts offer the greatest potential for reactivation.” In the article “Data-driven strategies wake sleeping credit card accounts,” the analysts have found that dormant credit card account owners generally fall into one of four basic categories: continue reading » 1SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr
72SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Lou Grilli Lou Grilli is a Senior Innovation Strategist. Lou is tasked with building and shaping a superior payment and member experience capability for PSCU and its Owner credit unions. Lou’s … Web: https://www.pscu.com Details It’s fairly well known that as chip cards and chip card readers are putting a big dent in fraud conducted at the point-of-sale (counterfeit fraud), the bad guys are shifting their efforts to committing fraud online. E-commerce fraud (52%) clearly outweighs swiped fraud (28%) on credit cards, with debit card fraud still experiencing swiped fraud, since not as many debit cards have been reissued with chips – that will change by the end of this year. Meanwhile, ecommerce breaches are popping up in the news with increasing frequency. What can a credit union do to help members stay safe when shopping online? One solution is to offer virtual cards. A virtual card is a separate temporary card number, associated with the member’s credit card account, randomly generated. The temporary card number has no real-life plastic version – it only exists as a number, an expiry and a CVV2. When a member wants to shop online at a site that is not known or trusted, or give a card number over the phone to a merchant that the member has reason to believe may not keep the card number secure, the member goes online, requests a virtual card, copies the card number onto the e-commerce site, or reads the card number over the phone. Think of the virtual card number as a token representation of the real card – a token that looks like and works like a credit card. Virtual cards come in three types: 1) Burner cards, which are single use cards. Once the virtual number is charged, the card is expired. If it is breached, it cannot be authorized. 2) Single merchant cards, which can be used multiple times, but only with a single merchant. If a member is planning on ordering multiple items, or multiple items will ship at different times, the card will authorize for that merchant. But after the first authorization, the card cannot be used with any other merchant. 3) Limited time cards, in which the member sets an expiry date, in order to shop at multiple sites, but only within a strict period. For example, the virtual card could be authorized for use over a two-day period or up to a one-year period. The card could also be used for a Netflix subscription or for monthly deliveries of meal kits. In addition, each of the cards typically have a spending limit, for both a single transaction and total card usage. If the virtual card number is compromised, the true card number remains safe, and the breached virtual card number is limited by its expiry, or merchant or both, making it virtually worthless to a fraudster. Virtual cards are in the market today, but consumers who want this have two choices. For a true virtual credit card, a consumer can get a credit card with a financial institution that also offers virtual cards. Bank of America calls their virtual card program ShopSafe, while Citi refers to their program as Virtual Account Number. Both are free. The other option is from various third-parties that offer different forms of virtual cards. Privacy.com allows anyone to enroll their checking/saving/share draft account, and after installing a browser extension and following the instant account validation, immediately access virtual cards. The drawback to this approach is that each transaction using the virtual card draws immediately from the consumer’s account, much like a debit card works. Another third party that offers virtual cards is netspend, which is primarily a prepaid debit card, but also offers the ability to generate a temporary card number online and then cancel the temporary card online. Although virtual cards seem like a panacea for keeping a member safe when shopping online, there are a few drawbacks and some major criticisms against this unique capability. There are some hotels and some car rental agencies that validate a reservation by requesting to see the same card used to make the reservation. If a virtual card is used, not only is there no plastic representation of the card to show, but most likely the member didn’t write down or capture separately the full card number. If a member makes a purchase online, then returns an item to a brick and mortar store, the credit for the purchase is typically put back on the same card, by swiping or inserting the card at the returns desk. With no card to show, the only option the consumer may have is to accept store credit. Setting an expiry date provides a level of protection but can also cause unintended problems. Some merchants charge upon shipping, which could be several days or even weeks after the order. If the expiration date is set too soon, the order may be cancelled when the card doesn’t authorize. And most importantly, virtual cards offer very little protection over the real credit card. Visa and Mastercard both offer zero liability in case of fraud, and many issuers offer next day replacement for cards that need to be reissued. Some issuers who used to offer virtual cards, including AmEx, Discover, and Chase, found that the low number of users did not justify the cost of maintaining the functionality and subsequently dropped the service. Benefit to credit unionsThe key reasons why a credit union would consider offering virtual credit cards to its members is to help reduce fraud and to create a “sticky” member service. There is a cost to offer this service, but there is a cost of fraud – reissuing cards, shipping a replacement card overnight, refunding amounts to a breached debit account. And this service is popular with those who use it – so much so that it may keep a member from leaving just because virtual cards are offered. Luckily, virtual cards are not the only option to protecting members from card-not-present fraud. Using Apple Pay in-app and in browser where merchants have added Apple Pay as a payment acceptance method assures the user that a secure token is used in the transaction, if you are shopping from your phone. If shopping from a desktop or laptop or from a phone, using Visa Checkout or Masterpass also affords the same level of protection as Apple Pay where accepted – again the payment is tokenized. And the best part, the cost to the credit union to enroll in Apple Pay, Visa Checkout and Masterpass is less than creating virtual cards.
As we approach fall 2020, the chance that you are still on track with your master plan that you started the year with is probably 0%. Heck for all of us, the plan we started the year with went out the window in March! This year reminds me of a quote from Mike Tyson, “Everyone has a plan until they get punched in the mouth!”If there is any trait of leadership that 2020 shows we need, it is flexibility. Quite often, things don’t go quite as planned. It is then that we need to see if we need to keep pushing forward on the same plan, modify the plan a bit, or scrap it totally. John Boyd was a young airman flying F-86 Sabre fighters during the Korean War. He noticed that American pilots were downing Soviet MIG-18s with greater frequency than the Soviets were destroying U.S. fighters. Sometimes this differential was as much as 10 MIGs to every single F-86. This differential intrigued John as the MIGs were known to be technically superior to the F-86s in most categories and the fighter pilot training on both sides was similar.After the war, John continued to serve his country in the Pentagon. He studied this phenomenon and discovered there were two slight advantages the F-86 had. First, F-86s had a bubble canopy for the cockpit that allowed a larger field of vision than the MIG planes. Second, the F-86 had easier hydraulic controls; this allowed our pilots to not exert themselves physically when aiming guns at the enemy. These two combinations gave the Americans an incredible advantage.John continued to expand on these insights by crafting the OODA loop. OODA stands for Observe, Orient, Decide and Act. This is a program for leadership which after the last step is repeated. The first step is to Observe. This is taking account of circumstances, outside information, implicit guidance and control, and unfolding interaction with the environment. If the loop was completed in the past, then the results of those actions are reviewed. The pilot who is searching the skies, a quarterback viewing the defense at the line of scrimmage, or a leader assessing the market are all examples of this first step.The initial Observation leads to the next step which is Orient. This step mixes cultural traditions, heritage, past experiences, and new information together to analyze and synthesize the observation through these filters. Here think of the pilot moving into position behind the enemy, a quarterback dropping back for a pass, or the business leader getting ready to respond to various market segments. After Orientation, the next step is to Decide. Decision uses what was learned in Observation and Orientation, under the governance of implicit and control, a decision is made. This decision is fed back to the original observation. At this point the pilot has the bogey in the crosshairs, the quarterback has spotted the receiver about to break open in the slot, or the business leader sees the unique ability to advertise to a particular market.The last step is to Act. After OOD, Action has feedback immediately with the observation when the action is executed and after the action occurs once unfolding interaction with the environment from which the action occurs. In this step the pilot has fired on the enemy, the pass is released from the quarterback’s hand or the advertising campaign has started. The cycle repeats after Action. What impact has the Action had on the environment? What changed from the initial Observation? Was the information in your input correct? What are the next steps to re-orient your organization after the present action? Leaders who march at breakneck speed are able to process the loop quickly and turn it again and again throughout the OODA process. There is danger in stopping at various points in the loop and not moving forward. Too much observation can lead to analysis paralysis. Deciding, before orienting yourself to execute on the plan, can create a misfire. Failure to decide and act will never lead you to grow. Failure to observe the environment can cause you to think you are accomplishing great things, yet no one is following your lead. What do you observe now in the economy in 2020? Some areas of the country, like my beloved South Dakota, are open with no restrictions from the state. Other areas remain shut down or in some stage of impaired liberty with rules imposed by governmental leaders. Prolonged shutdowns will have a devastating impact on commercial real estate and business. You probably have moved some loans temporarily to interest only or skipped payments completely for a while. The nature of work is also changing as many jobs have moved to remote or distance work and may not move back to the office. Financial institutions have closed lobbies, and some have moved staff to remote working. Some of us have worked incredibly long hours to help supply business with the SBA’s PPP loans.Most CUs are flush with deposits. Investment options provide little yield. Lenders are hesitant to extend credit. They are under pressure to lower interest rates on existing credits, even those which would normally not qualify based upon the performance of the business. How we judged risk at the beginning of the year does not seem to apply to our current situation. Management and leadership skills of the borrower are of more importance today. As we emerge from the pandemic, there are several ways we can position our CU better for success and as a valuable resource for your communities.How do we judge risk going forward? Have you placed extra funds into loan loss reserve for expected losses?Do you have the staff to adequately handle the complexities of problem loan workouts? Do you need to hire more people or seek contracted outside help?How will you find new, good relationships during this time? Good credits are available as other institutions are shut down for lending or are distracted with their own problems.How do you handle the pricing pressure from your borrowers and match this with their business performance?What can you do to gain better value from your outside credit risk review and asset-liability management? These are pushed by the examiners and most of them do not identify systemic strengths and weaknesses of the institution. The five above do not make an exhaustive list, but are very key in a start for the decisions you need to act on. Then moving to the beginning of the OODA loop, continue to reassess the next plays necessary for continued success. 1SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Phil Love Phil leads Pactola, a CUSO devoted to commercial and agricultural lending, participation management, credit administration support, lender education, and third-party loan review services. He has over 35 years in the … Web: https://pactola.com Details
To access this article REGISTER NOWWould you like print copies, app and digital replica access too? SUBSCRIBE for as little as £5 per week. Would you like to read more?Register for free to finish this article.Sign up now for the following benefits:Four FREE articles of your choice per monthBreaking news, comment and analysis from industry experts as it happensChoose from our portfolio of email newsletters
As people across the country are forced to stay inside their homes to flatten Indonesia’s COVID-19 curve, many seek solace in urban farming amid the waves of bad news of increasing deaths and infections by the disease.One of them is Asmara Wreksono, a Jakarta-based media professional who has recently started indulging in urban farming. Since she started to go on self-isolation due to COVID-19, she has grown a number of vegetables, such as water spinach, red spinach and Chinese cabbage, in her house.Asmara explained that she initially started her own small vegetable garden for self-sustaining purposes, as consuming home-grown vegetables had always been her interest. Urban farming is popular in other cities as well. Yogyakarta resident Arsih echoed Asmara, saying she started her own vegetable garden to fulfill her personal consumption as well as for stress healing.Read also: South Jakarta’s ‘orange troops’ spread joy with urban farm“A number of villages in Yogyakarta have already closed down access to their area, hindering vegetable seller from stopping at my place. Therefore, I started to grow my own vegetables,” said Arsih.Venda Pratama, a graduate student also residing in Yogyakarta, went the extra mile as urban farming had become his additional source of income. Venda, who has been practicing urban farming since 2017, has not only fed his family with home-grown vegetables but is also selling them to his neighbors.Urban farming and community gardens have been praised as an effort to reduce negative the environmental impacts caused by conventional farming and as a form of therapy.Landscape architect Kotchakorn Voraakhom, who designed Asia’s largest urban rooftop farm in Bangkok, said urban farming helped improve food security and nutrition while reducing the impacts of climate change and lowering stress levels, as reported by Reuters.A 2018 study published in scientific journal Earth’s Future highlighted that urban agriculture would play a crucial role in feeding two-thirds of the world’s population living in cities by 2050, as urban farming practices could produce as much as 180 million tons of food annually.This comes in handy amid the COVID-19 outbreak, as cities started closing off their borders to restrict people’s movements in preventing the disease’s spread. Concerns have risen that the transportation of supplies and staple foods will be disrupted by the policy.A vegetable garden owned Venda Pratama, a graduate student from Yogyakarta who created his own small garden at home that has been enjoyed by his family and neighbors. (Courtesy of /Venda Pratama)Singapore has been tapping into the potential of urban farming amid concerns that the pandemic would disrupt global supply chains. Reuters reported that the city-state announced on Wednesday several new measures to support local food production, including a plan to turn car park rooftops into urban farms.The government will provide a S$30 million (US$21 million) grant to assist the production of eggs, leafy vegetables and fish, as well as to identify alternative farming spaces.Similar initiatives of support for urban farming from authorities, however, have yet been observed in Indonesia — even though the trend had been blooming in the country since the early 2010s.Read also: Urban farmers withstand floods, pests in Jakarta’s surviving paddy fieldsFarming and gardening might not be many urbanites’ forte, but that does not mean it’s impossible to be done.“To avoid frustration, research and choose some of the easiest and most prolific vegetables to grow in your area,” wrote New York-based Recyclebank on its website.The company also suggested new gardeners possessing limited space in their home or community to consider planting in plastic containers or raised beds, as they would allow gardeners to control the soil quality.Tifa Asrianti, a resident of Bekasi, West Java, who started her own community garden in 2011, said urban farming also depended on someone’s beliefs on the practice: “We have to put our faith in your vegetables if we want them to grow nicely.”Topics : The garden has served an additional purpose in the past few weeks of diverting Asmara’s attention from news and information regarding the COVID-19 pandemic.“I treated hydroponics as a fun hobby. It keeps me sane amid the stay-at-home period in this time of crisis,” Asmara told The Jakarta Post recently.“It was also a delight for me to find that there are a lot of people doing this in Jakarta.”Plastic cups are used to house plants and are placed on top of a makeshift catfish pond owned by Yogyakarta resident Arsih, who started her own small garden as a way to cope with the stress of the COVID-19 outbreak, as well as to provide food for her family. (Courtesy of/Arsih)