Your source for the latest technology information of interest to credit unions across America.
Subscribe to 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.
This Week's News is Sponsored by Better Branches ~
Kasisto Launches KAI-GPT, a Banking Industry-Specific Large Language Model
Kasisto announced the launch of KAI-GPT which they claim is the world’s first banking-specific large language model (LLM). They say that their solution dubbed KAI Answers empowers CUs with the potential of generative AI to provide human-like, financially literate interactions at speed and scale.
AKUVO Inks Seven More CU Deals
Akuvo, a CUSO, announced seven new CU clients for its consulting and technology platform, which means that Akuvo's platform is now being used by over 60 CUs. Akuvo's services include data analytics, core banking, loan origination, and digital banking solutions.
ACI Worldwide to Offer CUs New Cross-Border, Real-Time Payment Services
ACI announced the addition of Swift Go to its cross-border payments offering. Swift Go is a new standard in low-value international payments, enabling members and SME members to send simple, fast and transparent cross-border payments straight from their account, combining the power of Swift gpi with domestic real-time payments infrastructure where possible.
~~~
Intel Launches Agilex FPGA for Smart Networking
Intel has launched a new FPGA (field-programmable gate array) for smart networking called Agilex. The Agilex FPGA is primarily used in smartNICs that offload the processing of network traffic from the CPU, thus freeing up CPU capacity for other tasks. Intel sees Agilex playing a role in data centers, telecomm, and financial services.
Axiado Introduces AI-Driven Security Processors
Axiado is coming out with two new hardware security modules (HSMs): 1) the AX3000 and 2) the AX2000-TCU. The AX3000 is geared towards larger enterprises, while the AX2000-TCU is designed for medium-sized organizations. Both HSMs use advanced encryption technology and offer secure key management, data authentication, and secure key backup and recovery services.
~~~
Banking on ChatGPT – Why Generative AI Will Be Good for Commercial Lending
This article posits that with the ability to understand natural language, generative AI chatbots can assist consumers in the lending process by answering their questions and providing guidance. Additionally, they can help FIs streamline their lending processes by automating tasks such as underwriting and document retrieval.
Top 5 AI Use Cases for Retail Banking
With the help of AI-based systems, FIs can analyze vast amounts of structured and unstructured data and interpret patterns. This article concludes that these are the 5 primary AI use cases for retail banking: 1) fraud detection and prevention: 2) chatbots and virtual assistants; 3) personalized recommendations and offers; 4) credit scoring; and 5) investment management.
~~~
Examining Cutting Edge ATM Software Attacks
The article discusses a recent ATM attack called "FixS" which involves exploiting a vulnerability in the ATM software to dispense cash without authorization. FIXS gets fraudulent access to the XFS (eXtended Financial Services) middleware, which controls the ATM hardware including the cash dispenser. The attack requires physical access to the ATM and the fraudster must install malware on the machine to carry out the attack. The FixS attack highlights the importance of continuously updating and securing ATM software to prevent these types of attacks.
The Efficiencies of ATM-as-a-Service
ATM-as-a-Service (AaaS) refers to the outsourcing of ATM deployment, management, maintenance, and user service to a third-party provider. Not only does the model free up front-line staff from managing ATM cash loads and daily maintenance, it also allows IT and technical staff to shift focus from maintaining the ATM infrastructure to digital banking or other value-add channels.
Avivatech Intros Cash Analytics Solution
Avivatech has launched a new platform designed to help FIs make predictions about cash operations. The new system, Cash Operations Analytics, integrates transaction data with forecasting algorithms to help FIs predict demand, streamline handling and improve security. The platform provides real-time data visualizations and a hosted dashboard to help make the process easier.
~~~
Building Loyalty via the Mobile Connection
Across all age groups, users’ comfort level with mobile banking has increased dramatically, with preferences shifting towards apps over desktop or in-person options. The author argues that there are three imperatives for smaller FIs to deliver a mobile banking solution: 1) Make it modern; 2) Make it seamless; and 3) Make it personal.
Personal Financial Management Becomes New Frontier for Apps
According to a series of recent studies of mobile banking and credit card mobile app and online users, released by J.D. Power, digital features focused on personal financial management have become the keys to standout engagement and user satisfaction. Their studies found that apps are producing significantly higher overall satisfaction scores for basic transactional tools, such as account transfer, bill pay, mobile check deposit and peer-to-peer (P2P) lending. However when it comes to more advanced personal financial management tools, such as spending analysis and budgeting tools, many providers struggle to connect with mobile bankers. When mobile bankers actively engage with three or more personal financial management tools, such as credit score monitoring, spending analysis and budgeting tools, overall satisfaction scores rise 127 points vs. when these tools are not offered.
~~~
6 Ways Generative AI Chatbots and LLMs Can Enhance Cybersecurity
Generative AI chatbots and large language models can be a double-edged swords from a risk perspective, but with proper use they can also improve cybersecurity in key ways. Here are six ways in which generative AI chatbots and LLMs can enhance cybersecurity: 1) detecting and preventing phishing attacks; 2) identifying and monitoring insider threats; 3) improving incident response times; 4) automating security operations; 5) providing personalized security training; and 6) enhancing vulnerability management.
Phishing Remained the Top Identity Abuser in 2022
The Identity Defined Security Alliance (IDSA) has released a report stating that phishing remains the leading form of identity abuse in 2022, with 64% of organizations reporting an increase in phishing attacks compared to the previous year. Notably, the report also highlights a rise in identity abuse through web-scraping, where malicious actors use bots to harvest personal information from websites, and decentralized identifiers (DIDs), which can be used to impersonate legitimate users.
~~~
Technology and Marketing
BECU Offers Digital Envelopes to Help Members Build Savings
BECU has launched a feature called "Digital Envelopes" to help members build their savings. The feature allows members to create virtual envelopes for specific savings goals, such as a vacation or a down payment on a house. Members can set up automatic transfers to these envelopes, and track their progress towards their savings goals within the CU's digital banking platform.
FIs Are Missing out on Personalization
The author contends that FIs are failing to make use of personalization to build closer accountholder relationships. For example, a study by PwC found that 48% of consumers would like their FI to provide personalized offers and communications, but only 30% believe their FI does so effectively. He recommends starting by testing with the data you have (interactions captured from the site or app can provide a treasure trove of valuable information from known and unknown users), learn from your results, and repeat, keeping data at the center of every decision.
~~~
Ripple Launches CBDC Platform for the Development of CBDCs
Ripple has launched a Central Bank Digital Currency (CBDC) Private Ledger platform for the development of CBDCs and stablecoins. The platform has been designed to enable central banks to leverage public blockchains and CBDCs to modernize and streamline global finance. They say that their CBDC Private Ledger is backed by a suite of robust APIs that provide central banks with a secure foundation as they experiment and mature their CBDCs on a path to production. The private ledger is confidential and managed by the central bank, allowing for control and flexibility in determining levels of access, transaction approval workflows, and conditional rules for transaction execution.
Faster Payments Are Top of Mind for Most Consumers and Businesses
A new survey has found that 80% of consumers and 75% of small- and mid-sized business owners believe it is important to have faster payment options. The survey, commissioned by the NACHA, also found that respondents expect immediate access to funds from person-to-person payments and bill payments, while payroll and merchant payments can wait up to 24 hours. The survey further found that security, affordability, and transparency are important factors for users of faster payment services.
Ten UX Strategies for Next-Gen Digital Banking Products
This article starts by discussing 10 obstacles to delivering next-gen financial products. It then moves on to highlight 10 UX strategies to switch a FI team to a next generation product design approach: 1. View Design as a Methodology, not as a Package; 2. Increase the Scope of UX Design Influence; 3. Challenge the Past; 4. Switch from Fragmentation to Ecosystem; 5. Put UX Research First; 6. Provide a Unique Value Proposition; 7. Drop the Obsession with Functionality; 8. Measure the Result by the Quality, not Quantity; 9. Focus on Emotions Instead of Information; and 10. Invest More in Improving User Experience.
~~
Cisco Rolls Out Digital Experience Monitoring
Cisco has unveiled its new Digital Experience Monitoring (DEM) software designed to provide visibility into every aspect of the consumer and employee digital experience. It uses data analytics, machine learning, and other tools to pinpoint performance issues in real-time, ensuring that businesses can deliver a seamless experience for digital users. DEM automatically detects the root cause of issues and provides recommendations to IT departments on how to address the issues directly.
Google Cloud Can Tie Together Multicloud Resources
Google Cloud has announced several updates to its platform, including the ability to manage and connect enterprise multicloud resources. The new Cloud Services Platform (CSP) will enable organizations to integrate their on-premise systems and Google Cloud services with third-party cloud providers such as Amazon Web Services (AWS) and Microsoft Azure. This will allow customers to manage and monitor their multicloud resources from a single console. The updated platform also includes enhanced security features, machine learning capabilities, and a new unified user interface.
Radware Cloud Web DDoS Protection Helps Block Tsunami DDoS Attacks
Radware has introduced a new Cloud Web DDoS Protection solution to minimize the growing gap between standard DDoS mitigation and an emerging generation of more aggressive, layer 7 (L7), HTTPS Flood attacks—also known as Web DDoS Tsunami attacks. The new security product is designed to provide real-time protection against a range of cyber threats that could compromise the availability of web-based applications and services. The service comprises of advanced security technologies that are incorporated within a cloud-based solution that benefits from machine learning and the use of big data analytics.
~~~
The AI Duo Contact Centers Need
While AI technology can handle simple or repetitive tasks such as routing calls or answering frequently asked questions, human agents are still necessary for complex or emotional interactions. The author states that pairing the two can lead to increased efficiency and better user experiences. However, he warns against relying too heavily on AI, as he feels that it still lacks the emotional intelligence and empathy that human agents can offer. He concludes that Generative AI is an exciting and rapidly evolving technology that has the potential to transform contact centers by improving efficiency and enhancing CX.
This article states that anything that contact center bots can do to reduce call volume and deflect effectively is a massive win. These are, however, some of the most challenging bots to build because they need deep integrations with other systems to answer very specific questions and resolve issues without escalating to agents. Bots are not a set-it-and-forget-it product - as users interact with it, they’ll ask questions and take uncharted paths that the bot needs to be trained on. It concludes that it is important to launch a bot as soon as possible...and get feedback.
~~~