Credit Union tech-talk News

April 21 - April 25, 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

* Fiserv and U.S. Central Announce DP Contract with New CUSO
* Shell FCU Launches Mobile Banking with MShift
* 1st Advantage CU Selects UCN inContact
* Pacific Resource CU Chooses TMG for ATM & Debit Card Processing  

Fiserv, a leading provider of information technology services to the financial industry, and U.S. Central announced a new core processing agreement between Fiserv and Core Network Processing, LLC, a CUSO formed for the purpose of obtaining core processing for corporate credit unions. Under the agreement, Fiserv will provide core processing for the CUSO’s eight participating credit unions: Corporate America CU, FirstCorp CU, Kentucky Corporate FCU, Louisiana Corporate CU, Missouri Corporate CU, Tricorp FCU, U.S. Central FCU and West Virginia Corporate CU.

Shell Federal Credit Union launched Mobile Banking services, enabling all members with cell phones to bank wherever and whenever convenient. Shell FCU members may now check their balances, pay their bills, and transfer funds without having to be near a computer. The solution was deployed in collaboration with MShift.

UCN, a provider of all-in-one, off-premises contact center software, announced that 1st Advantage Credit Union has implemented inContact hosted ACD and IVR solutions and skills-based routing. InContact replaced an on-premises PBX system that was limited to static call distribution and did not provide call routing overflow. The $500 million credit union also uses the inbound and outbound call capabilities of inContact, recording and analyzing calls to improve agent effectiveness.

Pacific Resource Credit Union has signed a long-term contract and converted its ATM and debit card processing to TMG, making the Des Moines-based financial services organization Pacific Resource Credit Union's complete card services provider. 

Hardware News

Dell announced new designs for its Vostro laptops targeted at small businesses. The new models include the 13.3-inch Vostro 1310, which replaces the existing 14-inch model, and a refresh to the 15.4-inch Vostro 1500 series, the Vostro 1510. A new version of the 17-inch model, the 1710, will be released in mid-May. The key change is the switch to slot-loading optical drives, resulting in a thinner and lighter design than current Vostro notebooks. 

3K Computers has introduced the PowerSharp S100 Storage Server, which they say is a fast and easy way to add compact rack-mount file storage to small or remote office networks. The NAS operating system is pre-installed and internal storage is pre-configured. The server supports multiple file-sharing protocols, allowing users to consolidate and make single centralized platforms to manage and protect, or create scalable disk-based backups/replication targets. 

MagTek announced the availability of the Excella MDX, a compact check reader and dual-sided scanner that the firm says offers a cost effective alternative to implementing PC-based electronic check applications, including Check 21 and Remote Deposit Capture. The MDX also secures card based payment transactions by encrypting the encoded card holder data on debit, credit and gift cards through its integrated MagneSafe MSR. It can also be used with an ID card for 2 Factor Authentication during Web-based financial transactions. 

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ATMs/Kiosks

Postilion, a division of S1 Corp. that provides software solutions for self-service banking and payments, has launched enhancements to its ATM-driving solution. The software can now be deployed in an active/active environment, ensuring higher ATM network availability while maintaining financial transaction integrity. Postilion says that they can intelligently spread transaction loads across two systems based on operational requirements, which creates a high-availability EFT solution for a credit union's ATM network.

Infonox has released Kiosk*PASS software that they say can deliver a wide array of payment applications on an ATM. They claim that any compatible ATM can be upgraded via software to deliver additional services such as payroll check cashing, money transfer, money orders, and bill payment. 

Police in Florida say they have broken a statewide ATM theft ring that planted electronic devices inside ATMs to capture card info and PINs. Police say that when ATM users used one of the compromised ATMs, a device hooked up to a hard drive and installed inside the actual machine captured their card number, while a tiny camera installed inside the speaker recorded individual PINs. Authorities said that $2 million has been lost over the last year or so in the sophisticated scam.

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Jordan's Cairo Amman Bank is rolling out iris recognition technology across its network of ATMs and to teller and customer service desks in over 70 branches. The vendor - IrisGuard - says their iBank suite of biometric technology will be used to authenticate banking transactions for all customers. The product incorporates digital certificates and encryption identity security techniques such as digital certificates and encryption to ensure the integrity and privacy of biometric data transmitted across networks. 

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According to a global study by analyst house Juniper Research, the number of people accessing banking services via their mobile phones is set to soar to 816 million by 2011 - a ten fold increase on 2007. Juniper predicts the number of mobile banking transactions will also jump, from 2.7 billion in 2007 to 37 billion in 2011. The report found financial institutions are offering an increasing number of services via handsets, including financial information services, funds transfer, bill payment and presentation, account management and customer service. This growing range of options, combined with increased consumer confidence, due to enhanced security measures, is crucial to rapid uptake, says Juniper. 

Handset giant Nokia introduced the Nokia 6212 classic, a new 3G handset featuring integrated Near Field Communication (NFC) technologies enabling users to share content and access services as well as conduct payments and ticketing transactions. According to Nokia, users can securely store their credit card info on the 6212 classic and access accounts directly from the handset. A single tap on an NFC-enabled tag also enables users to receive new content like weblinks, audio files or contact data. 

Current Technology Corporation and MSGI Security Solutions announced that Texas-based
Celevoke has appointed 20th Century Fox Federal Credit Union a distribution channel partner for its proprietary Telematics solutions. The Telematic GPS system helps credit unions track assets, including vehicles they have financed. 20th Century Fox Federal Credit Union has successfully beta tested 130 units, and the next step is a national rollout to federal credit unions across the United States.

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Check Point Software is rolling out a set of security appliances for midsize businesses and branch offices. The company is introducing three new members of its UTM-1 line of multifunction security devices. The UTM-1 devices support firewall, IPSec VPN, intrusion prevention, network-layer SSL VPN, SmartCenter central management and its portal-based adjunct SmartPortal, and access to Lightweight Directory Access Protocol user stores. Users can opt to buy antivirus, URL filtering, e-mail filtering and SmartDefense advisory services to go along with their UTM-1 gear. The three new models are the UTM-1 270 (with a 400Mbps firewall), UTM-1 570 (with a 1.1Gbps firewall) and UTM-1 3070 (with a 4.5Gbps firewall). Prices start at $4,800, $8,500 and $24,000, respectively. 

Memory giant Kingston has announced the Data Traveler 'Blackbox', which features 256-bit AES hardware-based encryption compliant with the tough FIPS (Federal Information Processing Standard) 140-2 Level 2 standard. This USB memory stick features hardware-based encryption, which means that all data on the Blackbox is always encrypted. The conversion to and from plain text is done transparently once the user has logged into the device. Passwords are mandatory to use the drive, with complexity enforced to stop people from using simple passwords.

The huge RSA Conference recently concluded and there were quite a few announcements about new security vendors and products. We will bring you some highlights in the May issue of Credit Union tech-talk - subscribe today. 

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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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Green marketing campaigns are spurring some cardholders to take environmental or charitable action, according to results from SYNERGISTICS recent report, New Opportunities in Credit Card Marketing. Six in ten cardholders say they have received communications from one of their credit card providers encouraging them to do environmentally friendly things such as converting to paperless statements or making online payments. One-third of card users say they took action in response to a ‘Green’ promotion they received. Close to four in ten say it is a marketing tactic, but still a good thing. Slightly more than one-quarter feel that it is a good effort on the part of the organization to do something positive. Close to one-quarter believe that it is nothing more than a marketing gimmick.  

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NACHA began piloting their Electronic Billing Information Delivery Service (Ebids) back in 2003, but has just now gone live with its first transaction which was the presentment and payment of a Verizon bill. Ebids expands the capabilities of the ACH Network to include the distribution of consumer bills to financial institutions. This enables consumers to access e-bills via online banking accounts. NACHA says benefits of the service include increased revenue for credit unions, reduced costs and extended reach for businesses. 

The Center for Responsible Lending has published results from a survey titled 'Consumers Want Informed Choice on Overdraft Fees and Banking Options' conducted by Opinion Research Corporation that found “respondents overwhelmingly prefer that debit card purchases be declined at the checkout if these would otherwise result in an overdraft fee.” The survey also concluded that:

- More consumers are enrolled in the most expensive overdraft option, and low-to moderate-income consumers pay the bulk of the charges.

- Nearly nine of ten respondents want the option to choose whether their checking account will include a fee-based overdraft loan feature.

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LifeSize Communications, a provider or HD video conferencing solutions, announced a new HD video conferencing system that retails below $5000. The new offering, LifeSize Express with Focus, includes an integrated HD camera and microphone for $4999, to make possible an HD experience over any broadband network. The new LifeSize Focus offering brings together an HD video camera with full HD 1280x720 video at 30 frames per second for high quality in a wide range of light conditions, with an integrated two-microphone array that features patented beam-forming technology for enhanced sound quality. 

MPLS (multi protocol label switching) has become the de facto standard for converged Wide Area Networks. Large companies have adopted in greater percentages than small and midsize organizations, but now it is becoming affordable for even smaller credit unions. We will tell you how it works in the May issue of Credit Union tech-talk - subscribe now.

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Most contact center experts say that one of the most effective methods for identifying those individuals who can perform in the contact center is to adequately screen them ahead of time. Many say that screening should go beyond standard questions and background checks and include a 'real world' simulation that mimics the activities of a typical contact center agent. A company called FurstPerson offers their CC Audition system to organizations that would like to try the simulated approach. The CC Audition solution, which is hosted by FurstPerson in a Web services environment and does not require software to be installed on testing computers, involves candidates in a 35 minute simulation that includes an introduction, training session, three call scenarios and simulation exit.

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

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

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

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