Bank tech-trends News
 

August 28, 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

Computer accessory maker Logitech is introducing a mouse with a free-spinning motorized scroll wheel it believes will help people more efficiently scroll through pages. The cordless laser mice with an alloy wheel that spins for up to 7 seconds can scroll through up to 10,000 Microsoft Excel lines with a single flick. Users can stop the wheel by tapping it. A software program synced to the mouse can sense the user's application, and sends a signal to a small motor to engage or disengage the ratchets that regulate the wheel's speed during click-scrolling. They run $79 for the laptop model and $99 for the desktop model.

Iomega just released two new portable hard drives with host-powered operation features and "Drop Shock" protection technology. The drives are the Iomega Portable Hard Drive 120GB Hi-Speed USB 2.0/FireWire drive ($220) and the Iomega Portable Hard Drive 80GB Hi-Speed USB 2.0/FireWire Drive ($170). The drives measure 0.5-inches thin and weigh under 6 oz., and include EMC Retrospect Express backup and disaster recovery software. The Drop Shock technology aims to protect the drive and data from damage in case of "unexpected shocks."

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Software Updates

Cacti is a free network monitoring application that is fairly easy to setup and use. Cacti employs a technology called Round Robin Database, which stores and displays time-sensitive data in Cacti's MySQL database. The information expands over time, but Cacti stores it in such a way as to keep storage requirements low. The configuration is managed via a friendly Web-based GUI, and the program delivers its information via color graphs that are easy to show to senior managers. Larger banks may want a more enterprise-oriented solution, but for smaller banks that need a quick fix and introduction into why network and server monitoring data is so useful, Cacti should be a good first step. 

Besides encryption, bank laptops can be protected by other software solutions. One of the vendors in the field of laptop tracking is Absolute Software and their Computrace service. Subscribing laptops check with an Internet server once a day. If a machine is reported stolen, the next time it checks the server, it will be told to start checking in every 15 minutes. Using geolocation techniques and various databases, its IP address will be matched to a street address, where hopefully the police will be able to recover it. They can also erase the hard disk remotely. Pricing for the full Computrace service starts at $128.95 per unit for three years. Meanwhile, "kill switches" are used by Beachhead Solutions. When a machine using Beachhead's Lost Data Destruction service checks the server and sees that it has been stolen, it can commence erasing preselected files, overwriting them multiple times to preclude file recovery. Beachhead software also offers encryption. Single-user pricing is $129 per year.

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ATMs/Kiosks

The Pulse EFT Association and the Link Interchange Network have formed a partnership. This means that banks who are participants in the PULSE ATM/debit network will be able to offer their customers access to more than 58,000 cash machines operated by Link in the United Kingdom. A spokesperson said that this extension of ATM access into a region with high US tourist and business traveler traffic represents "a significant development for the international payments industry."

Some ATM deployers are utilizing sophisticated data mining techniques to extract valuable information out of their ATMs. They identify institutions from which they are most-often attracting cardholders, then develop targeted sales campaigns to acquire those cardholders. They target ATMs with high foreign transaction activities, and subsequently develop a targeted ATM advertising campaign to recruit those foreign cardholders as new customers. It can even go so far as to include special promotional screens that are displayed when one of the targeted cardholders performs a transaction at the ATM, and a bar-coded receipt used to claim an incentive in a branch when an account is opened.

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

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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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Biometric Digest Highlights - www.biodigest.com

Minnesota-based United Banker's Bank has deployed fingerprint readers, developed by Digital Persona, to anchor a multifactor authentication and single sign-on system for some 2,500 users. The bank picked fingerprints over security tokens because "tokens can be shared and a fingerprint cannot." On the back end, the system uses Active Directory and Windows Server 2003, and is complemented by a Digital Persona server to handle online registration and fingerprint data exchange. Users receive one free fingerprint USB scanner to get started and any assistance that they may need with the three-step installation process. The system also links the fingerprint reader into the PC's desktop screensaver so only the proper user can unlock the PC.

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Wireless World

Even though PIN debit is the fastest growing electronic payment category in the United States, some analysts believe that contactless cards could erode some of the growth if they catch on. Mercator analyst Tim Sloane said that "should signatureless/contactless solutions establish themselves in the consumer consciousness as being better than cash even in low-value transactions, it could increase the barrier of entry for PIN debit." 

Lenovo will compete with Dell, Sony, and Hewlett-Packard for business users by selling notebook PCs with embedded wireless broadband access from Cingular Wireless. Owners of a ThinkPad T60 PC will be able to access 3G (third-generation) wireless WANs (wire area networks) near 20 U.S. cities without using a separate PC card. Lenovo is selling the ThinkPad T60 for $1,899 with Intel Corp.'s Core Duo T2300 processor and an 80GB hard drive, or $2,259 with a T2500 processor and 100GB hard drive. For Internet access, users must also purchase a Cingular contract for $39.99 per month in the U.S. ($59.99 for unlimited use). 

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Security Section

Sophos PLC has released a free tool to help PC users root out rootkits. Called Sophos Anti-Rootkit, the security company claims that the software will detect and remove both known and unknown rootkits, and it will warn systems administrators if removing the software might harm operating system integrity. Sophos Anti-Rootkit works with the Windows NT, 2000, XP and Windows Server 2003 operating systems and features a graphical interface. Sophos Anti-Rootkit can be downloaded from the firm's website.

Some security experts are frustrated by scanning antivirus programs that can not keep up with the wide variety of malware threats. They argue that malware has continually morphed into something much more insidious in the last few years which makes it very difficult for traditional antivirus/antispyware to keep up. However, one vendor is taking a different approach to the problem - find out what it is in the upcoming issue of BANK tech-trends – subscribe now.

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Leaders Roundtable

Online Banking:

Expanding the Channel with Convenience and Security

The Boston Consulting Group - http://www.bcg.com   Read Carl Rutstein's comments: http://www.cunews.com/roundtable/BCG.pdf

Corillian - http://www.corillian.com   Read Alex Hart's comments:   http://www.cunews.com/roundtable/Corillian.pdf

Digital Resolve - http://www.digital-resolve.net   Read Dennis Maicon's comments:     http://www.cunews.com/roundtable/DigitalResolve.pdf

Green Armor Solutions - http://www.greenarmor.com   Read Joseph Steinberg's comments:    http://www.cunews.com/roundtable/GreenArmor.pdf

Harland Financial Solutions - http://www.harlandfinancialsolutions.com   Read Peter Nguyen's comments: http://www.cunews.com/roundtable/HFS.pdf

Hewlett-Packard - http://www.hp.com   Read Charles Gowin's comments:     http://www.cunews.com/roundtable/HP.pdf

Microsoft - http://www.microsoft.com Read Russ Paul-Jones' comments: http://www.cunews.com/roundtable/Microsoft.pdf

Online Resources Corporation - http://www.orcc.com   Read Stephanie Chaufournier's comments:   http://www.cunews.com/roundtable/ORCC.pdf

Open Solutions - http://www.opensolutions.com   Read Michael D. Nicastro's comments: http://www.cunews.com/roundtable/OSI.pdf

ProfitStars - http://www.manageforperformance.com   Read David Foss' comments:   http://www.cunews.com/roundtable/ProfitStars.pdf

TriCipher - http://www.tricipher.com   Read Sally Sheward's comments:   http://www.cunews.com/roundtable/TriCipher.pdf

uMonitor - http://www.umonitor.com   Read Dinesh Sheth's comments:   http://www.cunews.com/roundtable/uMonitor.pdf

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Technology and Marketing

Harris Interactive has come out with a new survey that shows that financial institutions ignore the youth market at their own risk. They found that youth 18 and under have an income of approximately $233 billion annually, and also play a significant role in household purchases beyond just youth-oriented products. The survey discovered that the "youth, particularly tweens, agree that they often pay close attention to advertisements to make sure they buy the right products (36% of tweens ages 8-12 and 22% of teens ages 13-18)."

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Online Banking/E-Commerce/Website Design

GuardID Systems Inc., a small company based in San Mateo, CA, is rolling out a product called the ID Vault. They say that it offers consumers a new way to protect themselves against phishers, pharmers and others who would steal identities online. The device, which looks like a keychain-size padlock, and its accompanying software offer a two-factor approach to protecting personal information. GuardID Systems is shipping to CompUSA, Circuit City, and Best Buy stores, plus it is available online at Amazon.com and Buy.com. Users install the ID Vault software on their computers and set up a "secure favorites" list of their bank, brokerage and other websites. They then store their sign-on information on the token in an encrypted format and create a single PIN for it. To use ID Vault, they plug the token into their computer's USB port and type in the PIN. ID Vault verifies the bank's Web address and makes the secure connection.

Visa USA says its volume on purchases less than $25 totaled $27.3B in the first six months of the year, an increase of 17% over the same period in 2005, indicating that payment cards are increasingly being used instead of cash and checks to pay for small ticket items. The company's 'no signature required' program has made low value payments more convenient for merchants and customers, it says, by waiving the signature requirement for qualifying transactions less than $25. Their research also found that consumers aged between 18 and 25 are leading the trend, with 60% preferring to use payment cards for purchases less than $25, particularly in new and emerging segments such as digital content, vending machines, public transport, parking and newspapers.

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Internet Access

Out-of-band management provides a means of centralized control and repair of local and especially remote IT infrastructure devices such as servers, routers, switches, etc. Core OOB technologies such as keyboard, video, and mouse (KVM) or Serial Console servers have been around for years. Some of the industry leaders in this space include: Avocent, Aten, Lantronix, MRV, and Raritan. Look for larger banks to enhance their OOB management tools due to the fact that the probability of failure increases with an increasing number of devices in the IT infrastructure and the failure of a critical device can affect large segments of users or services. 

NEC has launched a new hosting service called Managed IP Telephony (MIPT). Unlike a traditional hosted provider who typically hosts everything from the cloud and provides phones or gateways, NEC actually provides customer premise hardware. They will handle the patches and keeping the system up and running; plus, after the hosted term (3, 4 or 5 years), you are able to get new equipment. You can even add 10 percent more seats through the term of your lease for no added cost. NEC will also remotely monitor your IP communications network and can monitor your entire network and help with security for an additional cost.

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Call Centers

Numerous organizations have been able to reduce employee turnover and better serve their callers by deploying VoIP (voice over Internet protocol) systems that allow their agents to work from their homes or from small branch offices that are located close to their homes. By equipping them with a PC/laptop, IP softphone, and VPN link into the nearest full-service contact center, the agents simply appear as another onsite agent. Avaya and Sprint are looking to help with these efforts with their Sprint Hosted Contact Center solution. Basically, Sprint will host the contact-center gear in its own data centers, removing some of the start-up costs from IP-enabling contact centers. Another added benefit: Sprint is integrating e-mail, instant messaging and fax capabilities into the agent’s tool set. And to help remote managers track their employees’ progress, the service also records calls. 

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