Credit Union tech-talk News

March 10 - March 14, 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

* Open Solutions Announces DNA Core System
* Harland Financial Solutions Rolls Out Mobile Banking
* Luso FCU Selects COCC
* Fiserv Announces CU7
* Share One Signs Members Trust FCU 

Open Solutions, a leading provider of integrated enabling technologies for credit unions across the United States, Canada and other international markets, announced the launch of its latest core processing solution. Enhanced by Open Solutions’ advanced open platform and using .NET technology, the new core release - The Complete Credit Union Solution: DNA - capitalizes on the strength of Open Solutions’ universal data model and design and its client-centric processes, while enhancing workflow, flexibility, navigation and productivity. The underlying functionality of the system, however, remains unchanged providing clients with an updated user interface that improves workflow and provides easier access to information.

Harland Financial Solutions announced the launch of Cavion Mobile Banking Professional, a web-based mobile banking solution that enables credit unions to offer account access and transactions to members via mobile devices. The application allows members to perform such operations as viewing balances and cleared check images, account to account transfers, and bill payment from a secure interface – all in real-time via core system integration. It also provides real-time integrated account alerts, stop payments for checks or the closest ATM location.

COCC, a leading provider of next generation technology services for credit unions, announced that Luso Federal Credit Union has selected the company for a long term technology partnership. Luso Federal’s conversion to COCC will enable the $147M credit union headquartered in Ludlow, Massachusetts to expand its product line to accommodate a dramatic increase in its field of membership.

Fiserv is launching a comprehensive credit union campaign, called “CU7,” which accelerates Fiserv’s 2.0 corporate strategy in the credit union market. This new strategic direction unifies the seven companies that comprise the division: AFTECH, CUSA, Galaxy, IntegraSys, Summit, USERS, and XP Systems.

Share One, a CUSO which has a client base of credit unions with assets ranging up to $1 billion, announced that Members Trust Federal Credit Union in Mason, Ohio has joined their family of credit union users. The credit union, which serves Luxottica Retail which is the parent company for LensCrafters, Sunglass Hut, Pearle Vision, and Sears Optical, will convert to Share One’s NewSolutions system this October.   

Hardware News

USB drives are convenient but inherently insecure. If you must carry confidential data on them, you will want to utilize a secure drive like the Corsair Flash Padlock. The Padlock looks like a traditional flash drive with a pull-off cap, except for the numeric keypad down the front. Corsair recommends at least four digits for your PIN, but the drive allows up to a 10-digit PIN. There's no need to lock the padlock once you remove it from your PC because it will lock itself after a few seconds. If you register your PIN at Corsair's site you can retrieve it from there if you forget it. A 1GB model runs about $30.

Getting locked in a vault is a scary situation for anyone to have to endure, so Diebold is trying to make this unlikely event a little easier with their "vault survival kit." The kit can be hung or placed inside a vault and includes:

• Shake flashlight
• Small claw hammer with a variety of screwdrivers in the handle
• #2 Phillips screwdriver
• Pliers
• Bottle of water
• Granola bar
• Packet of tissues
• Mini first aid kit
• Vault kit bag with emergency contact card
• Thermal blanket

If your credit union can't afford to build a dedicated computer room, there is an elegant alternative that is a server cabinet that looks like a cupboard. The vendor describes it as an "air-cooled acoustic server rack enclosure." We will tell you how it works in the April issue of Credit Union tech-talk - subscribe now.

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ATMs/Kiosks

Mesa, AZ-based Better ATM Services announced that it will be the exclusive ATM industry distributor for electroluminescent signage in the United States. The technology, dubbed Better ATM Lights, uses thin layers of conductive and non-conductive plastic to create a durable panel that becomes a print medium that lights up like a backlit sign. ATM deployers can configure them in frames, displays, custom-designed fixtures or even wrapped around hardware.

The $374M asset Paragon FCU is planning to partner with the Lower East Side People’s FCU, New York City’s largest community development credit union, in a new pilot project to test self-service kiosks in communities with high numbers of underserved and unbanked consumers. The new self-service kiosks have been designed to meet the financial needs of unbanked consumers, by providing automated transactional services, such as check cashing, bill pay, and remittances, enabling credit unions to provide these services at much lower costs.

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Nuance Communications, a provider of speech solutions, unveiled its Automatic Password Reset module which is designed to reduce the burden of time-consuming password resets on IT workers. With Nuance's Automatic Password Reset, employees can reset security passwords for any networked device or application by using their voice and the organization's telephony system. Automatic Password Reset utilizes voice biometrics that securely identifies the caller in the system and allows for computer and other passwords to be changed, thereby eliminating many of the simple calls to the help desk and allowing them to focus on more complex issues.

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Last week, Sprint followed rivals Verizon Wireless, AT&T and T-Mobile with a flat-rate voice plan costing about $100 per month. However, Sprint’s offering includes unlimited Web surfing, e-mail, text messaging, push-to-talk services and GPS navigation - services you pay extra for with the other carriers. Even businesses are interested in Sprint's offerings for disaster recovery purposes or for remote access in areas where DSL and cable services are either nonexistent or exorbitantly priced. While Verizon’s data plan includes terms and conditions that allow the carrier to limit data usage at will, Sprint's plan is truly unlimited and delivers about a T-1’s worth of bandwidth for under $100 per month.

PSCU Financial Services announced that it is the first CUSO to launch contactless cards for credit and debit platforms. Effective immediately, the CUSO’s member owners can begin ordering the new cards, which are available from both Visa and MasterCard. Issuance costs are higher than traditional cards because of the embedded chip, but PSCU says that expenses are offset by increased usage and higher interchange fees. PSCU also announced that they will partner with Financial Service Centers Cooperative to offer credit unions a mobile banking platform. The two CUSOs plan to begin offering mobile banking to credit unions as early as May 2008. Credit unions on the FSCC network will be able to use their existing shared branch interface to offer the mobile banking service.

New anti-fraud technology that combines location-based behavior analysis and cellular phone location analysis is coming to the US after a successful rollout overseas. The vendor says that their system does not require GPS-enabled phones or changes to existing card processing systems. Learn more about it in the April issue of Credit Union tech-talk - subscribe today.

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According to a recent Ernst & Young survey, regulators view anti-money laundering as one of the most important issues of our time, and the current emphasis on AML is here to stay. The financial services executives that responded to the survey said that the most critical factor to the success of an AML program is a risk-based approach. A risk-based approach allows financial institutions to focus their resources on the people, accounts and transactions that are most at risk of money laundering. While technology is critical in fighting money laundering, IT Departments are looking for ways to make AML alerts more specific and effective so that they can produce fewer suspicious activities reports (SARs), the report noted.

Mimosa Systems has launched software that allows IT Departments to identify potentially risky or illegal behavior in e-mail systems. The NearPoint Content Monitoring Option software identifies data leaks and can be set up to monitor all Exchange calendars, contacts, tasks and mailboxes. Three kinds of reports are available, including Compliance Reports, Review Action Reports and Policy Reports.

A Florida-based company has come out with a new low cost scanner for detecting counterfeit bills. They say that it is adept at recognizing the "super dollar," a convincing yet bogus $100 bill allegedly produced in North Korea. We will provide more details in the April issue of Credit Union tech-talk - subscribe now.

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Security:

Perimeter, Host and Endpoint Security – Finding the Right Mix

Arcot - http://www.arcot.com   Read R. 'Doc' Vaidhyanathan's comments: http://www.cunews.com/roundtable/Arcot.pdf

Astaro - http://www.astaro.com Read Alex Quinonez's comments: http://www.cunews.com/roundtable/Astaro.pdf

Code Green Networks - http://www.codegreennetworks.com   Read Brian Czarny's comments:   http://www.cunews.com/roundtable/CGN.pdf

Digital Resolve - http://www.digital-resolve.net Read Dennis Maicon's comments: http://www.cunews.com/roundtable/DigitalResolve.pdf

e-DMZ Security - http://www.e-dmzsecurity.com   Read Kris Zupan's comments:   http://www.cunews.com/roundtable/e-DMZ.pdf

Galaxy - http://www.fiserv-galaxy.com Read Vince Francone's comments:     http://www.cunews.com/roundtable/Galaxy.pdf

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

HEIT - http://www.goheit.com   Read Dan Holt's comments:   http://www.cunews.com/roundtable/Heit.pdf

Integrated Computer Solutions - http://www.icsinc.com   Read Stephen Goldsby's comments:   http://www.cunews.com/roundtable/ICS.pdf

MagTek - http://www.magtek.com   Read Kiran Gandhi's comments:   http://www.cunews.com/roundtable/MagTek.pdf

Netsecuris - http://www.netsecuris.com   Read Leonard Jacobs' comments:   http://www.cunews.com/roundtable/Netsecuris.pdf

Network Box - http://www.networkboxusa.com   Read Pierluigi Stella's comments:   http://www.cunews.com/roundtable/NetworkBox.pdf

Perimeter eSecurity - http://www.perimeterusa.com   Read Kevin Prince's comments:   http://www.cunews.com/roundtable/Perimeter.pdf

Proofpoint - http://www.proofpoint.com   Read Sandra Vaughan's comments:   http://www.cunews.com/roundtable/Proofpoint.pdf

Sydel - http://www.sydelcorp.com   Read Antonio Gonzalez's comments:   http://www.cunews.com/roundtable/Sydel.pdf

TraceSecurity - http://www.tracesecurity.com   Read Jim Stickley's comments:   http://www.cunews.com/roundtable/TraceSecurity.pdf

TriGeo Network Security - http://www.trigeo.com   Read Michelle Dickman's comments:   http://www.cunews.com/roundtable/TriGeo.pdf

ZixCorp - http://www.zixcorp.com   Read Dena Bauckman's comments:   http://www.cunews.com/roundtable/Zix.pdf

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Treasury Secretary Henry Paulson would like to get rid of the penny, but says it's not "politically doable." However, the administration would like to give the government the authority to change the metal content of all the nation's coins as a way to save money. That proposal, which was introduced in Congress last year, was prompted by the sharp jump in the price of copper and other metals in recent years. The Mint produces between 7 billion and 8 billion pennies annually and officials said if they were allowed to alter the metal content in just the penny and the nickel it could save taxpayers up to $100 million.

Cisco, Intel, Lenovo, Microsoft, Nexus IS, Plannar and Umpqua Bank have formed an Innovation Lab in Portland, Oregon. The lab is testing cutting edge technologies and unconventional marketing strategies on consumers who walk in off the street. Learn more about this project in the April issue of Credit Union tech-talk - subscribe now. 

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A new research report from the Aite Group says that free equipment that reads magnetic-ink-character-recognition lines while capturing check images could be the key for financial institutions to drive remote deposit capture adoption among small businesses. Fifty-eight percent of small businesses that are not using remote capture say free scanners from their FIs would make their adoption of the technology more likely. A leased scanner from the institution, or a list of approved scanner vendors from the same source, has much less appeal, garnering scores of 22% and 14%, respectively. “While their adoption of remote deposit is still somewhat low to date, small businesses are showing a keen interest in it despite its only recent availability to them,” states Aite analyst Christine Barry in the report.

Columbus, OH-based CME Federal Credit Union announced that they are implementing a host of Web 2.0 and social computing tools. Using a variety of Web 2.0 tools within the credit union, including NewsGator’s Social Sites along with Microsoft’s SharePoint Server 2007, CME will implement a new corporate-wide portal to better serve its members by enabling advanced, online collaboration between employees. The social network enables employees to see what colleagues are working on and make connections between people, departments and project groups.

CO-OP Financial Services is now offering credit unions a way for members to make check deposits from their homes and small businesses. With CO-OP My Deposit, credit union members can securely scan checks using just about any home scanner and Internet-connected computer. Once the check image is properly captured and displayed on the computer monitor, members click the "continue" tab on the screen. The check image is instantly submitted for processing and clearing, the deposit is processed real time through the CO-OP Next Generation Network (NGN) shared branching switch. Users can see the deposit instantly added to their current account balance and can void the original check, file it for a short period of time, and then destroy it.

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AT&T just announced a converged voice and data service called "Business in a Box" that, as a managed service, provides either hosted or premise-based options. The service targets organizations with between five and 50 employees, and clients can choose from AT&T's enterprise-grade Voice DNA (a hosted VoIP offer) or IP Flexible Reach (a SIP trunking service with integrated access for PBX and key systems) for their voice service. IP VPN services are provided through AT&T Managed Internet Service (MIS) Plus. The associated network services are connected with a T-1 WAN link and include options for a range of managed capabilities, such as managed security and call quality monitoring. An analog phone connection is included for emergency back-up. The network-attached box comes with:

* VoIP functionality through AT&T Voice DNA
* Internet access routing with built-in firewall protection
* VPN capabilities
* Wi-Fi data access capabilities
* LAN connectivity with Power over Ethernet connections

Meanwhile AT&T competitor Qwest Communications recently upgraded two of its hosted VoIP solutions under their OneFlex product suite. Business customers can get more out of their converged solution by being able run more concurrent voice calls over the same bandwidth using compression. In addition, enhanced features and tools made available via Qwest's Office Administrator portals allow customers to take advantage of applications that allow them to manage their communications to fit their business needs.

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According to a Cornerstone Advisors' survey, for every 100 teller transactions performed, there are 32 calls made to an IVR and 10 made to a live call center agent. More statistics from the consulting firm: there are 1.6 calls made to an IVR or a call center per checking account per month, which totals twice the number of Internet banking log-ins reported. Illustrating the importance of the IVR, 80% of those are to the IVR, and the firm says that this ratio hasn’t changed much since they began measuring calls.

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

March 20, Boston - Association of Credit Union Senior Officers

June 5-6, Las Vegas - Credit Union InfoSecurity Conference

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

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