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New Account Opening Online & CUDL Memberships...

  • 1.  New Account Opening Online & CUDL Memberships...

    Posted Sep 15, 2020 06:58 AM
    Our Bylaws indicate that credit union membership is approved by a "Membership Officer".  Policy defines who is designated as "Membership Officers".  The question is if using an auto-decisioning tool for  New Account openings online & CUDL Memberships, should the software be listed as a membership officer? Or should there be some kind of language that Membership Officers may use auto-decisioning software as a tool for approving memberships based on parameters set by a membership officer?    How does your credit union handle this situation in policy?

    Thanks for any input!

    Kris Pfister
    Executive Assistant
    Heartland Credit Union
    Hutchinson KS
    620.669.0177 x216

  • 2.  RE: New Account Opening Online & CUDL Memberships...

    Posted Sep 16, 2020 09:13 AM
    Hi Kris,

    Our bylaws are similar, so we always assign a "Membership Officer" to validate and sign off on all membership accounts opened online, so technically, all accounts are opened by a "human" Membership Officer and an adjustment to board policy wasn't necessary.  The "online new account" duties are periodically rotated to all Membership Officers throughout our Credit Union so everyone can stay familiar with the process and identify improvements when discovered.  We still have a "human" validate all the information reviewed (after the account is opened), and will subsequently close an account if we discovered fraud or inaccurate information.

    Hope this helps.

    Kent Lugrand BA, MBA
    InTouch CU
    Plano TX