Credit Union tech-talk News

March 17 - March 21, 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

* LA Financial CU Deploys Symitar’s Episys
* Schools Financial CU Chooses MagTek for PIN Verification 
* Corporate FCU Chooses Open Solutions 
* CU*Answers Expands Product Offerings
* Harland Clarke Wins Prestigious Security Certification 

Jack Henry & Associates, a leading provider of integrated technology solutions and data processing services for financial institutions, announced that Episys, the core information processing platform provided by its Symitar division, has been selected by California-based LA Financial Credit Union. The credit union, which has more than $300 million in assets and approximately 35,000 members, will install Episys in-house. 

MagTek, a leading electronic payments technology, was recently selected by Schools Financial Credit Union to implement PIN selection and PIN verification at the teller window with MagTek’s IntelliCAT System. The IntelliCAT system offers multi-function capabilities for PIN-based transactions including first time PIN selection, RePIN of existing cards, and PIN verification for secure teller line identification. 

Mid-Atlantic Corporate Federal Credit Union, based in Middletown, Pa., recently selected Open Solutions’ latest version of its relational core data processing platform - The Complete Credit Union Solution:DNA to address its enterprise-wide data processing needs. Open Solutions is a leading provider of integrated enabling technologies for credit unions in the United States, Canada and other international markets. Mid-Atlantic will also be implementing Open Solutions’ full cView CRM suite, Digital Document Systems, Financial Accounting Suite including general ledger, and ProfitVision and the Channel Management Center Toolkit. 

CU*Answers announced it has partnered with Portfolio Defense Consulting Group, a recognized expert in consumer credit risk management and modeling. With data from clients utilizing its CU*BASE processing system, Portfolio Defense and CU*Answers developed 247 Lender, a custom empirical model that is based on an actual sampling of varying sized credit unions. CU*Answers also announced that Health Savings Accounts are now included as a standard feature within its core CU*BASE processing system. CU*Answers will not charge any extra fees for providing this popular module.

Verizon Business announced that Harland Clarke has earned the Verizon Business Security Management Program Cybertrust Certification, demonstrating Harland Clarke’s continued commitment to security assurance practices. This is the third consecutive year that the company has received the Cybertrust Enterprise Certification for its Dallas and San Antonio operations.   

Hardware News

Samsung announced its PrintCycle program for its printers where three years after your initial purchase date, they will replace your printer with an up-to-date unit of equal quality. The program runs on a trade-in-by-mail-in process, similar to a warranty replacement. The program also includes toner recycling, and the printers that currently fall under the PrintCycle umbrella are:

CLP - 610ND Color Laser Printer 
CLP - 660ND Color Laser Printer 
ML - 3471ND Monochrome Laser Printer 
ML - 2851ND Monochrome Laser Printer 
ML - 4551DR Monochrome Laser Printer 
CLX - 6210FX Color Multifunction Printer 
CLX - 6240FX Color Multifunction Printer

Iomega announced the third incarnation of its popular REV backup product, upping the capacity of the drives to an uncompressed 120GB each. The new drive is available in external USB 2.0 form, or as an internal SATA drive. The selling point of the REV concept is that it combines elements of hard disk technology, but in a removable format. This means that it is faster than tape, but as durable as a conventional hard disk or good optical system, while offering performance comparable to both. The company claims that cost of ownership is lower than buying removable hard drives because additional disks can be added at relatively low cost without buying a new drive.

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ATMs/Kiosks

Minnesota-based Larco Manufacturing has released a new USB Kiosk Security Mat product. Larco, a supplier of automatic door mats, handicap wall switches and industrial safety mats, says that their security mat eliminates unattended, unauthorized access to a kiosk using a pressure sensitive mat. Users must step on the mat in front of the machine to activate the system before log on is possible. Once a user steps off, Larco’s USB kiosk mat automatically logs the user off which prevents sensitive information from remaining on the computer screen for others to view.

Service Credit Union has rolled out its first FAST (Financial Access Service Teller) machine overseas. The international shared branching kiosk was provided by Tellagent LLC, a CUSO of Paragon FCU. The FAST machine functions as both a teller or a self-contained branch and offers cash withdrawals and deposits in both Euros and Dollars. 

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Between 2% and 5% of the general population has some physical limitation that hinders fingerprint imaging. Fingertips also become dirty, oily or cut, and dirt and oil tend to obscure finger images. That is why some analysts believe that VPR, or vein-pattern recognition, is a much better technology. By some estimates, more than 92% of Japan’s banks use vein pattern recognition - we will tell you why in the April issue Credit Union tech-talk - subscribe now.

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New research from TowerGroup finds that core banking technology vendors have a big role to play in helping mid-tier and small institutions take advantage of this emerging channel that will soon be a cost of doing business. In light of the surging interest in mobile banking services, TowerGroup believes that credit unions should move ahead with the deployment of mobile banking solutions with confidence that their core banking vendors will provide the key to start the engine of mobile banking. Their research concludes that in 2008, mobile banking will finally emerge as a basic, necessary service for financial institutions and therefore a “must have” in the solutions arsenals of core banking vendors. 

A new Harris Interactive study finds that “mobile phone users are increasingly comfortable making banking and purchase transactions while on-the-go – a virtual taboo until now.” The survey finds 16 percent of mobile phone subscribers already use mobile banking services, with 60 percent of these people using the services at least once a week. Many others presently not banking and buying on-the-go expressed interest in mobile banking, with 35 percent open to checking bank account balances and transferring funds via their mobile devices. A third of those surveyed (33 percent) also said they would like to receive text message alerts from their financial institutions. The survey also found that the biggest barrier affecting consumer acceptance of mobile banking and commerce is security concerns over personal data. 

According to phone manufacturer Ericsson, Wi-Fi hotspots will become as irrelevant as telephone booths as mobile broadband takes off. The replacement of Wi-Fi usage by mobile broadband assumes widespread mobile broadband adoption, widespread use of picocells and femtocells to increase indoor coverage, reasonable pricing plans, roaming agreements and other service delivery conditions that make the service truly convenient and predictable.

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AV-Test.org, an independent antivirus testing organization, has released new test results on the latest versions of 30 antivirus products. In January and February alone, AV-Test.org discovered 1.1 million samples of unique malware spreading around the Net. The organization found nearly 5.5 million total during all of last year, up from 972,000 in 2006. As for the report cards, Sophos scored well (all As and Bs) in the AV-Test.org tests, as did Symantec’s Norton Antivirus (five As, two Bs, and a C in response time to new malware, with a 4- to 6-hour window). McAfee got all As and Bs, except for two Cs - in performance, and in response time to new malware (4-6 hours). 

Code Green Networks, a provider of data loss prevention (DLP) solutions for protecting member data and safeguarding intellectual property, announced the release of Version 5.0 of its DLP system. CGN says that the new release enhances the capabilities of their CI-1500 and CI-750 Content Inspection appliances with new features for ease of use, expanded techniques for detecting content, and an additional option for fully integrated email encryption using the Cisco Registered Envelope Service.

Structuring is a favorite method used by money launderers to attempt to avoid detection. According to security firm Fortent, common signs of structuring include:

1. Movement of cash in multiple transactions under $10,000.

2. Attempts to take the sender’s name off wire transfers.

3. Large cash deposits made to ATMs.

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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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Why should your credit union cater to the Millennial Generation? Perhaps because a study conducted earlier this year by the Center for Media Research found that there are more people under 35 than there are people over 54 making a six digit income. Across 87 major markets represented in the survey, there are 23.2 million adults living in households with an annual income of more than $100,000. Of those, the survey found, 6.2 million, or 26%, are under 35, and of those, 36% are under 25. Finally, it is predicted that the collective income of GenY will surpass the BabyBoomers by more than $500 billion within 10 years.  

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Software vendor Talisma claims that financial institutions that put searchable knowledge bases on their website that provide Web surfers with immediate answers to queries can lower phone call volume 15% in the first year after installation. They are also big fans of chat, stating that agents can handle on average between 1.4 and 2.4 chats simultaneously, with 1.6 a breakeven point. Finally, the firm points out that there is also the hidden cost of not offering chat to a market segment now accustomed to using chat as a way to access customer service.

MediaNet Group Technologies has been contracted by Southern California-based Arrowhead Credit Union to create an online mall and affinity program where members can shop to spend their rewards. MediaNet's BSP Rewards platform brands and customizes proprietary loyalty programs for credit unions for rewards earned on debit cards, and offers merchandise and services through more than 700 merchants and 8,500 restaurants.

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Vertical Systems just launched the Vertical SBX IP 320. The converged VoIP telephony system is designed for single- and multi-location small businesses. Developed in partnership with LG-Nortel, the SBX IP 320 includes VoIP with support for both digital and IP phones, SIP trunking, integrated voicemail/auto attendant, VoIP, CTI, conferencing, Wi-Fi phones for mobile users, and an IP Soft phone. Each system can support 32 users per site and the systems can be networked together at up to 72 sites. 

Microsoft and Nortel announced the availability of three new joint unified communications solutions as part of their ongoing Innovative Communications Alliance (ICA) partnership. The joint products include: 

1) Nortel Converged Office, which integrates Nortel’s Communication Server (CS) 1000 IP-PBX or CS 2100 IP-PBX with Microsoft Office Communications Server 2007; 

2) UC Integrated Branch, which is designed to extend unified communications to branch office and remote sites, combining Office Communications Server 2007 mediation server capabilities into the Nortel Secure Router 4134, while integrating WAN routing, Ethernet switching, security and VoIP into a single platform; 

3) Nortel Multimedia Conferencing 5.0 for Office Communications Server 2007, a reservationless audio conferencing solution designed to enhance Office Communications Server 2007 conferencing with dial in audio bridge capabilities, enabling external non Communications Server 2007 users to dial into a conference. 

Few things are more frustrating for employees than unreliable phone calls. That is always a potential problem when a credit union implements a VoIP phone system. In the April edition of Credit Union tech-talk, we will tell you about a flexible, scalable, inexpensive VoIP monitoring system that should help your credit union avoid these problems - subscribe today.

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In theory, interactive voice response (IVR) systems are very compelling - being able to offer 24-hour service without human intervention. Yet many consumers have little use for IVR systems, and a large number of IVR applications fail to work well. We will outline the major reasons why IVR systems fail in the April issue of Credit Union tech-talk - subscribe now.

Pacific Service Credit Union announced it has achieved and sustained under 4-minute decisions on consumer loan applications taken by a loan specialist over the phone. The credit union’s superior performance is accompanied by a service guarantee of $100. Once a loan specialist has acquired the information needed during the phone call, if the loan decision takes longer than 4 minutes, the member will receive a $100 deposit in their savings account with the credit union.

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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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