Credit Union tech-talk News

October 6 - October 10, 2008

• General News
• Hardware News
• Software Updates
• ATMs/Kiosks
• Biometric Digest Highlights
• Wireless World
• Security Section
• Leaders Roundtable
• Technology and Marketing
• Online Banking/E-Commerce/
  Website Design
• Internet Access
• Call Centers
• Conferences

* Seattle Metropolitan CU Selects Open Solutions
* R.C. Olmstead signs with HSA Clearing Corp to Enhance HSA program
* Anheuser-Busch Employees CU Chooses UltiPro Workplace Management Solution 
* Intuit Ships Online Financial Management Technology

Open Solutions, a leading provider of integrated, enterprise-wide data processing technologies for credit unions throughout the United States, Canada and other international markets, announced Seattle Metropolitan Credit Union has selected The Complete Credit Union Solution: DNA, an enhanced relational data processing platform using .NET technology, to handle the credit union’s current and long-term information technology operations. In addition to The Complete Credit Union Solution, Seattle Metropolitan will also implement Open Solutions’ StreamLend Velocity, cView ReportWizard, Financial Accounting Suite and the Workload Automation Suite provided by alliance partner UC4 (formerly AppWorx). 

R. C. Olmstead, a leading core processor to credit unions across the country for over 30 years, has signed with HSA Clearing Corp. to offer the educational component to credit unions offering Health Savings Accounts to their members. HSA Clearing Corp offers turnkey solutions for financial institutions nationwide to initiate and administrate Health Savings Accounts. 

St. Louis-based Anheuser-Busch Employees Credit Union has selected Ultimate Software's UltiPro Workplace to manage its human resource and payroll processes. Accessed through a Web portal, UltiPro Workplace delivers tools for employee management, including human resources, payroll, benefits administration, and employee communication.

Digital Insight, a unit of Intuit, has released FinanceWorks. The online financial management solution, powered by Quicken, makes it possible for consumers to manage accounts across more than 5,000 financial institutions and credit card sites, ensure bills are paid on time regardless of the method they use to pay them, and see where their money is going, including future transactions. This is all done via the credit union's website.

Hardware News

Enterprises can now buy a networking appliance from Cisco Systems that runs basic Windows Server 2008 functions, a product designed for use in branch offices. With the new product, called Windows Server on WAAS, branch offices can host services locally including Active Directory, Microsoft Print Services, Microsoft Domain Name System Server and Microsoft Dynamic Host Configuration Protocol Server. The alternative for many organizations is either to use a full Windows Server at every branch, which could be overkill, or run all functionality centrally, which could result in slow performance for branch workers. Pricing for Windows Server on WAAS starts at $10,000, including the hardware and the software license. Other configurations with more storage are also available. 

Eaton announced the introduction of the Eaton 9135 UPS (uninterruptible power system). The new 5 and 6 kVA UPSs deliver up to 6 kVA of clean double-conversion power in a slim 3U (5.14 inches) enclosure. Eaton claims that the new models operate at up to 97 percent efficiency in high efficiency mode and up to 91 percent in double conversion mode. The 9135 also provides hot-swappable battery and control modules that allow users to quickly remove and replace power components without powering down the UPS or interrupting power to the connected equipment. The 9135 models have a two-year limited factory warranty, an optional Warranty+ extended warranty, optional Flex and PowerTrust on-site service contracts, and a $250,000 load protection guarantee. 

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ATMs/Kiosks

Diebold recently received seven patents for its Campaign Office software. Many of Campaign Office's unique features, such as its ability to identify individual users to deliver targeted communications and its delivery of customized data via multiple graphical screens, are protected through the patents. One of four integral components of the Agilis Office Suite family of software solutions, Campaign Office allows for the delivery of one-to-one marketing messages across an ATM network. 

Credit Union 24, the largest credit union-owned ATM and point-of-sale (POS) network in the U.S., announced that credit unions will be able to offer more than 50,000 surcharge-free ATMs to members and prospective members through Credit Union 24’s CU HERE surcharge-free programs. The addition of some 5,500 ATM locations at 7-Eleven® stores to the Allpoint Network, one of Credit Union 24’s surcharge-free partners, boosts the surcharge-free ATM access available to credit unions to more than three times that of the largest bank-controlled ATM network.

One of the most well-known ATM hackers in the world was recently arrested. He is an expert on skimmers and how to install these rogue card-reading devices. He offers some tips on how to fight back against fraudsters - we will cover them in the November issue of Credit Union tech-talk - subscribe now.

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UPEK, a leader in biometric fingerprint security solutions, announced the general availability of the Eikon To Go; a portable version of their Eikon Digital Privacy Manager. The Eikon To Go is a truly portable fingerprint reader that utilizes the same software and sensor technology currently shipping on millions of notebook PCs today. Eikon To Go helps Windows users lock their computer, remember passwords, encrypt files with sensitive data, and launch applications all with the swipe of a finger. 

GEICO Federal Credit Union, headquartered in Chevy Chase, Maryland, recently implemented US Biometrics' AccessQ system for controlling physical access to various entrances with fingerprint biometrics. US Biometrics worked with GEICO to specify and implement the hardware and software system so as to biometrically control strategic entrances within their facility.  

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The ATM Industry Association has launched Best Practices for Mobile Device Banking Security. The new best practice manual covers SIM card security, mobile-software security, enrollment, registration, member access to banking on mobile devices, security and privacy of member details/data, member education on the mobile phone as an instrument of value, dealing with lost or stolen mobile phones/devices, security of software and transmission to financial services device (e.g. ATM), defining strengths and vulnerabilities of each mobile phone channel/protocol, and outlining the regulatory framework for mobile banking. The ATMIA estimates that as much as half of the world's population may now own a mobile phone, with about 80 percent of the U.S. population thought to own one. 

RBC Royal Bank announced that it is testing a new service, RBC Mobex Mobile Payment Service, that "allows users to easily and securely send and receive money instantly using a text message on their mobile phone." Users simply send a text message to RBC Mobex with the dollar amount and the recipient's cell phone number. Funds are then taken from the sender's Mobex account and moved to the recipient's Mobex account. The recipient also receives an instant text message on their cell phone to let them know when the money has been sent to them. Amounts of up to $100 per day can be sent to anyone with a mobile phone serviced by any Canadian wireless carrier, even if they do not have an RBC Mobex account. Recipients just need to register for the payment service to access their funds. The RBC Mobex account is a stored value account and enrollment is through the RBC Mobex website, where money can be loaded from any account with any financial institution in Canada, or by using a credit card. 

Just about everyone has heard of Amazon's One Click online purchasing technology, and now a Miami and Copenhagen-based company is coming out with a one-click mobile phone pay system. We will cover it in the November issue of Credit Union tech-talk - subscribe today.

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According to a recent estimate from Verizon, 90 percent of successful exploits these days involve vulnerabilities for which a patch has been available for six months or longer. Verizon notes in its 2008 Data Breach Investigations Report that "also worthy of mention is that no breaches were caused by exploits of vulnerabilities patched within a month or less of the attack." They say that the first step in patch management is inventory management - you need a complete inventory of all the systems on your network. Beyond inventory, the next step is having a process to install and manage patches, backed by the appropriate software.

Kount has announced that it has received a US patent for its proxy piercing technology that "determines the accurate geolocation of computers being used to initiate online transactions, providing methods for determining the true physical location of the customer's computer, even if an anonymous proxy is being used." A Kount spokesperson said that "Kount has the ability to see though anonymous proxies and detect the true location of the computer submitting an online transaction."

Sophisticated targeted attacks often begin with clever reconnaissance, both online and offline. By using a combination of offline and online activity, the attacker is trying to stay under the radar of forensics or other incident tracking tools. We will cover multichannel-type attacks in the November issue of Credit Union tech-talk - subscribe now. 

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Core Systems:

Core Systems – Collaborating to Better Serve Members

COCC - http://www.cocc.com Read Joe Trafton's comments: http://www.cunews.com/roundtable/COCC.pdf

CU*Answers - http://www.cuanswers.com Read Randy Karnes' comments: http://www.cunews.com/roundtable/CUAnswers.pdf

Enhanced Software Products - http://www.espsolution.net Read Matt Lefler's comments:    http://www.cunews.com/roundtable/ESP.pdf

Fidelity Information Services - http://www.fidelityinfoservices.com Read John Schooler's comments: http://www.cunews.com/roundtable/FIS.pdf

Fiserv - http://www.cu7.fiserv.com Read John Edwards' comments:     http://www.cunews.com/roundtable/Fiserv_XP.pdf

Fiserv - http://www.cu7.fiserv.com Read Jay Slavin's comments:     http://www.cunews.com/roundtable/Fiserv_Galaxy.pdf

Harland Financial Solutions - http://www.harlandfinancialsolutions.com Read David McConney's comments: http://www.cunews.com/roundtable/HFS.pdf

Open Solutions - http://www.opensolutions.com Read Michael Nicastro's comments: http://www.cunews.com/roundtable/OSI.pdf

ShareOne - http://www.shareone.com Read Daryl Tanner's comments: http://www.cunews.com/roundtable/ShareOne.pdf

Software and Management Associates - http://www.smausa.com Read Michael W. Taylor's comments: http://www.cunews.com/roundtable/SMA.pdf

Symitar - http://www.symitar.com Read Kathy Hooker Burress' comments: http://www.cunews.com/roundtable/Symitar.pdf

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For credit card issuers, transaction volume is out and customer loyalty is in, according to Javelin Strategy & Research. The research firm believes that issuers should work hard to improve customer loyalty in order to increase the percentage of purchases per cardholder. A couple of loyalty-building suggestions include adding online financial management tools and giving card holders more tools to fight fraud. Other areas to explore include person-to-person payments, alternative lines of credit and expedited bill payment services 

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A new report from Aite Group states that the case for introducing card-based bill payment via online banking is not in interchange revenues but in targeting highly engaged consumers. As the growth rate for traditional online bill payment slows, Aite Group believes that credit unions will find their highest rate of growth in online bill pay from card-based payers. The opportunity for credit unions lies in attracting a segment of valuable consumers to their own sites, instead of going directly to biller sites. Aite Group concludes that the benefits of enabling card-based payments outweigh the negatives or obstacles.

According to Cisco, the increasing popularity of online payment providers like PayPal and Amazon Checkout, combined with the emergence of mobile commerce, threatens to leave financial institutions lagging in the e-commerce world. Cisco says payments represent 35% to 45% of banking revenue and 30%-40% of operating profits but warns that high-speed networks and mobile devices are opening up opportunities for new players to bypass the existing value chain. The vendor predicts that the next wave of commerce evolution will see physical retail exploring business models introduced in virtual commerce. This "connected commerce" will see consumers using portable, networked devices and merchants using IP point-of-sale systems for physical world shopping. 

A new peer-to-peer (P2P) lending platform called Loanio has launched in the US which is aimed at customers with poor credit records, such as sub-prime borrowers. Borrowers with poor or no credit scores will be allowed to participate on the p2p lending platform by using co-borrowers or guarantors. Loanio says it will also enable lenders to obtain more reliable data on borrowers through a "platinum verification service". The service means borrowers can opt to have their financial profiles checked by the site, so lenders don't have to rely on self reported data. Earlier this year, consultancy Gartner published research predicting that social banking platforms - such as peer-to-peer (P2P) lending networks like Zopa and Prosper - will grow to control 10% of the worldwide market for retail lending and financial planning by 2010. 

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Digium, creator of the Asterisk open source telephony engine and toolkit, announced that its Switchvox SMB 3.5 has received the “Best of Show Award” in the “Best of Open Source” category at the INTERNET TELEPHONY Conference. Switchvox SMB 3.5 is the latest version of the Asterisk-based IP PBX unified communications (UC) software telephony system. Key features of Switchvox 3.5 include multi-level administration (unlimited levels) with built in phone configuration tools facilitating provisioning of Polycom phones in minutes; dial by name directory similar to that of cell phones; custom time frames; upgradeable hardware; advanced diagnostics; IP phone diagnostic tool; VoIP provider diagnostic tool; and international analog line support.

TANDBERG has rolled out its Telepresence T3, a telepresence solution that delivers an "across the table" meeting experience. The TANDBERG Telepresence T3 is interoperable with all standards-based PC, desktop and room video systems, including HD systems. The firm says that the native interoperability of the Telepresence T3 means participants can connect easily when and where they need to without being locked into a specific system, network or bandwidth.

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Face to face coaching can be valuable, but it can also be difficult for both supervisors and agents. That is because if the coach speaks first and critiques the call, the agent may become defensive or passive. Some contact centers avoid this by using a technique where the agent self diagnoses their call, identifying their own strengths and opportunities. This allows the agent to identify their own areas that need improvement. Coaches can then provide their view of the call, which often entails an elaboration on the points they have already been brought up. Some supervisors then ask what the agent would have done differently had they had a chance to do the call again, and conclude by discussing various options and ideas for improvements.

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Catch Tom and Bill Rogers, Associate Editor of Credit Union tech-talk at the following conferences in 2008:

October 15-18, Las Vegas - Firefighters' National Credit Union Summit

November 13-15, New Orleans - Credit Union InfoTech Conference

June 4-5, Lake Las Vegas - Credit Union InfoSecurity Conference

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