Credit Union tech-talk News

February 4 - February 8, 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

* City of Boston CU Selects COCC 
* Credit Union 24 Sets Annual Transaction Record
* uMonitor Selects William Mills Agency
* VyStar Chooses Millennial Vision

COCC, a leading provider of next generation technology services for credit unions, announced that the City of Boston Credit Union has selected the company for a long term technology partnership. Established in 1915, City of Boston Credit Union is one of the oldest credit unions in the United States. COCC also announced that 12 financial institutions selected the company for technology partnerships in 2007, and that the company is on track for its third consecutive year of double digit revenue growth. 

Credit Union 24, the only national credit union-owned point of sale (POS) network in the U.S., broke several growth and performance benchmarks in 2007, including topping 200 million transactions, as well as creating the nation’s largest surcharge-free ATM network. Credit Union 24 saw 213.8 million transactions in 2007, setting a new annual record and breaking the 200 million transaction milestone for the first time in company history. 

William Mills Agency, the leading public relations agency serving the financial services industry, has been chosen by uMonitor, a financial solution services provider for member acquisition and retention, to lead public relations efforts and increase brand recognition in the financial industry. Founded in 1993, uMonitor works with its clients to create solutions supporting all of a credit union’s efforts to attract and retain members. uMonitor also announced that it has entered into a sales referral agreement with NCR. Under the agreement, NCR will offer two of uMonitor’s online applications as part of NCR’s Internet banking solution. 

VyStar, one of the top twenty credit unions in the U.S., has selected Millennial Vision (MVi) to integrate credit union core data processing systems with Laserfiche electronic document management systems. VyStar has 25 offices, all within a one hour drive of its headquarters in Jacksonville, Florida. VyStar’s assets exceed $3.3 billion, and it serves 350,000 members.

Hardware News

Lenovo announced its intent to jump into the server business by licensing x86 server technology from IBM, helping extend its product offerings to small and midsize businesses. Lenovo will manufacture one- and two-way x86 servers based on IBM's System x technology, which Lenovo will distribute under its own brand name. Meanwhile, IBM will continue to distribute System x servers under its own brand name. The servers will add to Lenovo's corporate product lineup, which includes ThinkPad laptops and Think workstations. 

New switches are hitting the market from 3Com and Juniper. 3Com positions its Baseline Switch 2900 Plus Family as "smart" switches for small and midsize organizations. By delivering Gigabit Ethernet switching and special voice traffic controls, 3Com aims to simplify VoIP deployments. As for Juniper, they are targeting larger organizations with their EX series which offers the services and features IT has come to expect from a switch - 10/100/Gb Ethernet, fiber, and PoE. The switches will run JunOS, Juniper’s routing and now switching software, which provides a common command set to both of its switch and router lines. 

Check scanners must read and scan thousands upon thousands of paper checks in rapid succession, quickly and accurately. That is why preventative maintenance is so important for these high speed machines. We will cover a new method of cleaning check scanners without dismantling the equipment in the March issue of Credit Union tech-talk - subscribe now.

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ATMs/Kiosks

TMD Security announced that the next generation of its CPK+ anti-skimming software, the 6000 series, is available. According to the company, the CPK+ 6000 series can be integrated into any ATM or self-service terminal. New features of the CPK+ 6000 series include: direct communication with the host, remote management of the software's performance, centralized firmware uploading and the ability to connect with CCTV systems.

A company with the unusual name of BlingNation unveiled the "Blinger personal ATM" device at the recent Consumer Electronics Show. The firm claims that you can do everything that you can at a normal ATM but on the go (except withdraw cash). The Blinger is about the size of a PDA and works by inserting a magnetic BlingNation card into the back of the device, and then you enter your 4-digit personal code to log-in. The magnetic card can be a credit card/ATM card, but it has to be activated for the Blinger service. The firms touts that you can pay your bills, transfer money between accounts, or request money from other people with their device. 

CO-OP Financial Services is now offering a full suite of digital tools to capture, proof and clear checks. The products include CO-OP ATM Check Imaging, CO-OP Fast Branch (kiosks) and CO-OP My Deposit (home), with CO-OP Branch Deposit and CO-OP Retail Deposit set to debut later this year.

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According to a recent consumer survey, a large majority of U.S. consumers trust in the convenience and security benefits of fingerprint authentication, especially as it relates to online banking, PC security and e-commerce applications. The survey indicates that a clear majority (77%) is ready to begin using fingerprint sensors as part of their day-to-day activities. The independent survey of U.S. consumers, sponsored by fingerprint sensor provider AuthenTec, shows two-thirds (66%) of consumers trust fingerprint biometrics as a means of authentication more than traditional PINs or passwords while 68% perceive the use of a fingerprint sensor to be more convenient.

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Javelin Research forecasts that 186 million US adults (approximately 97% of US adults with mobile phones) will have access to mobile banking through their financial institution by 2012. Based on a total population of 157 million US adults with mobile phones, Javelin says that there were approximately ten million US adults (6%) with cell phones conducting mobile banking transactions as of the end of 2007.

Consumers across the United States are ready to adopt a broad set of mobile commerce applications, according to new research from Dove Consulting. The research, sponsored by PSCU Financial Services, revealed that participants indicated they are ready to start using mobile banking and mobile payment at the point-of-sale now. When asked which of these mobile applications they were most excited about using, nearly two-thirds of study participants chose mobile banking and 30 percent chose mobile payment at the point-of-sale. Only a handful indicated they were excited about mobile person-to-person payments.

According to one analyst, “mobile banking in North America is gaining traction, but it’s still far from becoming a reality.” This research firm has some interesting conclusions on what it is going to take for credit unions to be successful with M-banking. We will highlight them in the March issue of Credit Union tech-talk - subscribe today. 

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Security researchers and vendors are noting that phishers are developing highly sophisticated methods of targeting high-level executives and wealthy end-users, creating bogus messages that are more convincing than ever before. It appears that phishers are getting better at researching their targets to find the wealthiest and most influential people online - a practice sometimes called "whaling." Some people fear that whaling might allow a criminal to leverage an attack on a single individual - a senior executive - to execute exploits that extend across an entire organization. 

Security industry analysts and other market watchers are still working to understand the long-term viability of NAC (network access control) as a standalone technology, but some organizations are already touting the security advantages of using NAC. We will provide some examples of successful NAC installations in the March issue of Credit Union tech-talk - subscribe now.

- Detect and prevent internal and external attacks on your network
- Meet compliance standards and guidelines such as FFIEC

Credit Unions are mandated to implement controls for ensuring the integrity of member data and information systems. Log Management solutions that consistently monitor, store and analyze log data are essential components of a defense in depth program for protecting these critical assets.

EventTracker from Prism Microsystems secures IT networks from cyber attacks and insider-threats by automating the real time collection, analysis and storage of event logs from all sources. EventTracker provides a unique capability that integrates real-time log correlation and in-depth analysis capabilities with change management. This comprehensive security management approach allows you to quickly detect vulnerabilities and remediate them before costly data breaches occur. EventTracker comes integrated with over 1000 targeted reports to prove to auditors that internal processes are in tune with policies and appropriate safeguards are in place.

Deployed at dozens of credit unions and over 600 companies worldwide, EventTracker is a powerful, cost-effective solution that is highly scalable yet easy to implement and maintain.

Download a free trial and get further information at www.eventlogmanager.com

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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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According to payments industry veteran Paul Tomasofsky, “financial institutions that have ignored their debit products in the past will be forced to educate, market and innovate or they will lose significant transaction revenue.” This is particularly true now that so called decoupled debit cards are hitting the market from Capital One. Some analysts suggest that decoupled debit card programs are out of reach for smaller financial institutions and that they should focus instead on enhancing the appeal of their existing debit card programs. Tomasofsky, president of Two Sparrows Consulting, said that “if a bank offers relationship rewards and emphasizes the relationship, it will be harder for a decoupled offer to attract that bank’s customers.”

The Nationwide Building Society, a large British credit union, has implemented technology from Real Time Content to run customized marketing advertisements on its website in a bid to increase the number of click-through rates for product ads. RTC's "adaptive media" platform customizes video and audio, matching the preferences of individual viewers in real-time to deliver personalized advertising. The vendor says its adaptive online video and audio adverts were customized from more than 16,000 different versions in real-time in order to appeal to the specific viewer. 

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MasterCard, who just reported strong fourth-quarter financials and transaction growth, is seeing a shift away from discretionary spending and toward so-called “everyday” purchases such as groceries and gasoline. In the U.S., debit cards, which again led MasterCard’s growth, now account for more transactions than credit cards for the No. 2 payment card network. U.S. credit card growth lagged far behind debit, as has been the trend in recent years. 

Mercator Advisory Group announced the release of its latest report, "Remote Deposit Capture for the Consumer". It finds that consumers are responding favorably to RDC at ATMs, and that the at-home solution seems to be the natural path of evolution for consumer RDC, but financial institution apprehension over check fraud at the consumer RDC level is high. "Remote Deposit Capture for the consumer, while slow to be deployed, is beginning to emerge at the ATM and now a few institutions have even implemented at-home solutions," comments Patty Hayward, Senior Analyst of Mercator's Debit Advisory Service.

Can extra security measures actually reduce trust in online banking? According to one study, users can lose faith in the security of online banking systems as the number of authentication checks they have to go through increases. We will cover this topic in the March issue of Credit Union tech-talk - subscribe now. 

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A report has just been issued on the results of the largest pandemic planning test done in the U.S. The report, prepared by the U.S. Department of the Treasury and two financial services panels, cautions that even well prepared telecommuting plans could face problems in the event of a pandemic. For instance, many small and midsize organizations said in the questionnaires that telecommuting isn't feasible for employees because their jobs can't be done remotely. Some also said that they don't have the necessary IT equipment to support telecommuting or that they are concerned about security issues. One of the things that could help credit unions deal with a pandemic is cross-training of employees, which the report noted is a "long-standing" practice in the financial services industry.

8x8 announced that Internet Telephony Magazine has officially named its Packet8 Tango as 2007 Product of the Year. Packet8 Tango is available for business users, and is compatible with the Packet8 Virtual Office hosted iPBX service. In addition to enterprise class PBX features, on-demand hosted call center capabilities and unlimited local/long distance calling, Virtual Office users can utilize videoconferencing. The Packet8 Tango Video Terminal Adapter is a broadband phone adapter that includes a built-in LCD screen which can transform an analog phone into a full motion videophone delivering advanced full-motion video at up to 30 frames per second.

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Before Cisco came out with the UC 500 Series, it was difficult for smaller organizations with up to 50 users to justify buying a POE (Power over Ethernet) Switch, Call Manager Express and Cisco Unity. But now it is easier to see the value of investing in Cisco's Unified Communications system because they have put many of the same features that enterprise companies have into a smaller box. If UC 500 customers invest in a wireless card, they will receive an automated attendant and can offer music on hold. The solution also features an easy to use configuration assistant which by some accounts allows users to set the box up themselves in around thirty minutes.

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

February 25-28, Miami - Biometric Summit

February 27-28, Houston - Software & Management Associates' SMArt Session 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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