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Q: How long did it take? issuing banks, but in exchange up for all banks. If this is card has suddenly exceeded its
our members come to us with something that can tackle limit because somebody got
From the initial introductions their savings deposits and for fraud, then it is going to be hold of their number and used
to deployment, it took about more profitable loans. It's a significant. Whether people is without their knowledge.
ten months. What we did was give-and-take situation and it like Wal-Mart or not, they are We are very conscious of the
to design the first card to be creates a lot of goodwill. We the facts of life here. A lot of fact that our members travel
very up-market. United are here to serve our members. people shop there and their constantly and they need our
Nations diplomats are frequent prices are very low. I think that service twenty-four hours a
travellers, so we included lots Q: What is the incentive if people go to Wal-Mart and day, seven days a week. We
of important amenities, like an of doing all this? they see a sign saying that you have evolved towards that
airline lounge pass, trip can use a card like this, they model. Our Card Services
cancellation insurance and I have been interviewed by a may say "what is this thing?" team offers 24/7 service.
benefits to make it very attrac- lot of people about the incenti- and go back to their bank and
tive and practical for them. ve of doing this and my ask if they will offer it. Q: What happens to a
The impact and acceptance response is always the same. person who has been a
have been phenomenal. We cater for people who have Q: So what does it feel victim of card fraud?
People at a lower financial these very unique life styles like to be a forerunner in
level started to ask for an that is part of their work. the US? If we detect it through our neu-
upgrade. Many people who These are people who may fly ral network, we reach out to
are willing to pay the US$50 out of a European capital and I was very surprised at the them. We will try to get them
annual fee as the price of air- end up living in a tent in a attention that we have recei- on the telephone and say: "We
port lounge passes alone are field. Their card must work ved-- that was really good. We see that most of your purcha-
higher, but they do not qualify when it needs to work. They do not do this primarily for ses have been in France and
for this card as it requires do not have the luxury of time profit. We do it for service, so sometimes in Africa, and all of
US$75,000 annual income. to be able to stop and ask for that felt particularly good. We a sudden somebody is buying
Our plan is to issue another help wherever they go. are not entirely profit-driven. a computer in the Philippines
card with the chip and PIN that Our priority is to be a constant with your card. Was this by
does not have that requirement Q: Do you feel any com- in our members' lives by any chance you?" If they say
sometime soon. petition from UBS in understanding their special no, we will take all of the
Geneva, for instance? needs and their families. Our necessary steps so that their
Q: Does it cost more to chip and PIN card is one more account is kept intact.
have the PIN card than We are not really trying to example of UNFCU's living
the regular one? compete with UBS because its service mission. Q: Are you looking for a
we have a different kind of bank's status in Europe?
The regular magnetic stripe niche. But the chip and PIN Q: What is your next pro-
card cost about 60 cents, the card is definitely something ject? No, we are operating to serve
other one costs about US$4. It that has received a lot of noti- the best needs of our mem-
is not only manufacturing but ce, and in general Europeans A debit card, which we plan to bers. In other words, technical-
it is personalization. The card like it. It is certainly more pre- upgrade with a chip in the ly on paper we are a US char-
has to go through a special valent in Canada, which adop- future. Everybody will have tered financial institution, but
process and as the chip is like ted the EMY standard. Last the option to get one. A debit since the UN is established in
a minicomputer, there has to year, the Criminal Intelligence card carries a lower daily avai- New York, we serve this group
be a process to bum the infor- Service in Canada reported lability on it. In other words, of people worldwide.
mation. that 2009 payment card fraud you can use it for obtaining UNFCU will continue to
losses decreased by approxi- cash and for small purchases, explore all options in order to
Q: Do these cards carry a mately CAN 12 Million pri- but it is only valid up to provide the best products and
higher fee? marily due to EMV, and this US$500 per day. But if they services for its members.
statistic was drawn ahead of want to carry out a big purcha-
It has a US$50 annual fee, so the ongoing nation wide rol- se, such as buying an airline Q: Your bank does seem
for us it is the only card that lout. This halted the trend of ticket, then they need a true to be in a very good
has an annual fee. If you com- increasing fraud losses in pre- credit card. shape.
pare it with certain PIN cards ceding years.
in Europe, they have a fee bet- Q: Apart from looking into Fortunately, our board of
ween US$100 to US$150. As Wal-Mart has said that they these kinds of business, directors and management
a comparison, we think it is believe in it so strongly that what else do you do? team have made very wise
great value: low annual per- they have implemented the decisions during the whole
centage rates; free rewards; terminals that can accept these We also have the regular financial crisis to protect
points towards travel; gift cards in all of their US stores. magnetic stripe cards and members' assets. They were-
cards; trip cancellation insu- I hope that this move by a big- fraud continues to be a main not involved in subprime
rance. box retailer will motivate US issue, to which we are making mortgages or any other exotic
banks to do more of this. Most inroads. We are cutting down products -- unlike many other
Because of our size, our credit people think that it's coming on fraud, mainly because we financial institution -- , so we
card programme is not as pro- over time and that it will be an do not want members to be came out of it very well.
fitable as American Express or evolving process, but the fraud disadvantaged. We do not
the card portfolios of large numbers in the US have crept want them to find that their
3 2010 Diva 39

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