“Encryption at rest can make a huge difference in security, and we believe it should be the industry standard,” Daly said. “When you think about these cyber crimes, it adds up to a phenomenal amount of money to recover from lost business, reputation damage, regulatory bear down and customer claims – not to mention the toll on victims. With the right security protocol, it very likely could have prevented or mitigated much of the damage at retailers.”

Daly said the firm, along with some of its collaboration partners, is starting discussions with financial institutions and other companies that handle PII, as well as trade groups and regulators, to urge adoption of encryption-at-rest practices, either independently or through Virtual StrongBox.

“The reality is that the old way of storing data, especially PII, is simply unacceptable,” Daly said. “As an industry, we have to make changes. Financial institutions that sit back are going to lose because their customers will learn about competitors that offer this higher level of security and they'll demand it. They may want an assurance similar to the 'Good Housekeeping Seal of Approval.'”

CU*Answers recognized that secure online storage controlled by the member created a new opportunity to help its 200+ clients automate processes, reduce manual intervention, enhance member services, and achieve significant cost reductions.

As a first step, the two companies are creating a direct interface between CU*Answers' Imaging Solutions products and Virtual StrongBox to automate the exchange of documents and information between the core system, credit union and its members, delivered securely to and from each other via their individual My Virtual Strongbox space.

“Virtual secure mailboxes are a pending new core competency for credit union operations. They can modernize technology, workflow, and automate document transfer and exchanges that will one day be the mandate of the consumer experience, not just an option for the fringe,” Randy Karnes, president/CEO of CU*Answers, said. “The embedded capability to meet this expectation in software solutions will only increase in a mobile technology world driven by younger members.”

Daly added, “We look forward to delivering on the combined vision of the CU*Answers' network and Virtual StrongBox technology to find new ways to modernize banking technology and image workflow.”

Virtual StrongBox's flagship product, My Virtual StrongBox, safeguards the personal documents of more than 3.5 million people. Through customers' relationships with nearly 260 financial institutions, wealth management firms and insurance companies, My Virtual StrongBox protects their deeds, wills, trusts, tax files, insurance policies and other important papers.

“It's energizing to think about what we'll accomplish working together: Offering client credit unions a tangible, much-needed benefit for their consumer-owners that was conceived and built from within our own industry. I think it may transform how sensitive information is stored,” Karnes added.