At the CUNA CFO Council's annualconference, sessions focused on the Financial Accounting Standards Board's long-anticipated CurrentExpected Credit Loss guidelines, the NCUA's risk-based capitalrule and liquidity management.

One session even taught social skills to improve networking,affectionately dubbed Networking for Nerds by attendees at the NewOrleans event. In my experience, this group networks just fine,thank you very much – especially in New Orleans, where thebartenders are heavy handed and inhibitions quickly melt away. Itwas a good idea, and I regret that my flight forced me to leavebefore I could peek in and see if it was well attended.

However, what made this year's conference different were thesessions devoted to technology.

My favorite session focused on the cybersecurity risk memberspresent to a credit union by professional hacker Jim Stickley. TheSan Diego-based cybersecurity expert demonstrated different wayscredit union data can be breached; and by demonstrated, I mean heactually did it and replayed screen capture video.

For starters, Stickley wrote a malicious app and make itavailable for download in Apple or Android stores. The app doesn'tcontain malicious code, but it does require the user to make allinformation on the device available to the app. With the rightcombination of intrusive information requirements, Stickleydemonstrated he was able to access the user's email and in turn gain control of bank andonline retail accounts. Control over email settings allowed himto hide and reroute email warnings from banking providers thatsomeone had changed user that passwords and other information.

Stickley also pressed the point that the days of a hackerphysically accessing systems are about over. Most hackers use toolslike apps that work 24/7 and deliver more bang for the buck.

Stickley also utilized a mobile app to gain access to a networkvia the building's Wi-Fi service. His easy access quickly rebuffedthe notion that credit unions can prevent breaches by keepingmobile devices off network servers. Stickley handily bipassed wifisecurity, quickly taking over control of a desktop PC on thenetwork. He referred to mobile devices as the new PCs, cautioningthat despite security issues, they are quickly becoming standardtools in the workplace.

Why should CFOs care about cybersecurity? Breaches cost creditunions money, Stickley said.

And, IT frequently falls under a CFO's responsibilities incredit unions.

A less sobering presentation came from BillGoedken, president/CEO of technology-focused financial servicesstrategy firm idea5. You may remember Goedken as the formerpresident of ProfitStar; he was pretty high profile back in the1990s when his asset-liability management and profitabilitysoftware was the hot new thing, eventually building up more than2,000 clients before being acquired by Jack Henry in 2005.

Goedken's presentation showed attendees how to use big data toimprove credit union strategy and decision making. Marketing was anobvious beneficiary, with Goedken's example of Facebook data onengagements driving home his point. Facebook has applied for abanking license, and could easily market lifestyle products tothose members. Imagine the marketplace advantage that dataprovides!

He also shared a case study of a credit union in whichmanagement was resisting the board of directors' recommendation tobuild a new brick and mortar branch. Credit union management feltstrongly that this was not the best direction for the future of thecooperative, but lacked credit union-specific supporting data.

So, the credit union turned to big data. Surprisingly, it showedthat not even the 55-and-up demographic favored branching as itsfirst choice of delivery channel, according to a 2012 AmericanBankers Association (I know, hold your nose but pay attention,because it's good data). Instead, 27% of AARP-eligible memberspreferred online banking, and only 25% preferred branches. Anearlier 2008 survey showed 42% of the same age group preferredbranches to only 15% that preferred the internet.

Interestingly, phone and snail mail service showed increasedpreference in the survey while ATMs' popularity sagged.

Statistics regarding preferred access channels for youngergenerations showed even greater preference for electronic access.Overall, branches still held on to the No. 2 spot, with a majorityresponding they want their financial institution to have somephysical location open to the public somewhere. However, the trendwas obvious: digital is the future, and if the future isn't here,it's rapidly approaching.

Armed with this data, credit union management negotiated withthe board to build a much smaller brick and mortar branch, andfurther convinced the board to close a nonperforming branch. Thecredit union saved an estimated $300,000 in the first year and $1million over three years. Those savings will be redirected towardimproving digital delivery channels.

A session exploring the future of mobile payments andthird-party provider threats to credit unions (and theirinterchange income), and another on whether credit union decisionmaking is driven by data or dogma also focused on tech themes.

Technology no longer is the sole domain of IT departments. Itspread to operations, then communications and lending. Now,according to the CFO Council's agenda, it's a cornerstone ofeffective financial management practice.