Hello All!
I’m hearing from some folks here that many credit unions (medium to large included) are combing the Member Service and Loan functions – allowing one person to process, approve and disburse loans in addition to opening accounts – ‘one stop shopping’. I understand the desire for member convenience, but this creates significant issues for me….……..without some major compensating controls, I can see huge fraud potential.
I am feeling pretty confident that the folks are leaving a crucial piece of the control puzzle out of our discussions….so I am seeking feedback from the group on what compensating controls are in place for those who operate under this combined scenario as well as thoughts/ideas for those who do not. (I have been told by one employee that the CU they once worked for had a staff who reviewed 100% of loans processed and confirmed member identity – that could be a potentially large staff depending on loan volume). Again, thoughts/feedback greatly appreciated....if you are more comfortable emailing me directly my email address is heidin@fortbraggfcu.org
Heidi
