Five Identity Security Challenges Facing Credit Unions (and One Smart Solution)

Credit unions and small regional banks make up the backbone of community finance and are deeply connected to the communities and regions that they serve. Today, these small to mid-sized financial institutions face greater challenges than ever. In their annual report, the NCUA reported that US credit unions suffered 892 cyber incidents over a nine-month period between September 1, 2023, and May 1, 2024.  

From crippling cyber threats to the daunting task of regulatory compliance, strong identity security has never been more essential...or more complex. Let’s look at five major identity security challenges facing credit unions and how we can address them all in one solution. 

Five Identity Security Problems Plaguing Credit Unions

1. Analysis Paralysis: Where Do We Even Begin?

The job is never done. You know your IAM needs an overhaul. You're aware of the rising cyber risks and the need for digital transformation. But where do you start? HOW do you start the process of getting from where you are to where you need to be? The sheer volume of potential upgrades and security measures can lead to analysis paralysis. This constant state of planning without action can leave you exposed. 

2. Lack of Financial Capital for Security Investments: A Dangerous Gamble

The old adage "more money, more problems" doesn't hold true when it comes to cybersecurity. In reality, "less money, more problems" is far more accurate. Like predators in the wild, cybercriminals aren’t going after the strongest, most fortified targets. They will focus their efforts on under-resourced organizations, knowing they lack the robust defenses of larger institutions.

3. Lack of Human Capital: The Talent Drought is Real

The global shortage of IT professionals is even more dire for smaller organizations. With limited resources, they struggle to compete with larger corporations and tech giants for top talent. This talent gap leaves them vulnerable, as in-house teams are often stretched too thin and lack the specialized expertise needed to combat evolving threats.

4. Challenging Compliance Requirements: A Regulatory Maze

Navigating the landscape of financial regulations is also daunting. From NCUA guidelines to evolving data privacy laws, credit unions must maintain strict compliance.  Without visibility and robust reporting, the complexity of these requirements can be overwhelming, leading to potential penalties and reputational damage.

5. Inability to Innovate or Scale: Falling Behind the Curve

With crypto wallets, online banking, fin-techs, and digital banking options available, today’s community-based financial institutions have to compete to survive. Whether it’s self-service user account management or new services, credit unions need to be able to adapt and evolve. Without the resources needed to innovate or scale their security operations, credit unions risk losing customers to more agile competitors. 

Problems Solved: Identity Security as a Service (ISaaS) 

From the implementation of role-based access controls to automation of tedious manual processes, ISaaS offers compelling benefits for organizations who seek to achieve enterprise-level security tailored for its needs and budget. 

• Boost Operational Efficiency and Reduce Labor Costs
  1. Free your internal Security Operations Center (SOC) from the complexities of identity management, allowing them to concentrate on core strategic initiatives.
  2. Eliminate the need for expensive in-house security specialist recruitment and training, significantly reducing overhead.
• Optimize Budget Allocation and Minimize Capital Expenditure
  1. Transition from large upfront capital investments in security infrastructure to predictable, manageable operational expenses.
  2. Avoid ongoing maintenance and upgrade costs associated with traditional on-prem security solutions.
• Accelerate Compliance and Mitigate Regulatory Risks
  1. Streamline and automate compliance processes, reducing the burden of ever-evolving regulatory requirements and minimizing the risk of costly penalties.
  2. Reduce the time and resources spent on audits.
• Reduce Total Cost of Ownership and Accelerate Time to Value
  1. By bundling services, ISaaS reduces the total cost of ownership by as much as 60%. 
  2. Reach your security goals and targets in weeks, not months or years. 
• Enable Scalable Growth and Foster Innovation:
  1. Adapt and scale your security infrastructure effortlessly to meet evolving business needs and support future growth initiatives.
  2. Leverage cutting-edge security technologies without the burden of complex implementations, fostering a culture of innovation.

KeyData Cyber’s ISaaS: Enterprise Level Security Priced for Small Business 

Credit unions are facing unprecedented challenges, but they are not insurmountable. It's time to move beyond analysis paralysis and take decisive action. The future of community finance depends on it.

Are you ready to transform your credit union's security? Contact us to learn how KeyData Cyber’s ISaaS can help you future-proof your identity security today.