Credit Union tech-talk News

November 12 - November 16, 2007

• 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 and MShift Announce Partnership 
* COCC Focuses on Green Initiatives 
* LogRhythm and NetApp Form Collaboration
* American Technology Endorses L9’s CUsite
* Six CUs Select Member Access Pacific’s Prepaid Card Program

Open Solutions, a leading provider of integrated enabling technologies for credit unions across the United States, Canada and international markets, has entered into a partnership agreement with MShift, a leading provider of customizable wireless solutions. Through this partnership with MShift, Open Solutions extends to its clients the convenience of anywhere, anytime mobile banking services.

COCC, a leading provider of next generation technology services for credit unions, announced that its initiatives to reduce energy and paper consumption have resulted in lower costs and two innovation awards from the Connecticut Quality Improvement Award Partnership. Over the past several years, COCC has reduced its environmental impact in several key areas: the energy required to operate the company’s computer equipment and to physically transport paper checks, and the paper used for banking reports, statements and forms. 

LogRhythm, a leading provider of enterprise-class log and event management solutions, and Network Appliance, a top provider of storage and data management solutions, announced a collaborative effort to help credit unions more easily address log and event management for compliance, security, and IT availability. The firms say that compliance-driven organizations like credit unions with long-term retention requirements will particularly benefit from the bundled solution. 

American Technology Services announced a partnership to market and sell L9's CMS product (CUsite) for credit unions. The formalized partnership will allow American Technology Services to deliver the best-of-breed CMS web site solution for credit unions. L9, a CUSO based in Vermont, was formed through a partnership between Level 9 and the New England FCU. 

Member Access Pacific announced the addition of six new Pacific Northwest credit unions onto its Prepaid Card platform. VISA branded, globally accepted and reloadable, MAP Prepaid solutions address the growing demand by consumers for economical Prepaid cards. 

Hardware News

Intel has introduced the Intel Entry Storage System SS4200x, its new channel-distributed storage product built for small-to-midsize businesses. The Intel storage device is offered in two distinct flavors: the SS4200-EHW model, which is a hardware-only version, and the SS4200-E model, which features software integration. Starting out with a four-disk-drive configuration, the SS4200-EHW system features an external Serial Advanced Technology Attachment port for future storage expansion. The S4200-E storage box was developed in close partnership with EMC Corp and includes integration with EMC's Lifeline software. Pricing begins around $500.

Lenovo Group, the world's third-biggest personal computer maker, just unveiled its first new Think-branded products since buying the PC unit of IBM in 2005. China's top computer maker announced two products: the ThinkStation S10 and the ThinkStation D10. The new computers run on chips from Intel, with the S10 starting at about $1,199 and the D10 at about $1,739. 

MagTek®’s ExpressCard 1000 is the industry’s first “ALL-IN-ONE” instant issuance and complete card personalization platform forCredit, Debit, ATM, and Financial Gift Cards designed to fit securely and comfortably within a branch location.

For the first time, card personalization features such as color card-printing, magstripe encoding, smartcard encoding, card embossing, indent printing, and foil tipping have been combined into a single device which provides both the physical and logical security features required to meet the demands of a branch or retailer’s card issuing environment.

Equipped with MagnePrint® card authentication technology (www.magneprint.com), the ExpressCard 1000 offers the capability to capture the card's reference MagnePrint at the time of card issuance so that reference value may be used in conjunction with complementary risk management analytics with card present transactions. The ExpressCard 1000 can be connected as a peripheral to MagTek’s IntelliCAT and MCAPS 3000 PIN selection and instant issuance software suites creating a complete and secure card issuing platform.

For more information on ExpressCard 1000, go to www.magtek.com or call your MagTek sales representative at 800-788-6835.

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ATMs/Kiosks

In partnership with Triton and running on Triton RL5000xp ATMs with Prism software,
Select-A-Branch is a surcharge-free ATM Network that features customized, branded screen content for network-member financial institutions. Each transaction has the same look and feel, the same marketing messages and the same offers presented at their own financial institution so credit unions can send their members to these locations without fear of losing them to rivals. Select-A-Branch member financial institutions benefit from an expanded reach in the community and access to convenient offsite locations. Plus the Select-A-Branch Network does not charge any upfront membership fees, so Triton says that network participation is affordable for credit unions of all sizes.

As an outgrowth of its Global Security Task Force research and development program, Diebold has released its new Advanced Skimming Detection technology for ATMs. An element of Diebold's S.A.F.E. (Secure Anti-Fraud Enhanced) ATM, the fraud-deterrence technology is engineered into Diebold's Opteva ATMs. When a skimmer is attached to an ATM, the new detector sends out an alert, which credit unions can direct to either the branch alarm system or to the ATM network monitoring system.

A recent survey carried out by the morefocus group found that although consumers continue to complain about the level of fees, it is clear from their research that even at $3.00, transaction costs are still below the pain threshold. Even though 72 percent of those surveyed felt that fees were unnecessary or inflated, a staggering 92 percent used ATMs on a regular basis, with 55 percent using machines outside of their institution's network more than once per month. The report noted that "what we aimed to understand was why those people who reported that they saw poor value in ATM services continued to use them. Quite simply, it is a function of necessity and convenience." 

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US Biometrics Corporation, a provider of digital identity applications, and VALID Systems, a check cashing and verification solutions provider, have joined forces to offer the banking sector solutions for using biometrics to help secure check cashing. The system is specifically targeted at the 80 million underbanked consumers.

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Extending disaster recovery capabilities via satellite is gathering steam, as access modems grow smaller and services become more readily available. Because satellite coverage nearly blankets the entire earth, such services keep users connected in places with sparse cellular coverage, in addition to its inherent disaster recovery value. We will cover some of the latest trends in satellite access in the December issue of Credit Union tech-talk - subscribe now.

According to a new Celent report, “Corporate Mobile Banking: The Times They Are a-Changing,” larger businesses are poised to embrace mobile banking solutions. As for consumer mobile banking, Celent is convinced that 30% of all retail online banking households will engage in mobile banking by the end of 2010. They say that the only way to spur adoption will be to treat the mobile channel as the online channel. The channel is simply an entry point — and charging for that entry could be a significant deterrent. The ultimate goal is to market the concept of anywhere anytime access. 

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There is an ongoing debate among security professionals about the pros and cons of appliance based deployments of security solutions. One company by the name of Protegrity has solved this problem for their customers. Their Defiance Threat Management System is available as either an appliance, software or a combined installation. They believe that these flexible deployment options will cover any organization's desires and preferences.

Affinion Group has partnered with Debix to roll out an identity theft fighting system called Debix Instant Authorization. The Debix platform enables credit unions to initiate Instant Authorization requests via a telephone, web browser or application programming interface. Before any new credit accounts can be opened, a credit union can send the member a secure automated phone call (by trying up to three numbers: mobile, home or office) prompting them to authorize (via PIN) or reject the transaction. 

An important step in the process of securing your Windows desktops and servers is to shut down unnecessary services. As long as Microsoft Windows has been a network capable operating system, it has come with quite a few services turned on by default, and it is always a good idea to shutdown unnecessary services. In the December issue of Credit Union tech-talk, we will cover some services that should not be running - subscribe today.

MAGENSA™ is a trusted verification authority (TVA) that provides real-time remote-hosted credential authentication services. These services enable credit unions, financial institutions, businesses, and government agencies to integrate PCI DSS and FFIEC multi-factor authentication and end-to-end data encryption capabilities into their existing processing environments without the need for substantial financial investments or massive changes to the existing infrastructure.

Specifically tailored to enhance the security of internet banking and ATM applications, MAGENSA delivers unprecedented security and authentication using the familiar magstripe card credentials (secure tokens) that a credit union has already issued to its members. MAGENSA is powered by the trusted and proven card authentication technology known as MagnePrint® (www.magneprint.com). MagnePrint differentiates a members’ authentic magstripe card from an altered or counterfeit version, transforming the traditional magstripe card into a powerful security token.

MAGENSA’s Secure Data Center (SDC), a reliable 24x7 operations center that is maintained 365 days a year, simplifies the integration of data decryption and MagnePrint scoring into existing websites, and allows for data federation across institutional domains.

For more information on MAGENSA, please visit www.magensa.net or call 877.MAGENSA.

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Core Systems: 

Using Core Systems to Increase Loans and Deposits

AFTECH - http://www.aftech.com   Read Joseph Antellocy's comments: http://www.cunews.com/roundtable/AFTECH.pdf

COCC - http://www.cocc.com   Read Mark Shaw'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

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

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

IntegraSys - http://www.integrasys.fiserv.com Read Anne Stauch's comments: http://www.cunews.com/roundtable/IntegraSys.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

Summit Information Systems - http://www.summitsite.com   Read Kevin Sparks' comments:   http://www.cunews.com/roundtable/Summit.pdf

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

USERS - http://www.users.com   Read Eric Panepinto's comments:   http://www.cunews.com/roundtable/USERS.pdf

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AMR Research has released results of a new study describing Customer Relationship Management (CRM) implementations. Their research suggests that CRM initiatives often fail due to insufficient end-user involvement and buy-in. They note that in applications such as financial management applications, the users have much less flexibility or choice in whether or not to adopt an enterprise application standard. Their advice: engage end-users from the very beginning for a more successful implementation, and ignore end-users at your peril.

Pittsfield, MA-based Greylock Federal Credit Union has developed a "New Road" subprime auto loan. The rate on the loans generally will be set at half the rate of other subprime lenders, and will be reduced after each six-month period the member makes regular payments. After three years of reestablishing good credit, the rate will be equal to the credit union’s prime auto loan rate. 

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The Federal Reserve Board announced that it is cutting its fees for handling Check 21 items delivered to paying institutions electronically but raising tariffs for processing paper checks and the substitute checks authorized under Check 21. Effective Jan. 2, the Fed’s new rates for 2008 will include a 3.2% drop in fees payable by collecting institutions for checks cleared as images. But, in a move that will likely lead to even more electronic check clearing, fees for images cleared as substitute checks at paying institutions will rise 10.3%. Additionally, fees for origination and receipt of ACH transactions will remain at 2007 levels, while a $2.50 fee for input file processing is being eliminated. 

According to a recent Javelin study of 2,000 consumers, the most valued financial alerts are those that send notification of unusual transactions on an account. In the report entitled "Interactive Financial Messaging," 45% of consumers noted that they preferred to receive financial alerts about 'Unusual Transactions on their account' more than any other alert type. This was followed closely by 'Notification of when a bill is due or has been paid' at 35%.

Revolutionary Convergence of Security Technology for Secure Internet Banking!

MagneSafe^TM P55 is a portable card reader/authenticator with four key technologies for secure online banking: Cardholder Data Encryption, MagnePrint^® card authentication technology, Website Authentication and Track 1, 2 and 3 card reading capabilities. In conjunction with MagneSafe^TM, the MagneSafe P55 is designed to offer secure, multifactor authentication for Internet banking, empowering consumers with the freedom and confidence of knowing that their transactions are protected anytime, anywhere.

MAGENSA, a Trusted Verification Authority that provides real-time, remote-hosted credential authentication services, allows credit unions to integrate PCI DSS and FFIEC compliant multifactor authentication, data encryption, website authentication, and data federation capabilities without the need for substantial financial investments or massive changes to the existing infrastructure.

For more information about the MagneSafe P55 or MAGENSA, visit www.magensa.net, or call 877.MAGENSA.  

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In many respects, it is getting easier to connect to and manage remote branches and offices. Vendors such as Cisco, Juniper, Nortel, Packeteer, and others are combining multiple functions (switching/routing, security, voice, optimization) into a single device. The benefits are less time spent installing, managing, and updating point products. Additionally, vendors are making it easier to manage the remote office. Vendors such as Adder, Avocent, LANtronics, and Raritan provide out-of-band, KVM access to repair problems in a remote site even when the WAN link goes down. Uplogix offers an innovative product for managing branches - not only does it give out-of-band access to equipment at remote locations when the WAN link goes down, it lets IT staffs decide what repairs they can automate. The product runs through diagnostics in minutes to deliver the probable cause of the problem. This helps eliminate the need for human intervention, and makes it easier for a central staff to manage the remote sites. 

VoIP phone system maker Allworx and VoIP (voice over Internet protocol) service provider Voxitas (formerly NetLogic) have combined their solutions. As a result, organizations now have access to Allworx’ affordable yet full featured VoIP phone systems preconfigured to work with Voxitas’ dedicated, SIP-based business VoIP service. The Allworx 6x, 10x, and 24x phone systems are designed for organizations ranging from 2 to 100 employees per site. Voxitas claims it offers superior quality of service over its dedicated network, and has eliminated the jitter and garble commonly associated with VoIP services that traverse the public Internet. In addition to IP trunking, Voxitas’ services include long distance, Internet, toll-free and emergency 911 services to single and multi-site IPBX systems. 

T1s, VoIP, DSL, VPNs… We Have You Covered!

The credit union world changes fast and technology must keep up. Ewart Technologies has solutions that can help your credit union stay on top. Covad’s voice and data services, along with our robust VPN solutions, integrate seamlessly to provide your organization with flexible, affordable communications.

Since 1997, Ewart Technologies, Inc. has been a trusted solutions provider for credit unions, offering a full range of technology services designed to maximize the value of IT investments.

Whether your organization simply needs a T1, DSL, Hosted VoIP, or PRI replacement, or you don’t have a clue what any of that means and need help wading through the techno-jargon to find a solution that makes sense, Ewart Technologies can help.

Call us today, toll-free at 877.241.1490, or visit us at: www.EwartTechnologies.com

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Today, hosted IVR (interactive voice response) systems are available to small credit unions that provide the same features and functionality as those that larger organizations use - but without the high cost traditionally associated with high-end IVRs. Ifbyphone is a hosted voice application and platform company that takes a simplified approach to the deployment of stand-alone and web-integrated voice services for small organizations. Beyond the member service functionality for basic inbound calls, hosted IVR solutions from Ifbyphone can also be used to design voice surveys and launch in-house marketing campaigns. 

Washington-based BECU (Boeing Employees Credit Union) has partnered with TuVox, a Silicon Valley provider of on-demand speech applications to roll out a new self-service phone system. For example, the loan choice speech solution is being re-implemented as a TuVox-powered Natural Language Speech application. There will also be new branch and ATM locator services, and the TuVox Perfect Router call routing application will utilize natural language capabilities to route callers to their desired destination.

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Catch Tom and Bill Rogers, Associate Editor of Credit Union tech-talk at the following conferences in 2007:

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

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