Credit Unions: Focus More on Your Members and Less on Compliance and Fraud

by Jason Heil

Jason Heil

Credit unions have seen their operating costs rise dramatically since the 2008 financial crisis, due to the plethora of new regulatory and compliance changes that came in its aftermath. A report issued by the Credit Union National Association (CUNA) reveals that the financial impact of regulation on the credit union industry was $7.2 billion as of 2014, with $6.1 billion in costs and $1.1 billion in lost revenue.1

In a letter to the Consumer Financial Protection Bureau (CFPB) dated June, 1 2017, the President and CEO of CUNA urged the director of the CFPB to consider the impact these new regulations have had on credit unions and their ability to serve customers.

He writes, “Unfortunately, credit unions’ ability to provide their top quality and consumer-friendly financial products and services has been significantly impeded in the last several years by a regulatory scheme, which has favored the large banks and nonbank financial services providers who can afford to absorb regulatory and compliance changes.”2

If the burden of adhering to these new regulations isn’t enough, fraud threats are growing—the Credit Union Times reported that 2017 could set a record for fraud—and credit unions are far from immune.3 With the rising costs of fraud and compliance, how can your credit union effectively manage both, while maintaining strong relationships with your members?

ID Analytics is no stranger to the dangers of fraud and the challenges of compliance. We work closely with our clients to help reduce fraud losses, decrease operational costs, and ensure a good customer experience, without sacrificing compliance.

We’d like the opportunity to help your credit union navigate these challenges and achieve results.

Today, our solutions have helped a leading credit union realize a 63% increase in their booking rate while decreasing the charge-off rate in their overall portfolio by 20%. In our work with another top credit union, we were able to capture 50% of fraud in the riskiest 3% of overall member applications.

If you plan to attend the Symitar Conference, August 28-31 in San Diego, Calif., please stop by booth number 201 to learn more about how ID Analytics can support your credit union’s fraud prevention and compliance efforts.


Jason Heil is a Principal Professional Services Consultant at ID Analytics, LLC


1.  Hui, V., Myers, R., Seymour, K, “Regulatory Financial Impact Study.” Cornerstone Advisors, Inc., 2016).