Idaho Bankers’ Advocacy in Washington D.C., A Comprehensive Agenda

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Last week, Idaho’s bankers converged on Washington D.C., representing the state’s diverse financial interests. This delegation included bankers Jeff Huhn, Cheryl Sorensen, and Carlan McDaniel as well as IBA’s Trent Wright, and Jeni Hall, and Idaho Department of Finance Director Patti Perkins. In addition, the Idaho group comprised delegates from Umpqua Bank, U.S. Bank, Washington Trust Bank, Heritage Bank, Bank of America, and Bank of Eastern Oregon. The purpose was clear: to engage in meaningful dialogues with our Congressional Delegation and Federal Regulators, casting light on pressing legislative  and regulatory issues.

A key focal point was the “Promoting Fair Lending to Small Businesses Act” that seeks uniform oversight across all lenders, guaranteeing equitable lending terms for small enterprises. Further, there were deliberations to streamline data collection methodologies championed by the CFPB under rule 1071. Credit unions, with their distinct tax advantages, were also under the lens. Lawmakers are keenly assessing their contributions, especially in juxtaposition to community banks, to low-to-moderate-income communities. Global discussions on Central Bank Digital Currencies (CBDCs) haven’t gone unnoticed, and Idaho bankers expressed apprehensions about the potential federal competition they might pose against traditional banking mechanisms. Another pivotal discussion was on interchange fees. Idaho bankers staunchly opposed price controls on these fees, emphasizing that such measures, instead of benefiting consumers, end up disproportionately favoring a handful of large merchants while sidelining small businesses. Additionally, underscoring the heartbeat of rural America, the delegation pushed for initiatives to reduce credit costs for rural stakeholders, including farmers, ranchers, and homeowners.

This recent expedition to the nation’s capital underscores the dedication and forward-thinking approach of Idaho’s bankers. By advocating for these issues at the national level, Idaho bankers are ensuring that the unique challenges and opportunities of Idaho’s financial landscape are recognized and addressed. Idaho bankers’ endeavors in Washington D.C. are a testament to their commitment to shaping a more inclusive and progressive financial environment for all stakeholders, both in Idaho and across the nation.

HELOC Scams

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Home Equity Line of Credit (HELOC) scams continue to be a costly and challenging issue for financial institutions. Wire transfer fraud can easily reach millions of dollars, and with advancements in technology, such as online databases for county clerk records, online banking and online title searching, data commonly used by financial institutions to verify customer identity for wire transactions is routinely and easily compromised.

Several financial institutions have fallen victim to losses arising out of wire transfer and check forgery schemes targeting HELOC accounts and have taken action to mitigate the risk of future loss experience. Institutions that place a high value on their customer service and customer confidence in the institution’s security against wire transfer fraud have implemented risk mitigation upgrades to their operations to help solidify customer confidence. According to Travelers, the following steps are initiatives that can help to avoid, or at least significantly reduce, losses arising out of HELOC fraud scams:

  • Place greater emphasis on getting full account numbers from callers;
  • Phrase verification questions so that the caller is providing the information, rather than simply confirming what the financial institution has on file;
  • Remove items from the list of authentication options (such as mother’s maiden name and date of birth) that have become “public information” through social media websites and venues;
  • Train employees who field calls to verify authentication items in a specific order and not skip to other items if the caller cannot verify the requested information;
  • Train personnel with an updated full fraud-awareness module to help employees identify warning signs of fraud;
  • Encourage customers to set up PIN numbers if the automated phone system allows it;
  • Update customer account files with driver’s license numbers, if not copies of the entire driver’s license (or other government-issued ID if there is no driver’s license);
  • Utilize a mandatory callback procedure for all customer-not-present wire transfer requests;
  • Use a password to authenticate customers rather than commonly compromised information and only allow in-person modification of passwords and key account information;
  • Consider requiring full balance transfers (or transfers up to a certain percentage of the available funds) to be made in person while placing a reasonable monetary limit (or percentage limit) on customer-not-present wire transfer requests;
  • Establish a reporting procedure which refers all suspicious wire transfer requests to a higher level of authority for confirmation/processing;
  • Require a dual telephone confirmation procedure where the financial institution calls the home phone of the customer as well as an alternate number, such as a mobile phone or work phone;
  • Establish an automatic two-day holding pattern anytime a request is made to initiate a wire transfer from a HELOC account to a foreign bank account within which time the financial institution ensures accurate verification and deters fraudsters seeking immediate processing;
  • Verify change of address or phone number requests with a call to the customer’s phone number on file;
  • Customize specific and unique verification questions and procedures with an account holder/customer that can only be modified in-person.
  • Consider performing a verification call back when a purported customer calls the bank to set up on-line banking for the first time.

Technology has made it easier than ever for bad actors to obtain data that is commonly used by financial institutions to verify the identity of their customers. That’s why financial institutions must utilize robust authentication procedures to protect their customers – and themselves – from wire transfer fraud. This includes greater awareness, updated and vigilant policies, procedures and training, and implementing imaginative and unique verification procedures to help reduce the risk of loss arising out of wire transfer fraud targeting HELOC accounts.

Travelers is committed to managing and mitigating risks and exposures, and does so backed by financial stability and a dedicated team – from underwriters to claim professionals – whose mission is to insure and protect a company’s assets. For more information, visit travelers.com.

Improving Operational Efficiency Via the ITM-ATM Channel

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It has been said again and again that our job economy remains strong. Companies are reportedly hiring new employees, whether it is to fill a vacancy or expand on operations. However, this is not what I am experiencing as I go about my professional and personal life.

I repeatedly run into “longer than normal” call wait times when dealing with a customer service issue over the phone. One such situation with a cable company that promised to “wow” me, caused me to spend over 45 minutes on hold on three separate occasions just to speak to a representative. Online help chats are even taking far too long to switch from the AI bot over to a human interaction. And I still see many lobbies and restaurants that have closed their in-store service indefinitely.

It is clear to me that numbers are askew when it comes to “official” claims regarding employment figures but what are we as banks to do? Where is the slew of quality, dependable people wanting to earn a decent living. How do we adjust our operating procedures to accommodate a smaller staff at our branches and administrative offices?

Human Resources will continue to search for reliable new employees to hire but this takes time. Even the right hire from HR doesn’t always translate into a solid, long-term employee. So, how do we operate short-staffed?

What if we turn our attention to the operational tasks we burden our staff with that can be better placed in the hands of a trusted partner? Have you considered outsourcing your ATMs (or ITMs)? 99% of the industry has outsourced the operation of its core operating system and credit and debit card services. ATMs should be next on your list to outsource for several reasons.

Your staff time is critical. Enabling your staff to focus on your customers is of the utmost importance. Anything operational that pulls your staff away from this focus should be put on the list for outsourcing consideration.

ATMs are a very cost-effective means for customers to access their cash & make deposits. However, they can be a drain on your staff’s schedule. Some banks have indicated they spend 40+ hours of staff time on just 10-20 ATMs. What would the impact be for your sales and retention efforts if you could redirect 40 hours of existing, quality staff time back to a customer focus?

Another reason to consider ATM outsourcing is the cost associated with hiring employees to manage your ATMs. We like to call it a soft cost, but a mid-level FTE salary and benefits package has a direct impact on the bottom line. Even a reasonable compensation package of $55,000 adds over $4,500 to your monthly ATM bill.

You can eliminate the time spent as well as the costs associated when you outsource your ATM & ITM fleet. Put experts in charge of your program now so you can sell your existing ATM assets to your outsourcing partner and eliminate the hassle right away.

Joe Woods
SVP, Marketing & Partnerships
Dolphin Debit Access

Slips, Trips and Falls in the Workplace

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According to the National Safety Council, slips, trips and falls are the third leading cause of injury in the workplace. Some of these incidents occur at banks with employees or customers. While these mishaps might be commonplace, there is a proactive approach banks can take to help reduce the risk of their employees and customers being injured in a slip, trip and fall. A smart place to start: Analysis of both the physical conditions of the premises and usage and traffic flow patterns, which can often identify potential hazards that should be addressed.

Some of the accident causes are well known: wet spots on floors, uneven walking surfaces, dirty doormats. Other factors, such as poor lighting, might not be as noticeable but can be equally dangerous.

“Banks should be aware of the potential for people falling and getting injured, and should take steps to ensure the premises are as safe as possible,” said Laura Lundin, Vice President of Financial Institutions P&C at Travelers. “There are many ways to do this – maintain clean floor surfaces, ensure the space is well lit, schedule regular maintenance during low traffic times and conduct periodic walkthroughs to confirm everything looks safe. A little attention can go a long way.”

Working with an insurance carrier is also recommended. Insurance providers can work with banks to:

  • Help identify and assess exposures;
  • Develop loss control strategies and improvements to minimize the frequency and severity of slip, trip and fall incidents;
  • Provide training to help with slip, trip and fall prevention efforts.

If an accident does take place, be sure that it is documented and reported. This information can help prevent future incidents, and may be essential if a claim is filed against the bank. A standard, printed incident report is helpful in ensuring that all details are recorded. Documenting the details of the incident, collecting the names and a brief statement from the injured party and any witnesses, even taking photographs of the incident site can help. Slips, trips and falls rarely “just happen.”

Implementing effective slip, trip and fall improvement requires the right tools, people and communications. The right insurance carrier can help your slip, trip and fall prevention team define and document the policies, procedures, roles and responsibilities needed to effectively reduce these incidents. They also can help your team develop the tools and communication materials needed to implement this process.

Travelers is committed to managing and mitigating risks and exposures, and does so backed by financial stability and a dedicated team – from underwriters to claim professionals – whose mission is to insure and protect a company’s assets. For more information, visit www.travelers.com.