Bank tech-trends News
 

October 2 - 6, 2006

• 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

Hardware News

After 50 years, the useful life of the hard disk drive is increasingly being threatened by new technologies. Over the past five decades, the hard disk has evolved from a 5MB storage device with 50 24-in. disk platters about the size of a household refrigerator to tiny 1-in. 8GB devices. Unfortunately, there is somewhat of a battle brewing over the next generation devices. Intel is backing a technology called Robson, where a large amount of data and applications will be stored in flash memory so that the processor won't have to retrieve it from the hard drive. Meanwhile, Samsung, Microsoft and Seagate all have their eye on the hybrid hard drive, where the flash is inside the hard drive. Although the two technologies aren't contradictory, it wouldn't make sense for a PC manufacturer to implement both, so companies are lining up on one side or the other.

Any bank that is thinking of buying PC hardware in the next few months must keep an eye on the future. If you are ready to buy a PC now, with an eye toward upgrading to Microsoft Vista down the road, experts recommend choosing a Vista Premium Ready machine rather than choosing one that supports only Vista Basic. We will provide some tips in the November issue of BANK tech-trends that will help you get the most out of your hardware - current and future - for many years to come - subscribe now.

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ATMs/Kiosks

CNN recently screened a surveillance video of a man suspected of reprogramming a Tranax ATM to dispense $20 notes when he requested a $5 note using a pre-paid card. The reprogrammed ATM dispensed those funds for nine days. Security researchers discovered that ATM manuals for the Tranax Mini-Bank 1500 Series could be easily located online and include typical factory-set default passwords. Tranax categorized the crime as more of an operational issue than a security problem, but in response they are developing a software patch that will make default password changes mandatory on all of its new ATMs. All ATM deployers are being advised to immediately verify their ATM security codes and make sure default codes have been changed.

In a related story, the Global ATM Security Alliance, part of the ATM Industry Association, has issued a fraud alert warning deployers about criminals who pretend to be ATM engineers. Using social engineering techniques, the scam artists request an access code for the ATM’s safe, claiming they need to "update the machine." They then appear on-site with fake IDs in hand to "work on the ATM." GASA advises ATM deployers to never provide any information to anyone regarding access codes, security procedures, etc., and to always call your service provider and ask if a service engineer has been dispatched to your site.

With the holidays around the corner, your bank may want to take a look at the toy ATMs offered by Summit Products (www.summittoy.com). Their "Youniverse ATM" won a "2005 Oppenheim Toy Portfolio Gold Seal Award." You can make a deposit into the bill feeder, plus the machine also recognizes and counts coins, and tracks your account balance.

Looking to increase Brand Recognition and provide members with surcharge free ATMs?

Nationwide Money Services, Inc.’s Branded Cash Program is the answer. Fully endorsed by the VA Credit Union League and the CU 24 Network, our Branded Cash Program provides the ATM equipment, great locations, processing, maintenance, insurance, marketing rights and surcharge free transactions for your members, you only provide the cash and cash services for the ATM just as you would if you owned them. The ATMs look and act like your own, extending your reach or filling out your current market.

Our current CU partners include: AEDC, Beacon, Bronco, Carolina Collegiate, Educators, Freedom First, Food Lion Credit Association, Heritage Trust, Martinsville Dupont, NSWC, Old Hickory, Peoples Advantage, Southeast Financial and US Courthouse.

NMS also offers their ‘ATMs Made Easy’ Program for full service ATM management and placement services if you like the idea of having ATMs, but don’t want the hassle of day to day management and the associated costs for maintenance and unplanned expenses like triple DES.

For more information about the Branded Cash Program contact Bob Colabrese, EVP of Sales & Marketing at:

904-395-1147 or

bob.colabrese@GLXS.biz

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American Barcode and RFID said that they have created a new technology - TETRAGATE - which combines RFID (radio frequency identification) technology inside an employee ID card with biometric facial recognition. The firm claims that TETRAGATE recognizes people approaching from 60 feet away in a fraction of a second, reading up to 60,000 faces in a single second. Secondary identification is made as individuals' RFID credentials are read and matched to biometric records. Any exception to the match-ups triggers a security situation, based on business rules in place, focusing on the specific individuals, while others continue on uninterrupted.

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Wireless USB devices are one step closer to being reality as Staccato Communications submits six potential products to the FCC for certification. Proponents say that wireless USB will transform how we connect digital cameras, scanners, printers and flash drives to computers. Unfortunately, wireless USB devices are still a way off because of the lengthy testing and certification processes that manufacturers have to go through. Initially this process will be overseen by Intel’s Wireless USB Platform Integration Lab.

Over in the United Kingdom, financial services firm Mint has launched a text alert service that enables customers to review transactions and balances and to make payments to their credit card bill using SMS messages. The system works by sending customers a text alert to coincide with the issue of their monthly statement. The message contains details of the minimum payment required and outstanding balance, to which customers can reply by text for free, detailing the amount they would like to pay. The transaction is completed following an exchange of confirmations. In addition to the payment service, Mint is introducing text-based statement and balance services. By texting the word 'statement' cardholders can receive a text message containing details of their last five transactions. By sending the word 'balance' customers can also gain their latest balance along with the available credit left to spend.

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When it comes to security, bank IT workers need all of the help that they can get. Fortunately, there are many vendors and developers that release free and useful security software. We will cover some of the best ones in the November issue of BANK tech-trends - subscribe now.

A new company called BitArmor has come out with its Security Suite that they say can protect company data anywhere at anytime. BitArmor Security Suite’s features list includes in-flight encryption, data protection regardless of the media used, and centralized control of security and retention policies. Security Suite relies on a central server that hosts policies, users, and their privileges. The targets include Windows environments, servers, desktops, and laptops, where a BitArmor agent on each machine enforces data access policies according to instructions received from the central server.

According to the bi-annual Internet Security Threat Report from Symantec, more than 157,000 unique phishing messages were sent out around the world in the first half of 2006, an increase of 81 percent compared with the six-month period to ending December 2005. The report also notes that phishers have become more sophisticated, dodging filters and other defense mechanisms. "Organized crime is here and they are very interested in phishing. They target home users who have become the weakest link," said research scientist Ollie Whitehouse.

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Stay Tuned for Upcoming Leaders Roundtables! 

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InfoStreet Inc. offers a fully managed, on-demand IT software suite, StreetSmart, that includes Sales Force Automation and Customer Relationship Management (CRM) modules. All information is centralized and online, and can be securely accessed from anywhere there is a Web browser. CRM information can be tracked at three interrelated levels, Contacts, Organizations, and Opportunities, each with its own events, status, comments, history and follow-up actions.

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InetSolution, a full service website design, development and interactive marketing and consulting firm, is offering banks their "Website Return on Investment Calculator." They say that the calculator will help you gauge how effective your bank website is compared to other financial institutions whose results and best practices have been used to establish the default values on the site: http://www.inetsolution.com/roi/start.asp

According to IT consultancy Keane, financial institutions are not keeping up with consumers' appetites for online financial planning assistance. Keane's research found that financial institutions are failing to tap into a growing market for online financial advice on topics ranging from retirement to college savings plans. The firm believes that financial institutions are missing a big opportunity by failing to use their sites to reach what they call "aspiring planners" — the 61 percent of those surveyed who want and need help to plan for their financial future. They recommend the addition of planning tools that are interactive and fun to use.

In a related story, one financial services firm utilizes an "intelligent cash optimizer" application on their website that has been an enormous success. Learn more about it in the November issue of BANK tech-trends - subscribe today.

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Internet Access

There is a wealth of hosted PBX (Private Branch eXchange) service providers that have entered the market over the past several years, and SageCom Inc. is one of the latest entrants. They offer a hosted PBX service in connection with its SageVone VoIP system that essentially offers everything an in-house PBX system would. That includes overseeing main telephone line connectivity, call center capabilities, voice mailboxes, teleconferencing operations and other services. The system is SIP-compatible, making it interoperable with most of the feature-laden phone systems on the market. All settings are Web-based and user-configurable. It also sports an integrated Windows toolbar tied to Explorer and Outlook, providing caller ID and other features. The firm claims that small organizations "can have all the features that a Fortune 100 company has at $30 per month.”

For those banks that prefer an affordable in-house VoIP system, Patton Electronics, maker of the popular SmartNode and SmartLink VoIP solutions, and Pingtel Corp., maker of SIP-based communications platforms, have teamed up to deliver the SIPxNano - a tiny IP-PBX designed for small businesses with under 30 extensions. Features include integrated voice mail and email, auto attendants, interactive voice response, and Web-based configuration and management. The sub-$1000 device is fully compatible with all industry standard IP devices including Polycom phones and Patton’s line of VoIP phones, gateways and routers.

Yet another option is Covad's ClearEdge Office, which they say is "the first combined VoIP and high-speed Internet offering built specifically for very small businesses." The service is targeted at businesses with between five and 19 employees. Although the service is a VoIP-based phone service, the Covad-supplied equipment and installation includes a gateway so customers can continue to use their existing analog phones. The phone service includes traditional business voice calling features like call waiting, call forwarding, and hunt groups as well as VoIP provided features like a Web-based dashboard and follow-me/find-me functionality. The data connection uses DSL for the data and voice lines and includes a “voice-optimized access solution” that preserves VoIP call quality by prioritizing voice over data traffic on every call.

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Call Centers

KANA Software supplies what they call "multi-channel customer service solutions." There are four main constituents of the KANA suite:

Response, which handles email in and out
Response Live, which provides for online collaboration
Contact Center, for dealing with telephone calls in and out
Self Service, which works via the Web

The products run on Microsoft Windows, Linux and the main varieties of UNIX, IBM WebSphere Application Server and BEA WebLogic Application Server, and work with Oracle, IBM DB2, and Microsoft SQL Server databases. There is also a hosted option, called KANA OnDemand. KANA has just created a sales team specializing in the financial services market.

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