We’re Embedding Our Best Technology in Apple Pay… and Into All Digital Transactions

Originally posted on Cashless Pioneers blog

Guest post written by James Anderson, Group Head and SVP, Mobile and Emerging Payments, MasterCard

James Anderson_MC

MasterCard is the NAFCU Services Preferred Partner for Credit, Debit, and Prepaid Branded Products.

In bringing Apple Pay to consumers, Apple wanted to deliver the highest quality transactions possible. So who did they turn to? Those who’ve built the scalable payment infrastructure that is the envy of others – MasterCard.

We believe that payments should always be a simple proposition to the consumer – but once you get under the hood, there’s a very sophisticated network in place that enables any of us to walk into a store and make a purchase – trusting that our cards will work as we expect them to. We realize that consumers don’t care about that – but what they do want to know is that their information and their money are secure.  Through the work that MasterCard did with Apple and with the active engagement of the first four issuers – we’ve delivered the most secure combination of technologies that we’ve ever deployed:

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Top Things to Know About Apple Pay and the Security of Our Digital Payments Platform:

1. Apple Pay Transactions Will Work Just Like Any Other MasterCard Transaction

Transactions that originate from Apple Pay will work the same as any other MasterCard transaction. The consumer will see the card they wish to use in their iPhone from the issuer that they are used to doing business with, the merchant sees a MasterCard transaction – either the familiar contactless form in store or Digital Secure Remote Payment for in-app. Apple is never in the transaction path.

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Aligning CU Executive Incentives With CU Goals and Member Needs

By David Frankil, President, Burns-Fazzi, Brock and Associates

Dr. Jack Clark from Clark Research Associates presented the results of the 2014 NAFCU-BFB Executive Compensation and Benefits Survey at this summer’s NAFCU Annual Conference.  There were many tidbits in the presentation, but one topic caught my eye – the wide variety of incentives that Boards have used to create bonus plans for top executives.

The topic of how incentives affect behavior is far from new – go back to freshman-year economics and Adam Smith –

“It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest.”

Adam Smith, An Inquiry into the Nature & Causes of the Wealth of Nations, Vol 1, March 9, 1776

Just as water finds its own level, economic activity naturally seeks its highest and most efficient use.  That’s not to say that the greater good is subverted to individual self-interest, rather that well-designed compensation models effectively align individual incentives with desired outcomes that benefit the credit union, its members and top executives.

On that we can probably all agree – but what are the metrics and desired outcomes that will create optimal goal alignment?  To use a baseball analogy, home runs are great – but rewarding players just based on home runs would result in tons of shortstops and second basemen batting .075 as they swung from the heels every time up at the plate.  You’d have a hard time finding anyone who wanted to pitch too.

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Developing the Next Leaders Within Your Credit Union

By Peter Myers, MSC, PCC, Vice President, DDJ Myers

If I told you that you could handpick a group of leaders who would be perfectly invested in your credit union, would you jump at the chance? Now what if I told you these potential leaders may be individuals who you already interact with every day? Of course, I’m talking about looking within your own organization and identifying emerging leaders from your staff, and then providing them the training to transform into leaders and thinkers who exceed expectations for both you and your members.

Who Is an Emerging Leader in Your Credit Union?

To identify emerging leaders within your ranks, I encourage you to cast a wide net and look beyond obvious candidates such as vice presidents and other upper management. Perhaps there’s a team leader, a department manager, or a teller supervisor who has shown leadership potential by delivering excellent member service or proactively helping on team projects. By paying close attention and identifying those employees who put your credit union values into action, you may be surprised at how many of your staff have the potential to exceed expectations and grow into leadership roles. Read more

Congratulations to our 2014 Innovation Award Winners!

We all feel the strain of keeping up with the changing times.  Many credit union CEOs agree that attracting and retaining members is one of the top three challenges that credit unions face. In order to meet the ever-evolving needs of members, credit unions should rely on innovative solutions to add to their product portfolio. Innovation plays a crucial role in the credit union industry, which is why we recognize ingenuity and inventiveness  through the NAFCU Services  Innovation Awards. This year’s winners have created  outstanding innovations that help credit unions thrive in an increasingly saturated financial services market. They are:

Insuritas. The InsureNOW™ product was designed for credit unions with large member bases, big data CIF/CRM capabilities, and high member affinity levels. InsureNOW™ allows credit unions to provide highly customized, concierge-level insurance offers to their indirect borrowers at the very moment when the member intends to shop for insurance. The most innovative part of InsureNOW™ identifies insurance policy renewal dates for each member and generates targeted, automated pre-populated e-engagement communication to these indirect borrowers 30 days before their insurance policy renews.

DDJ Myers. The Board Performance Assessment was developed to meet the need to support credit union boards. The assessment is designed to guide boards in reaching their highest level of performance, and create a high standard of excellence between board and CEO, one of the most critical interactions within the credit union. The innovation lies in the assessment’s ability to make boards more cohesive and pinpoint critical areas where improvements could be made.

Burns-Fazzi, Brock. Their Executive Benefits Learning Series helps credit unions understand effective methods for executive compensation and benefits to help recruit, retain, and reward their executive team. Complex topics in executive benefits and compensation are broken down into tax, accounting, legal, regulatory compliance, funding, and administrative concepts allowing credit unions to increase their knowledge and gain free practical advice. The innovative series consists of monthly, free live webinars which are recorded and archived for future reference.

For a recap the of 2014 NAFCU-BFB Executive Compensation & Benefits Survey, register for this webinar on August 20.

Allied Solutions. UniTrac is a proprietary insurance tracking system that benefits credit unions by reducing the risk associated with collateralized loan portfolios. The tracking solution is completely workable online for credit unions through their client portal: CenterPoint. CenterPoint offers clients full access to insurance history and document images, letter notifications, customer service call notes, and claims. Lenders are able to view, work, print and download reports, submit claims, update required data fields and chat online with Allied representatives.

Join Sundeep Kapur as he discusses the future of credit unions in this week’s webinar.

A big thank you goes out to these companies and all of the other entries who continue to provide credit unions with innovative solutions that drive success.

Preferred Partners to Shine at the 47th Annual Conference in Las Vegas

Join the more than 1,200 credit union leaders, experts, and solution providers gathering next week at NAFCU’s 47th Annual Conference and Solutions Expo to discuss the most pressing issues impacting the industry. A wealth of education, innovation, and networking opportunities will energize you and your team and positively impact your operations and bottom line.

Be sure to schedule an hour on Wednesday afternoon to hear John Ulzheimer’s thoughts on Credit Scoring: Separating Myth from Reality. John, a nationally recognized credit expert, always gives fascinating insights on the credit union universe. This session, presented by VantageScore Solutions, is scheduled at 1:00 pm and repeats at 2:15 pm.

Many of our Preferred Partners will also be in Las Vegas to meet you and to share their innovations and solutions at 16 educational sessions outlined below. Note that many sessions will be repeated this year so you don’t have to choose. Download a schedule at a glance with times and room locations.

It’s not too late to join your colleagues in Vegas. Register for the convention here.