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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.

September 12, 2016

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

BB

 

General News

 

* MDT Converts High Peaks FCU
* Aite Group Recognizes Symitar
* First Lenders Data Partners with Dart Appraisal
* SPE FCU Converts to CU*Answers

High Peaks Federal Credit Union, based in Dillon, MT, has converted its core processing to Symitar Episys via a solution owned by Member Driven Technologies. MDT is a CUSO founded by a group of Michigan credit unions in early 2003 and currently serves clients in 28 states.

Symitar`s Episys received the Aite Group's Alliance and Most Open Architecture Award, in recognition of its openness to other third-party solutions. The research firm's report recognized Episys` ability to maximize customization, third-party connectivity, and interoperability standards through solutions such as the SymXchange interface and PowerOn tools.

First Lenders Data, an Austin-based provider of bundled settlement service solutions to the mortgage lending industry, announced a strategic alliance with Dart Appraisal, an independent provider of residential real estate valuation services, headquartered in Troy, MI. The strategic alliance provides home equity lenders an expanded number of appraisal vendor options when they order the FirstClose Report, an instantaneous data delivery solution that gives lending operations title search, flood certification, valuation and property information.

SPE Federal Credit Union in State College, PA recently converted to CU*BASE, the core data processing system of CU*Answers, a West Michigan-based CUSO. SPE FCU becomes the sixth and final credit union participant of CUSO rkGoBig to convert to the CU*BASE platform. rkGoBig is comprised of six credit unions in Pennsylvania, Maryland and Washington DC with a common goal of reducing expenses through synchronized operations while maintaining the unique identity of each CU.

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Hardware News

Research firm IDC is predicting that detachable tablets will revitalize the tablet market and outpace PCs and smaller slate tablets by 2020. They note that hybrid devices like the iPad Pro and Surface Pro 4 are heavily influencing the market, and pushing innovation from other hardware manufacturers as they try to keep pace. The market has already seen a robust growth in enterprise-ready hybrids, and IDC's research data suggests that the popularity of these devices will only grow with businesses of all sizes in the coming years.

IBM is releasing a new line of Linux-based servers that are designed to make data centers more efficient. The new servers are a part of IBM's LC line, and they include the S822LC for High Performance Computing, the S822LC for Big Data, and the S821LC. Big Blue claims that the "systems deliver an average of 80% more performance per dollar than latest x86-based servers." The servers were developed through a collaboration with the OpenPOWER Foundation. 

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

 

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Software Updates

There has been a nearly 250% increase in phishing sites and associated email traffic during first quarter of 2016, according to the APWG 2016 Phishing Trends Report. In response, Duo Security has released a tool that allows IT teams to run internal phishing simulations to identify potential security weaknesses. The complimentary tool, dubbed Duo Insight, offers organizations of all sizes an internal phishing drill system that allows them to simulate a phishing attack on their employees in just a few minutes.

VMware's NSX is a powerful software-defined networking (SDN) platform that some organizations are using to enhance their internal security. Traditionally, segmenting a data center was accomplished via the network using virtual local area networks (VLANs) and access control lists (ACLs), but NSX can be used as a segmentation tool to create discrete, private “zones.” Because VMware`s NSX solution operates at the hypervisor layer, it makes it easier to segment and move workloads in a virtualized environment.

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ATMs/Kiosks

CR2 announced the launch of its next generation ATM software packages, BankWorld ATM Client 5 and BankWorld Studio, that work on any ATM. The BankWorld ATM Client 5 supports video capabilities including live teller assistance, and allows ATM users to use simple touchscreen navigation through screen swiping, carousel screens and other user friendly actions and graphical elements. This latest iteration of BankWorld ATM Client 5 has also involved the redesign of BankWorld Studio, CR2`s tool which allows a credit union`s staff to design and deploy branding, campaigns and products to their self-service channels. The company says that this enables credit union marketing departments to design and publish new branding, products and services depending on each member`s unique profile or segment.

The US EMV liability shift will come to ATMs this fall: October 1 for MasterCard, with Visa to follow suit in 2017. However, MasterCard counts around 183 million US debit cards, compared to Visa`s approximate 484 million which means that it`s more likely that EMV-compliant debit users will have a Visa than a MasterCard, which leaves ATM operators responsible for fraud costs on a low number of cards through 2017. Some observers believe that this more limited exposure to counterfeit fraud liability leaves ATM operators with little incentive to upgrade, particularly when you consider that it costs anywhere from between $300 and $3,000 to upgrade an ATM to be EMV compliant.

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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:  

Ongoing Operations

OGO

and their client is:

Agriculture 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

Apple is extending the use of Siri for the forthcoming release of iOS10 to enable users to interact with their apps using voice commands. Developers will be able to use the SiriKit SDK to develop applications that will enable users to ask Siri to send a secure payment without ever opening an app. For example, UK bank Monzo is working on ways for mobile bankers to ask Siri to send payments to fellow Monzo users, authenticating them with the touch of a finger via Touch ID.

Backbase won a Best of Show award at the recent Finovate conference for their 60 Second Onboarding demo. The software utilizes simplified Know Your Customer (KYC) and sophisticated data-gathering technologies such as Optical Character Recognition (OCR) for scanning passports or credit cards, combined with facial recognition. The company says that traditional manual, and paper-based onboarding processes during a typical consumer onboarding process can cost up to 20 times more than computer-assisted, electronic document processing.

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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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Security Section

Celent just released a new report on authentication entitled “US Financial Institutions and Authentication: Digital Research Panel Series Part 5.” Selected findings of the report include:

- 56% of survey respondents view authentication and identity management as a strategic priority of vital importance to their future.

- Only 28% use biometrics today, but 60% are either actively planning or at least considering using it. 48% agreed that majority of their customers are comfortable with biometrics being used in the context of authentication.

- Over 80% believe that in less than five years user names and passwords will no longer be dominant forms of log-in.

In a related story, Javelin Strategy and Research released their "Future of Cardholder Verification Methods: Beyond Chip and Signature" report that concludes that remaining with PIN and signature for physical card transactions will simultaneously frustrate cardholders and satisfy fraudsters. They insist that the industry must embrace alternative approaches to cardholder verification methods, including biometrics. Their research shows that almost half of U.S. consumers believe that fingerprint biometrics is effective (49%) and 65% of consumers are willing to use the solution.

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Security Section Sponsored by
StrongAuth, Inc.

StrongAuth

 

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Leaders Roundtable

Online and Mobile Banking:

Digital Differentiation Strategies

 

Arizona Federal Credit Union - https://www.arizonafederal.org
Read Eric Givens' comments:
https://www.cunews.com/AFCU.pdf

 

 

 
IMM - http://www.immonline.com  
Read John A. Levy's comments:

 

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

 

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

 

RLR Management Consulting - https://rlrmgmt.com
Read Mitch Razook's comments:
https://www.cunews.com/RLR.pdf

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Technology and Marketing

Prama Insights includes anonymized information on virtually every credit active consumer in the U.S. The first two modules of Prama Insights are Vintage Analysis and Market Insights. The data set uses TransUnion's CreditVision platform and a seven year historical view of data to help lenders make better lending decisions. The Vintage Analysis module can help:

- Monitor underwriting policies

– Forecast losses

– Calculate loan profitability

– Define marketing strategies

Meanwhile the Marketing Insight module includes nine quarters of anonymized data and helps deliver a more granular understanding of delinquency rate changes by credit tier, geography, line of business and product.

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Online Banking/E-Commerce/Website Design

A recent survey of 1,000 consumers by Square shows that 75 percent of shoppers at its merchants now use chip cards, up from 40 percent a year ago. The bad news is that a large majority of them are not pleased with their EMV cards. Case in point: 91 percent of debit card users and 87 percent of credit card users expressed frustration with the new cards, with 37 percent complaining about slow checkout lines.

According to a new Forrester report, banking via bots is overhyped and not ready for prime time. The research firm recommends that credit unions hold off on launching member service or chat bots on messaging platforms for another two to three years. Forrester's research shows that while bots can be effective in some circumstances, today's bot technology often leads to uneven or bad experiences for digital bankers, either failing to complete the consumer`s request or providing a clunky, awkward experience.

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Internet Access

Silver Peak EdgeConnect provides an inclusive SD-WAN that connects users to applications via secure virtual overlays utilizing any combination of underlying transport. It delivers real-time traffic direction over any broadband or MPLS link and features 256 bit AES encryption. Path Conditioning is another key feature of Unity EdgeConnect and helps overcome the adverse effects of dropped and out-of-order packets that are common with broadband Internet and MPLS connections.

A port scan, or SYN scan, is a way of seeing if communication ports on a particular machine are open without establishing a full connection. The Spiceworks Port Scanner and Tester scans 20 common TCP ports, returning information about whether the port is open or closed (which includes timeouts and refusals). You can also do an ad-hoc scan for any port that doesn`t appear in the default list by entering the port number in the box at the top of the results page. The complimentary tool looks at external network ports running on the public internet, scanning only ports that aren`t behind user firewalls, and works on routers, switches, or servers.

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Call Centers

Chat support - other than bot-delivered chat - is defined by personalization. Yet canned responses are absolutely essential to running a chat program at a contact center. Without a doubt, building canned language for commonly repeated messages saves time and drives greater efficiency, while allowing agents to quickly select the most appropriate message. These are some good areas to apply canned responses:

- greetings

- standard troubleshooting questions

- typical FAQ responses

- step by step process steps

- closings

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