Employees of Estacado Federal Credit Union went to work Sept. 7 knowing there would be some issues.
A weekend storm had caused flooding that took out internet connections in many areas of Hobbs, N.M., including the $82.8 million asset credit union. Estacado Federal lost service at all three of its branches—two in New Mexico and one in Texas—and service was still out when it reopened Tuesday after being closed on Labor Day.
“The phones were working but not the internet,” Estacado CEO Mark Roddenberry says. “Everything worked except for this building. The problem is, when you open the door on Tuesday morning after a three-day weekend, people walk in and say, ‘I want money.’”
This situation wasn’t a first at Estacado Federal, which has traditionally operated with an in-house system that required the credit union’s internet connection to work to check member balances. But that’s no longer the case after it updated its core processing system.
“Our goal was to get rid of some of our major problems, one of which is that we’re a little remote out here,” Roddenberry says. “With this system we changed six or seven products and audio, internet, and mobile banking at one time to try to leap forward.”
The new system, which had been implemented at the beginning of 2021 and includes upgraded digital banking, communications, and an audio response platform, was uniquely put to the test Sept. 7. When service shut down in the past, Estacado Federal’s protocol was to allow members to take out a maximum of $200 due to the inability to verify account balances.
That protocol changed Sept. 7 as the new services, such as ENACOMM’s intelligent interactive voice response (IVR), allowed members to access their accounts in a variety of ways.
Once tellers could verify sufficient funds, whether by digital means or via the IVR, they approved the withdrawals.  
“Most bank runs start with people feeling like they can’t get their money. We don’t want to start that,” Roddenberry says, noting that it’s essential to serve members at all times because of the psychological importance of people knowing they can access their money.
Read the article at CUNA News: https://bit.ly/3nwnH5c
<img src="/images/uploads/mark-roddenberry.jpg" alt="Mark Roddenberry" title="Mark Roddenberry">

ENACOMM enables Estacado Federal Credit Union to continue serving its members despite an internet outage that left its online banking system out of reach

CUNA News - Technology saves the day during internet outage

"The meteoric rise of data and performance-intensive workloads like generative AI is forcing a complete rethink of how data is stored, managed and processed,” said Nick Patience, senior research analyst at 451 Research, part of S&#x26;P Global Market Intelligence. According to S&#x26;P Global's new 2023 Global Trends in Artificial Intelligence (AI) <a href="https://www.prnewswire.com/il/news-releases/new-study-reveals-data-management-is-a-top-challenge-in-the-ai-revolution-301901584.html">report</a>, the adoption of AI by enterprises and organizations seeking to create new value propositions is accelerating, but data infrastructure and AI sustainability challenges present barriers to implementing it successfully at scale.
Indeed, the financial services industry wants to hop aboard the artificial intelligence train, too – but does the risk outweigh the rewards? In banking, AI can overhaul internal operations and elevate the customer experience (CX)…but the sensitive data that powers these evolutions must be properly handled. While the importance of this challenge cannot be understated, small banks and credit unions need not miss out on the technology’s transformative power.
For too long, smaller banks and credit unions have been challenged by unequal access to AI technology. From conference agendas to marketing materials, community financial institutions with less than $500 million of assets have been segregated and treated differently.
But financial institutions of all sizes need AI. It increases productivity, reveals the drivers of key performance measures, improves risk and fraud analysis, and powers the next generation of digitally driven products and services. And with financial institutions vying to retain and grow market share in a fiercely competitive landscape, AI enables banks and credit unions to set themselves apart with seamless, modern customer and member service. Of interest, AI has shifted from simply being a cost-saving lever to acting as a revenue driver, with 69 percent of respondents in the S&#x26;P Global survey saying they’re now using AI/ML to create new revenue streams.
Many community financial institutions are trailing behind their larger competitors in AI adoption, because they have either been overlooked by fintech vendors, who don’t serve them at all (due to their asset size), or because they assume they can’t afford the technology. But cost doesn’t have to be a barrier. Some fintech providers are reaching smaller institutions through channel partners who help banks and credit unions of all sizes compete by harnessing the latest technologies. Community banks and credit unions should reach out to their trusted technology advisors to inquire about AI vendors who price their solutions on a sliding scale. Some understand the important role that smaller institutions play within their communities and within the industry overall and, thus, bring next-generation technologies within reach for all institutions. Even though the delivery of the solution may be different, the technology itself doesn’t have to be.
Another hurdle that many community financial institutions face is lack of a big budget for R&#x26;D or a large IT staff. Thankfully, banks and credit unions can rely on the expertise of FinTechs, who specialize in designing technology to solve problems. Through synergistic partnerships, financial institutions can gain access to the latest technologies without the burden and headache of operations and infrastructure sustainment.
In the same vein, FinTechs can help financial institutions overcome the previously identified data infrastructure challenge. Banks and credit unions have long struggled to enhance the quality of data and create seamless, secure access to it. Siloed data, multiple data connection hops and antiquated back-ends that haven’t been modernized to today’s standards can prevent banking outfits from harvesting the value of AI; access to quality data is what unlocks AI’s potential. Handling sensitive data is also a risk, but it’s one that fintech experts are able to help FIs manage. Through partnership, banks and credit unions can tap into the technical expertise needed to elevate their operations and offerings.
So, banks and credit unions, regardless of your asset size, climb on the AI train – you don’t have to be left behind. As McKinsey &#x26; Company <a href="https://www.mckinsey.com/industries/financial-services/our-insights/reimagining-customer-engagement-for-the-ai-bank-of-the-future">concluded</a> back in 2020, before ChatGPT skyrocketed AI to popularity, “Banks that leverage AI and analytics to deliver smart servicing and superior experiences stand to increase customer satisfaction and loyalty,” which we all know is integral to survival in today’s competitive financial landscape.
R﻿ead the article at Finextra: <a href="https://www.finextra.com/blogposting/24938/fis-of-all-sizes-can-harness-the-transformative-power-of-ai-with-the-help-of-fintech-partners">https://www.finextra.com/blogposting/24938/fis-of-all-sizes-can-harness-the-transformative-power-of-ai-with-the-help-of-fintech-partners</a>

Financial institutions of all sizes need AI-powered technologies

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CUNA News - Technology saves the day during internet outage

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