Data Privacy & Security Risks and Rating Implications for Canadian Credit Unions

As traditional banking activities continue to migrate online and the use of artificial intelligence-based technologies gain prominence while dependence on third-party service providers increases, credit unions, like other financial institutions, are being exposed to higher levels of data privacy and security risks. While a serious breach in data privacy has negative implications for credit union franchises, it can also lead to direct financial consequences stemming from regulatory fines and lawsuits.