Credit union service organization Velera has introduced an identity security/authentication tool.
IDCheck by Co-op, announced Thursday (Aug. 1), is available to members of the Co-op Shared Branch network, which lets credit union members conduct transactions at partner credit unions throughout the country.
“With the increase in digital capabilities and payments offerings, the potential for fraud will also continue to grow,” Amy Evans, Velera’s senior vice president for strategic network solutions, said in a news release provided to PYMNTS. “IDCheck supports an omnichannel fraud fighting and prevention strategy to safeguard credit unions and their members participating in Co-op Shared Branch.”
According to the release, IDCheck can help protect credit union (CU) members by authenticating their identity through their smart devices when accessing their accounts at a shared branch.
The tool asks members to share a photo of their ID and a selfie, and then uses advanced graph-defined logic, artificial intelligence (AI) and biometric data to verify the ID and the member in real time. From there, members get a one-time passcode to share with a teller and confirm their identity.
They can also pre-authenticate their identification before going into a branch to transact, or save their validation for future visits, said Velera, previously known as PSCU/Co-op Solutions.
As PYMNTS wrote last year, fraud attacks against banks and CUs aren’t new, although consumers have begun taking them much more seriously.
One recent study found that nearly three-quarters of consumers rate fraud protection as one of their top three priorities when opening a new account at a bank or CU, surpassing ease of use (61%) and good value for their money at 46%.
“CUs must implement strong measures to protect themselves and their members from fraud — or watch members take their business elsewhere,” PYMNTS wrote.
Meanwhile, PYMNTS Intelligence and Velera recently collaborated on the report “How CUs Can Drive Engagement with Self-Service Banking Innovation.”
The study found that “ongoing innovation in self-service banking — including online and mobile options and the ability to use any ATM — can help CUs stand out, especially among younger consumers.”
For example, close to one-quarter of Generation Z and bridge millennials picked a financial institution (FI) based on self-service banking convenience and user experience. CUs that make investments in self-service banking innovations are well-positioned to increase memberships among younger consumers — particularly Gen Z.
