Financial literacy and cybersecurity are two critical topics often discussed separately, but they are more closely linked than you might think. In today’s digital age, it’s vital to recognize the connection between these two areas and understand why it matters.
Financial literacy involves having the knowledge and skills needed to make informed financial decisions. On the other hand, cybersecurity refers to measures taken to protect computer systems from unauthorized access or attacks. Both areas have become increasingly important as technology continues to advance, and our lives become more connected online.
Re-orienting Your Board
The focus of cybersecurity in the context of financial literacy should start by right-sizing the cybersecurity conversations your board of directors is having. Less than three-quarters of board members are on the same page as their CISOs, and that can create big issues in the continuity of cybersecurity features and protocols.
Oversight of your cybersecurity program is a crucial step in ensuring that you can keep your members’ financial records safe, no matter what digital threat pops up.
There is, unfortunately, no way for any person or business to be 100% protected from cyber threats anymore. And that’s why these conversations need to be more centered around your cybersecurity program and its resilience, rather than just limiting it to protection items.
In the same way that we have to assume that credit union members will withdraw funds and apply for loans, we should also be working as if we know that cyberattacks are and will be inevitable at some point.
It’s more than just educating your staff on creating and maintaining high-quality passwords (though those are still vital). Response and recovery are just as important as protection and prevention.
Online Banking Has Married Financial Literacy and Cybersecurity
The number of bank and credit union members who use digital and online banking services grows monthly. And because of that, cybersecurity is now an inextricable part of financial literacy as a whole.
In the same way that home security has progressed from “Don’t tell everyone where you hide your spare key” to something like “Don’t tell everyone what your garage code or home security system disarming code is,” you’ll find that financial literacy means protecting your money from people and organizations that are looking to gain unlawful access to your online accounts. These accounts can include third-party credit cards, digital payment apps and cards like PayPal and Zelle, and more.
Because online banking services offer a higher standard of ease and convenience, as well as lowering wait times on things like direct deposits and other transfers, you are now responsible for locking your members’ digital safe.
Financial institutions are one of the 5 industries most at risk of a cyberattack. And many of these attacks are successful as a result of user error – but what does that mean for your staff and members?
It means that financial literacy courses should include a unit on basic cybersecurity principles, at a minimum. When you are assisting your members with online account opening or directing them to your diverse collection of online self-service forms, you should also be knowledgeable enough about cybersecurity best practices to share these insights with everyone who asks about online services.
Cyberattacks Can Devastate the Average American
Financial literacy is about learning how to use your money to prepare for the future – both the good and the bad. Nearly 75% of Americans are in some form of debt, and nearly 80% are living paycheck-to-paycheck.
Debt itself isn’t inherently bad – it’s often a great way to build equity, grow a business, and create momentum for the future. But too much debt and too little protection of it can create a bad outcome for your members. If there is a cyberattack that disrupts your members’ ability to access their funds for even a few days, it can have devastating ripple effects.
Learning to enhance your members’ financial literacy and wellness without addressing cybersecurity best practices and concerns can create a dangerous educational gap.
Financial literacy and cybersecurity are both, at their core, the means by which your credit union and its members work together to ensure that everyone’s financial future is brighter.
Get the Tools to Create Positive Momentum in Financial Literacy and Cybersecurity
Financial literacy, at its core, is giving your members the ability to be the agents of their own financial growth journey. It means giving them the tools and foundation upon which they can build their future. That future looks different for everyone, but we all start in a similar place: either we inherit a positive financial situation and want to learn how to keep it positive, or we inherit a negative financial situation and we want those tools to help us make our way to that positive place.
Those tools are vast and varied. From educational resources to coaching, consulting sessions, and even digital tools like IMSI’s online self-service forms.
These forms can be customized to reflect your credit union and its member base. So what are you waiting for? Let’s enhance your members’ financial literacy and cybersecurity knowledge together!
