Credit unions’ emphasis on member relationships is one of the main factors that distinguishes them from large banks and FinTechs. PYMNTS’ Credit Union Innovation Index found 65 percent of CU members chose credit unions as their primary financial institutions (FIs) because they trusted them, compared to 45 percent of non-CU members who said the same. It also revealed that 60.8 percent of the former said they would not leave their CUs for other FIs even if offered the same financial services — an indicator of how important trust is in influencing members’ decisions.Failing to prevent a data breach is a surefire way to lose that trust, however. Credit unions possess vast troves of personal information such as credit card data and Social Security numbers that could devastate members if leaked. Those affected by such incidents are likely to switch to another credit union or even abandon the industry entirely.
Several CUs have fallen victim to data breaches over the years, but many are instituting new defenses to combat such problems. Governments are stepping up to protect CU members, too, adding a layer of assurance that those…
