BY PAUL LAPORTE
Is your credit union’s limited information technology budget putting a strain on business? Undoubtedly your IT team faces challenges, and when it does those challenges likely fall into one of three categories. “Credit Union BUSINESS” takes a look at this trio of IT trials and attempts to make them less burdensome for your CU.
Solving the IT Budget Conundrum
U.S. credit unions serve 100 million members, or almost half (43.7 percent) of the active banking population. Despite this large customer base, they are substantially smaller than traditional banks as measured by average assets under management (15-1 assets). This difference in total managed assets translates into smaller operating budgets. In particular, information technology budgets often are much smaller than those of big banks. The difference in IT spending creates a unique set of challenges for credit unions, necessitating creativity as well as acute clarity of purpose and priorities for solving those challenges.
Key 2016 IT challenges for credit unions can be classified into three categories: security and compliance, performance management, and management of expectations and activities related to the cloud.
Strengthening Internal Security and Compliance
For any financial institution, security and compliance continue to rank at the top of not just IT, but all corporate priorities. For the purposes of this article, we’ll set aside the topics of traditional external security: firewalls, virus and malware detection, and intrusion detection and prevention.
Instead, we’ll examine the less protected areas, especially for credit unions: insider threats. Insider threats can be broken into two sections: deliberate and inadvertent threats. The largest target of insider threats is sensitive content, such as member personally identifiable information (PII) that is related to the credit union and employee PII.
This sensitive content needs to be protected from accidental access, disclosure and theft. Accomplishing this protection requires sensitive content identification and detection, blocking and remediation as appropriate, and permissions management. It also necessitates the ability to learn your unique environment and needs to better conform to your credit union’s profile.