FEBRUARY 2016 NUMBER 2 WWW.NCUA.GOV
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2 Chairman’s Corner
You’ve Got to Be in It
to Win It!
3 America Saves and
Military Saves Week
Runs February 22–27
4 Board Perspective
Creating a Fair and
5 NCUA Invites Comments
on Methodologies for
Overhead Transfer Rate,
6 What to Know If Your
Credit Union Holds
7 2016 Examinations Will
Focus on Greatest
9 2016 Regulatory Review
List Now Available on
10 Deadline to Register
for the CUSO Registry
Is March 31
Could the next generation of ATMs be here?
One financial technology services firm is
rolling out a new system in 2016 that will
allow consumers to use an ATM without an
ATM or debit card. Here’s how it will work:
n The consumer contacts his or her financial
institution, which uses its security checks
to confirm the consumer’s identity.
n The consumer receives an 11-digit code
from the financial institution. The
consumer is then transferred to a system
that provides a personal identification
number, or PIN.
n The consumer can then go to an ATM.
Instead of inserting his or her card, there
will be a button on the screen where he
or she can then enter the 11-digit number
and corresponding PIN.
Once consumers complete those steps, they
will then be given one-time access to their
account, just as if they had an ATM or
This technology has been successfully tested
and is expected to become more widely
available later in the year.
Does this mean we will see a phasing out of
plastic cards at ATMs? Maybe.
continues to be an
As we know, more
are issuing EMV
cards to replace vulnerable magnetic stripe
cards. Even with this change, EMV cards can
be skimmed with the right reader. And these
devices are fairly easy to acquire.
The reality is smartphones may end up being
the way most consumers gain access to
ATMs in the future. This change could save
financial institutions the expense of issuing
cards—especially when they have to be
replaced when a security breach occurs.
With no card involved, it becomes more
difficult for thieves to utilize skimming devices
that capture account information from cards.
Service providers are already testing the use of
smartphones to access ATMs.
However, the struggle to outsmart criminals
remains difficult, because they’re determined
to find any weaknesses in technology they can
exploit. In the process of building smarter and
more secured systems, we may be seeing how
consumers access their money evolve in ways
never considered just a few years ago.
Office of National Examinations
and Supervision Report
ARE CARD-FREE ATMS AROUND