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How many times have you heard, “We’ll probably let smaller banks and credit unions try this out first, and see what kind of fraud happens, and then we’ll end up doing it ourselves.” 

I had to interrupt my Democratizing Security series for one post, to fill you all in on a great encounter I had over the weekend with an account rep at a global, money-center bank.

A guy walks into a money-center bank…..
I had some accounts that needed tending to and was being helped by one of the bank’s account reps. Very nice and professional guy by the way, even though they were out of complimentary coffee. Throughout the course of our conversation, he was incredibly helpful but I couldn’t help myself, as we were wrapping up, I asked him if he had ever heard of photo bill pay. When he told me that he had never heard of such a thing, I got excited, as you might imagine. We chatted and he asked some good questions about how it worked while I showed him our app in action. He even told me that he wanted those features in his own bank’s app and quickly dropped a suggestion note that he sent straight to the main office.

What happens next may seem astounding. “I’m sure that we’ll probably let smaller banks and credit unions try out this kind of thing, and see what kind of fraud happens, and then we’ll end up doing it ourselves,” he told me, a developer of mobile apps for community banks. I think I actually audibly “harrumphed”, and then responded to him that the smaller institutions were the innovators in these cases and gave him some real life examples of our own customers who had great success with things like Picture Pay and Card Management features. 

His fraud comment, however, really piqued my interest.  Though I’m sure that this one individual does not represent the entire money-center institution, it reflects a mindset that is more than likely pervasive. This same institution, who’s already modeled in millions of dollars in fraud losses into their basic business model is allowing you, the community bank or credit union, to take the “chances”, and will follow along.

The reality, of course, is that these large institutions have more of an appetite and resources to mitigate risk than the average small financial institution. They also have more development resources available to build a solution themselves that could possibly rival or exceed the latest technology on the market today. But here’s the point: they’re not.  Malauzai’s customers are beating them hands down with new and innovative products, such as Picture Pay and Card Management.

Community Banks ARE leading the way
In light of recent news regarding two major retailers’ debit card fraud situations and the amount of resources and potential losses absorbed due to re-issuing of cards, Malauzai customers with our Card Management feature, were out there differentiating themselves.  They were able to take advantage of card management’s on/off option and took the opportunity to educate their own end users on anti-fraud measures and the tools available in the app to protect them selves. And I think that’s as cool as it gets.

So you know what? Let’s let the money-center banks continue to let you smaller guys take the chances. What they don’t realize is that your solutions are absolutely secure, and are out innovating them at a record pace. Keep up the great work!

Danny Piangerelli, Chief Technology Officer Malauzai Software danny.piangerelli@malauzai.com