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 Your source for the latest technology information of interest to credit unions across America.

Subscribe to our weekly e-mail newsletter and/or our monthly newsletter and stay on top of the latest technology trends in Hardware, Software, ATMs, Biometrics, Wireless, Online Banking, Marketing, Security, Internet Access and Call Centers.

June 8, 2015

~ This Week's News is Sponsored by Better Branches ~

 

General News  

* Patelco Selects Terafina
* Langley FCU Installs HappyOrNot Kiosks
* CU*Answers Announces Earnings Edge
* MARQUIS Adds 9 New CUs

Terafina announced that Patelco, one of the largest credit unions in the U.S. with more than $4 billion in assets and 280,000 members, has chosen the Terafina Omni Channel sales platform. The company says that their platform will help Patelco by connecting the member experience across multiple channels and creating standardized, scalable processes.

In order to gauge member service, Langley Federal Credit Union has installed the HappyOrNot customer satisfaction kiosks in each of their 18 branch locations. HappyOrNot kiosks record member satisfaction at the point of service by asking a single question to which members respond by pushing one of the smiley face buttons.

CU*Answers, a 100% credit union-owned CUSO, announced the creation of Earnings Edge, a division of CU*Answers Managed Services dedicated to helping credit unions grow, solve, and earn. The CUSO says that their Earnings Edge team was created to help credit unions harness the power of the CU*BASE core platform to increase earnings.

MARQUIS, a provider of data analytics/MCIF to CUs, announced that in the past three months they have signed nine new credit union clients. The newest MARQUIS credit union clients are: Alliance CU, San Jose, CA; Arrowhead Central CU, San Bernardino, CA; California CU, Glendale, CA; City & County CU, Minneapolis, MN; Credit Union of Texas, Dallas, TX; Harbor CU, Green Bay, WI; Security CU, Flint, MO; Washington State Employees CU, Olympia, WA; Whatcom Educational CU, and Bellingham, WA.

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Hardware News

RBR`s latest report, "Teller Automation and Branch Transformation 2015," shows how FIs view Teller Assist Units (TAUs) as a key enabler of branch transformation, allowing them to utilize new formats, increase efficiency and accuracy and redefine the role of the teller. FIs that were surveyed in the report cited increased accuracy and efficiency as the main drivers of TAU deployment, with terminals helping them to cut transaction times and streamline cash reconciliation processes. The number of dispensers shrank by 15% between 2012 and 2014, as many deployers replaced them with recyclers, while TAUs in the US grew by 4,500 terminals between 2012 and 2014.

Lenovo, which ranks as the world's largest PC maker, bought IBM's x86 server business last year and is aggressively targeting that market. The Chinese vendor is currently the world's fourth largest server vendor in this year's first quarter, with a 7.5% share, according to research firm IDC. The company plans to offer a wide range of traditional servers, but also sees a future in ARM servers, which can offer a power-efficient alternative to Intel-based x86 servers.

Storage vendor SanDisk has launched the 128GB SanDisk Ultra Fit USB 3.0 flash drive which they claim is the world's smallest USB 3.0 flash drive. Without its cap, the drive measures three-quarters of an inch in length, 0.63 inch in width and 0.35 inch in height, which Sandisk says makes it smaller than a dime. It is compact enough that you can keep it plugged in permanently and is priced at $120. 

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Hardware Section Sponsored by
Millennial Vision, Inc. (MVi)

 

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Software Updates

According to a new 27 page white paper from HP, "The hidden dangers of inadequate patching," 85% of all recent targeted cyber-attacks could have been prevented if the PCs involved had been up to date with current security patches. The report notes that customers do not trust vendors to patch their systems because:

- Patches can break things

- Patches can introduce security problems

- Patches don't work as promised

- Patches include undocumented or unwanted bonus "features"

IBM announced 20 new industry-specific solutions with pre-built predictive analytics capabilities that include pre-built analytic modeling patterns and interfaces for focused industry use cases, as well as data preparation capabilities to manage unique data and streamline collection and preparation of data for analytics. The software aims to combine member data, market data and product data with predictive analytics and intelligence. Credit unions could use member spending patterns to predict financial and life events and deliver more relevant offers.

 

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ATMs/Kiosks

Source Technologies announced the availability of its 8-Series Personal Teller Machine. With a side-by-side cash acceptor and cash dispenser built within the self-service kiosk, the new PTM has double the cash-handling capacity of its 6-Series while adding less than two inches to the depth of the unit. Credit union members also have the ability to choose denominations to withdraw exact cash. The company says that their Personal Teller Machine automates nearly all transactions historically handled by tellers, including official check issuance, and does so within just over one square foot.

A Chinese technology firm in conjunction with a Chinese university have developed the world's first market-ready ATM to employ facial ID. Built by Tsinghua University and Tzekwan Technology, the biometric ATM uses a camera to scan the faces of ATM users and then compares them to images on file to identify them. Through the use of sophisticated data markers, the developers claim that the ATM can recognize a legitimate user even if that person's appearance has changed. Other security features of the machine include the ability to record the serial numbers of every banknote deposited, as well as identify and verify multiple currencies.

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ATMs/Kiosks Sponsored by
Heritage Industries


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CU Success Stories  

 

Here is a chance to learn about real life credit union success stories from various technology vendors through the words of their clients. This week's vendor is:  

Vysym

Vysym

 

and their client is:

NorthEast Alliance Federal Credit Union

Credit Unions - if you have a vendor that you are happy with then please This email address is being protected from spambots. You need JavaScript enabled to view it.!

Vendors - if you have a credit union that is happy with your solutions then please This email address is being protected from spambots. You need JavaScript enabled to view it. and we will give you a $100 discount on your Case Study!
 

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Wireless World Sponsored by
Member Access Pacific (MAP)

MAP

 

The MAP App™ is the first network-branded prepaid card exclusively serving credit unions to offer mobile banking -
contact us now to learn more about this market-leading innovation for credit unions:

(866) 598 - 0698

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Wireless World

Javelin Strategy and Research's new report, "The Rise of the Mobile First Consumer — and What that Means for Banking," shows that 23% of surveyed consumers describe themselves as "mobile first" consumers which means that they primarily use a mobile device for checking account access at their primary FI. By comparison, mobile users who named the ATM as their primary point of access represented 10% of all respondents in the study. Javelin also says that mobile first users, despite their love for mobile banking, demonstrate high rates of online, mobile, and ATM use, as well as average rates of branch use. Finally, they are more likely to be younger, female, and have children at home than online-first or branch-first consumers.

Simple, which was recently purchased by BBVA, allows mobile bankers to attach photos to their transactions to preserve memories of them. Meanwhile, some systems permit small business owners to attach photos of their receipts to their transactions. In an attempt to appeal to Instagram users, Namu Systems has developed an app that refreshes users' memories of purchases with images that illustrate what they spent their money on. The product consists of a platform (data server, experience engine and social cloud) and mobile applications which can run on premise or in the cloud. The firm, which has offices in the US and Poland, is looking to white label the solution with FIs who are looking to make the mobile banking experience more appealing.

Visa's payWave is a contactless payment technology that can take many form factors. Now First West Credit Union has rolled out a new wristband dubbed Dashband that enables mobile contactless Visa payments. The Langley, British Columbia, Canada-based credit union acknowledges that they may be ahead of the curve with their “first wearable device in North America using Visa payWave,” but seeks to position themselves as being ahead of the curve of consumer demand.

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Security Section

The security intelligence and analytics field is growing rapidly and one entrant is Niara with their platform that attempts to detect and correlate anomalous behaviors and then assign confidence scores that indicate whether they warrant investigation. One module, Niara Security Intelligence, gathers data from routers, logs, SIEMs, IDSes and other existing third party systems, while a different module dubbed the Niara Analyzer crunches the data and correlates events that could represent attacks, assigns severity scores, and issues alerts.

About 68 percent of cybersecurity professionals feel vulnerable to insider threats and less than half feel they have sufficient control over insider threats, according to a Vectra Networks survey of more than 500 cybersecurity professionals in the Information Security Community on LinkedIn. Here are some other findings from the report:

  • Less than 50 percent feel they have appropriate controls in place to prevent insider attacks.
  • 62 percent say that insider attacks are far more difficult to detect and prevent than external attacks.
  • Privileged users, such as managers with access to sensitive information, pose the biggest insider threat (59 percent). This is followed by contractors and consultants (48 percent) and regular employees (46 percent).

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Leaders Roundtable

Online and Mobile Banking:

Using Digital Technology to Create Value for Members


Cognizant - http://www.cognizant.com
Read Steven DeLaCastro's comments:
https://www.cunews.com/Cognizant.pdf

D+H - http://www.dh.com
Read Nigel O. Prince's comments:
https://www.cunews.com/D+H.pdf


 
IMM - http://www.immonline.com  
Read Nish Shah's comments:

Javelin Strategy & Research - http://www.javelinstrategy.com
Read Mary Monahan's comments:
https://www.cunews.com/Javelin.pdf

PSCU - http://www.pscu.com
Read Jeremiah Lotz's comments:
https://www.cunews.com/PSCU.pdf

 

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Technology and Marketing

Whodini incentivizes users to disclose personal information by using rewards. When Whodini app users stroll past Bluetooth low energy (BLE) beacons in a branch, branch personnel can instantly know who they are and their preferences via their Whodini app profiles. Branch staff will not only know their name, but see their picture, date of their last branch visit, frequency of branch visits and their accounts. When members add information like their interest level in loans and mortgages, or their saving plans for retirement, they receive a reward for each answer.

Verity Credit Union has undertaken a unique marketing campaign called "Truth and Community" to boost their brand awareness – they employed local bands and artists. The Seattle-based credit union connected with musicians and artists in neighborhoods around their branches to build community affinity. Bands were asked to write a short song that included the word verity, while artists needed to create a visual piece that included the V from the CU's logo, along with its blue and orange color palate. The groups then came together to perform their songs with the art in the background for short videos that were then posted on Verity's website and on YouTube. It is also running on social media, TV and radio ads.

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Online Banking/E-Commerce/Website Design

CardHub released its latest Credit Card Debt Study, which revealed that U.S. consumers are on pace to rack up another $55+ billion in 2015, despite paying off $34.7 billion in credit card debt during the first quarter of the year. The study revealed good news: credit card defaults also declined by more than $350 million in Q1 2015 compared to the first quarter of 2014, bringing the Q1 default rate to its lowest point since 1995.

LoanNow is looking for credit unions to partner with them on their loan platform that targets subprime applicants. They believe that the traditional FICO score is outdated and ineffectual for this group of borrowers so they use algorithms and a variety of technical tools to look at far more factors than FICO scores. They also closely monitor real-time performance while the borrower is in the loan. Plus they have come out with a Group Signing feature that allows borrowers to allow friends and family to pledge to help retire some fraction of their loan if they default - this helps them earn credits towards lowing their loan rate.

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Internet Access

Radware announced enhanced protection from threats posed by advanced bots through its Attack Mitigation System. This enhancement provides the ability to track end user devices without the need for IP address. Fingerprinting technology is used to precisely identify application users or website visitors who have a history of malicious behavior, and are often part of a botnet. Device fingerprinting can also improve identification of malicious users accessing the Internet through Network Address Translation (NAT) devices that result in many devices sharing the same IP address, and anonymous proxy services that make it difficult to block IPs without potentially blocking legitimate users/devices.

Varnish is open source Web acceleration software designed to speed the performance of the over 2 million websites that deploy it via the smart use of virtual memory. The enterprise edition of Varnish Plus now includes the ability to fully manage SSL/TLS (Secure Socket Layer/Transport Layer Security) encrypted sessions between server and client, securing through encryption the data exchange between users and the Web server software. This will also help with search engine optimization because Google gives preferential search ranking to sites with full encryption.

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Call Centers

As fraudsters increasingly hone their social engineering skills, they are becoming more adept at tricking call center agents. In an effort to combat this fraud, Authentify recently launched the AuthentifyxFA SecureCallCenter which is an application that pre-identifies and pre-authenticates mobile users wanting to speak to a call center representative using voice biometrics. The agent does not have to waste time validating the member's identity or asking challenge questions because the app has verified them before they connect to the contact center. The member logs into the credit union's mobile app, then taps a call center button, which launches AuthentifyxFA's biometric authentication sequence. If the user is authenticated, the SecureCallCenter app connects their call and passes the contact and account information to the agent's PC.

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