Credit Union Blockchain Initiative CULedger Teams With Autonomous Lendingbr>
Credit union industry blockchain initiative CULedger has teamed with Autonomous Lending, Inc. (ALI), a provider of digital credentials for lenders, to provide a streamlined, more secure method of authentication to credit unions and members throughout the lending process.
CULedger, a Credit Union Service Organization (CUSO) comprised of more than 30 credit unions and other industry organizations, focuses on delivering innovative applications to credit unions through its cross-border global distributed ledger platform. CULedger’s MyCUID credential allows credit unions to easily identify members when they login, walk-in or call-in to their credit union, eliminating the need for multiple login credentials.
Founded in 2019, ALI is developing a consumer-focused ecosystem that will allow lenders to issue verified credit credentials to consumers that can be executed anytime and anywhere the consumer demands. Its patent-pending verifiable credential technology allows lenders to issue Persistent Credit Credentials (PCC).
The partnership between CULedger and Autonomous Lending is designed to help credit unions remain competitive, relevant and technologically advanced.
“The process for obtaining a consumer loan from traditional lenders hasn’t changed much in the thirty years I have worked in the space,” said Michael Cochrum, Autonomous Lending CEO. “The process is wrought with friction and highly vulnerable to fraud, particularly in remote transaction scenarios, such as internet-based and mobile transactions. MyCUID combined with our Persistent Credit Credentials removes the friction and significantly reduces the fraud risk, transforming a timely process to as simple as pressing a few buttons via the credit union’s mobile app.”
According to research from MarketWatch, global FinTech growth will exceed 22% year-over-year through 2023. These FinTech companies have leveraged “AI, blockchain, cryptography, biometrics and identity management,” which allow them to engage customers without brick and mortar locations. Additionally, the Credit Union Tracker, a monthly resource by PSCU and PYMNTS that monitors credit union industry trends and changes, earlier this year found that 79% of credit union members reported that they would stray from their credit unions to access fast, convenient services from a FinTech provider.
“Our partnership also reduces the potential for human-based errors, which traditionally create vulnerabilities for both the credit union and member related to fraud or accidental errors,” said Julie Esser, chief experience officer of CULedger. “Both CULedger and Autonomous Lending’s solutions provide a unique benefit unlike any other in the industry by leveraging technology that creates an indisputable record of data that is secure, private and meets regulatory standards. This collaboration allows members to swiftly and securely use their credit union-provided digital credential to open accounts, transact and engage with their financial institution.”