By Sam | December 6, 2012

How Important is Online Banking for a Credit Union During a Disaster?

Online banking has become the new “PFI” (Primary Financial Institution) indicator for most Credit Unions today. Members who participate in online banking often have a higher product penetration ratio as opposed to non-online bankers. What started as a convenience product has quickly grown to be an “expected” service – one that is available 24/7/365! Failing to identify Online Banking as a critical process for recovery can hinder your recovery effort in many ways. Consider the following to effectively assess your online banking recovery strategies.

Traffic Control

During a crisis, the first thing your members will want to do is “see” their account. If the event is devastating such as the recent Hurricane Sandy event, the loss of the physical facility can strike panic in your membership. Some may think – the branch is gone, is my money gone? During a crisis it is imperative to provide alternative delivery channels to your members. When your headquarters or branch suffers damage that renders the facility uninhabitable, online banking can and should be used to divert traffic, provide continued member service and to provide relief to the remaining operational facilities. Failing to do so diminishes member and staff confidence.

Member Confidence

While we’re on the subject of confidence, think back to the last time your online banking system was unavailable. Call center traffic went through the roof right? Depending on the number of online bankers you have enrolled, a simple downtime can increase call center volume significantly. And it’s not just about access to their accounts. Today’s online banking members understand technology more so than any other generation in the past. Confidence erodes quickly with thoughts of:

• Will my money be available when I need it?
• Will my bills get paid on time?
• Was the system hacked and now all my financial data is compromised?
• Why didn’t my Credit Union take protective measures against this threat?
• Hmmmm… Maybe I should start looking at other financial institutions…

A bit dramatic I know – however, depending on the length of the downtime, the tolerance level of your membership will decrease over time. Look closely at your recovery time objectives (RTO) for your online banking services. Do they meet the needs of your members and reflect the true expectations? If not, redesign and plan now before another crisis hits.

Systems Recovery

The online banking infrastructure (hardware, software and communications) must be configured to eliminate single points of failure and mitigate against worst case scenario events. Do you have the resources to recover critical delivery channels AND recover your host AND move departments to alternate locations AND ensure the safety of your staff? You see how the IT level of effort snowballs during a crisis? Best practices often include having your critical servers such as those required for online banking hosted by a DR/BCP provider at a hot/warm site.

Have you reviewed your DR hot/warm site strategy lately? Do you need help with rolling out a BCP that focuses on people, processes and technologies? For more information e-mail us at info@ongoingoperations.com or fill out the short form below and a member of our team will contact you shortly.