Credit unions put their members’ best interests at the heart of all decision-making
- Credit unions are committed to protecting their members’ privacy and security. Any decisions are made with the members’ best interests as our top priority.
- Regulatory frameworks, such as open banking and digital tools similar to digital ID and ThreatMetrix, are designed to curb the misuse and proliferation of personal information. They are intended to protect members from fraudsters working to access their data without permission.
- Any decisions about digital services are made after extensive review, consultation, and consideration of best practices, with the goal of providing better service while maintaining the highest standards of online security.
Open banking
- Open banking will allow consumers to direct their financial institutions, using their explicit consent, to share their data with financial technology companies (FinTechs) for agreed-upon durations and purposes.
- Open Banking is optional for consumers and Credit Unions. Currently, Open Banking is available in the UK and Australia. And Canada’s Government has been consulting with credit unions, banks, and FinTechs to develop a Canadian framework. If a person does not want to use open banking (if available through their Financial Institution) products and services, they are not required to do so, and they can also revoke their consent when they wish.
- In an Open Banking framework, your financial institution can securely share your data with the app on your behalf. The framework will codify the rights and obligations of participating entities, and create technical standards and security requirements, liability, and recourse structures, for the safe and secure sharing of your financial data.
Digital ID
- Digital ID is an electronic version of identification, such as a driver’s license, and is an optional tool. It can be stored in a secure digital wallet app to help people and businesses prove who they are online and in person.
- A Digital ID limits the number of places a member’s ID may be stored and provides information only that is necessary to complete a service or transaction.
- Digital IDs are not tracking devices or are usable without a member’s permission.
Central Bank Digital Currency (CBDC)
- CBDC is digital money issued by a central bank.
- While the Bank of Canada has no plans to issue a digital currency, the Bank is researching how a potential CBDC would be private, safe, and universally acceptable to understand better how the digital form of cash could affect Canadians.
- Even if the Bank of Canada were to move forward with CBDC, paper money would still be available for Canadians.
Biometric credentials
- Biometric credentials identify and/or verify a member’s identity using a person’s unique features. It provides an additional layer of security, such as prompting the user to scan a fingerprint or use facial recognition technology to log in to their online account, transfer money, etc. Biometrics is available through The Energy Credit Union’s Mobile App on select Smartphones.
- A member must consent to provide biometric credentials to their financial institution. And currently, it is not required for a credit union member to access banking services and products.
- Using biometric credentials can help prevent fraud, improve member experience, and reduce risk.
Cybersecurity Platforms and Tools
- Cybersecurity platforms (e.g., ThreatMetrix) are used to detect and prevent fraud and cyber-attacks. They are designed to help businesses protect themselves and their customers.
- These tools are commonly used by financial institutions, e-commerce companies, and other organizations that handle sensitive data or financial transactions to help prevent account takeovers, payment fraud, identity theft, and other cyber attacks.
- These tools help financial institutions reduce fraud losses, protect user/member information, and improve customer trust.
