Bank tech-trends News
 

September 18 - 22, 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

A company called PowerFile Inc. has launched a DVD-based storage appliance designed to make archiving data faster and retrieving it easier. They say that their Active Archive Appliance (A3) is less expensive than fixed disk-based archiving products and makes retrieving data easier than retrieval via tape. Basically, the PowerFile approach is for those who want some level of removability and permanence of media, yet want the benefit of spinning disk and reduced costs. The A3 presents itself to the network as a standard network volume and leaves a copy of frequently accessed data in the primary disk cache for fast retrieval. The PowerFile A3 starts at $15,900 for 3.4TB.

Another more affordable backup alternative to tapes is Iomega's Rev 70GB Drive. The Rev cartridge hard drive system is made up of a separate drive unit that contains all the sensitive electronics and a separate disk cartridge that contains the disk platter. According to Iomega, both the drive and the cartridges are manufactured for long-term use and both the drive and disk cartridge are designed to be resistive to dust intrusion. Iomega claims that the cartridge has a 30-year shelf life. Prices are: $600 (USB); $580 (ATAPI); $69 (single disk).

A Seattle-based company says that thirty percent of the energy consumed by a personal computer is wasted because people aren't in front of it. In response, they have developed software that remotely controls when and how desktops and laptops on a network go into an energy-saving sleep mode. Learn more about how this could save your bank money and help the environment in the upcoming issue of BANK tech-trends - subscribe today.

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ATMs/Kiosks

When it comes to deploying profitable ATMs, the old real estate adage of location, location, and location is what applies. Dove Consulting’s 2006 ATM Deployer Study shows that ATM profitability depends very much on where the machines are deployed, but in any case machine margins for all ATM deployers are increasingly under pressure. The survey, sponsored by the Co-op Financial Services, NYCE, Pulse, and Star networks, revealed that the thin margins on ATMs are driving financial institutions to view the devices more as customer-service technologies than as revenue generators. 

A new self-service kiosk that issues prepaid MasterCards is being rolled out by NCR and Ready Credit Corp. Ready Credit Corp. and Palm Desert National Bank are the first to go live with the machine that allows consumers to purchase a ReadyCARD Prepaid MasterCard that is activated and ready to use immediately. The ReadySTATION also allows consumers to reload personalized ReadyCARDs and check their card balances for free.

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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AuthenTec, a provider of biometric fingerprint sensor security, has won the Wall Street Journal's 2006 Technology Innovation Award for IT Security and Privacy. AuthenTec was selected over 600 companies considered worldwide. AuthenTec sensors are used in 150 different models of notebook and tablet PCs, including those made by 7 of the world's top 10 PC manufacturers. Each AuthenTec sensor is based on the company's patented TruePrint technology that reads below the surface of the skin to the live layer, where the true fingerprint resides.

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With wireless LAN (local area network) equipment falling in price, it is rapidly becoming a commodity. Just as importantly, some analysts believe that the upcoming 100+Mbps 802.11n standard will effectively erase the boundary between wireless and wired, making wireless a routine part of an enterprise network. That is not to say that wireless replaces wired everywhere - but certainly, network administrators will be less likely to balk at a wireless component than they have in the past. Of course, security still remains the biggest stumbling block for banks, and many experts believe that is the area where the most action will take place.

A firm by the name of Xirrus just introduced what it is calling the industry's first QoS (quality of service) capability for both switched Wi-Fi and wired networks. QoS controls are important for supporting time-dependent applications such as voice or video. Xirrus' technology is bi-directional and the company claims that their technology extends the QoS used on a wired network to a wireless network.

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Research firm IDC says that malicious software is no longer primarily making its way in to corporate networks through e-mail, as in the past. Their survey shows that up to 30 percent of companies with 500 or more staff have been infected as a result of Internet surfing, while only 20 to 25 percent of the same companies experienced malware attacks via e-mails. IDC believes that banning personal Internet use isn't realistic, particularly as a long-term solution. Instead, they recommend closer monitoring of employees' Internet use and using tools that give management an overview of time spent and behavior patterns online. 

Javelin Strategy and Research is reporting that data breach hype is misleading consumers. Their research shows that data breaches were responsible for only six percent of all known cases of ID fraud in both new and existing accounts over the past year. The real causes of ID fraud were found to be lost or stolen wallets, checkbooks and credit cards, which account for 30% of ID fraud. Other causes include data stolen by friends, acquaintances, relatives or corrupt employees. 

Texas-based Amicus announced the general availability of Amicus KYC 1.2, the latest update to their customer identification program and Anti-Money Laundering solution. Amicus KYC is a hosted web service that enables compliance with customer ID regulations such as the USA PATRIOT Act. Amicus KYC checks names (by individual record or batch), SSN/TIN, and addresses against eight separate, international (U.S., Canada, U.K.) government maintained databases, flagging records requiring further action.

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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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More and more banks are turning to "Green Loans" to drive loan volumes and get good publicity in their communities. Customers can save 50 basis points or so on loans for hybrid vehicles, for instance. However, some institutions are going a step further with "Green Mortgage" programs. If a home has received an Energy STAR rating, then it will qualify for a 50% reduction in origination fees and 100% financing for qualifying customers.

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Entrust announced that it will provide a warranty to new US customers who enroll in their Zero Touch FFIEC Compliance Solution by upcoming 16. The firm says that their solution will meet the FFIEC guidelines for online authentication, and that their approach requires no changes to the bank's website and can be implemented and operated without making changes to back end applications.

Aberdeen Group says that organizations have much to gain from using payment cards. Their recent study of payment card usage shows significant benefits with payment card programs in three primary areas: 

-- Reduce Transaction Costs - utilizing payment cards was shown to collapse the cycle time and overall cost to process invoices and expense reports. 
-- Improve Compliance - the automated transaction reporting and processing that is achieved with payment card usage enables organizations to significantly reduce unauthorized purchases by employees and effectively monitor transactions.
-- Improve Negotiated Savings - payment cards enabled increased visibility and control over spend, thus organizations were able to negotiate greater discounts with suppliers.

EXPERIENCE THE DIFFERENCE!

ARE YOU DELIVERING THE BEST ONLINE EXPERIENCE YOU CAN TO YOUR CUSTOMERS?

Advanced Features: Corillian provides industry-leading online features for Consumers and Businesses which have been rated best in the industry

Unmatched Usability: Corillian has invested years of best practices in delivering the most compelling and user-friendly online experience

Industry-Leading Performance: Corillian customers are recognized for their high performance and reliability

Proactive Security: Increase user confidence through proactive protection of financial assets and support FFIEC guidance for strong authentication

LEARN MORE ABOUT THE CORILLIAN ONLINE EXPERIENCE AT:

 WWW.CORILLIAN.COM

OR CONTACT US DIRECTLY AT:

INFO@CORILLIAN.COM

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Internet Access

Many organizations are intrigued by the numerous benefits of installing a VoIP (voice over Internet protocol) system, but are concerned about the costs of the hardware and software. One affordable option is to consider a hosted VoIP service that allows you to get up and running quickly with little capital outlay. In the upcoming issue of BANK tech-trends we will offer some suggestions about what your bank can do from a business and education perspective to get started with hosted VoIP - subscribe today. 

Instant messaging (IM) is very popular with youngsters, and has even made its way quite deeply into the brokerage industry. But now some banks are looking at supporting it at their branches. Proponents say that not only can employees use it to discuss new services or get quick answers to questions, but they can also use it to communicate with busy customers. For instance, customers can use IM to request quick transactions — such as account or wire transfers — or get quick loan rates and possibly even pre-approvals. Some analysts predict that the popularity of IM among younger people will encourage more banks to support the service over time, especially for a bank that is trying to differentiate itself and appeal to young adults and college students.

Just about everyone knows about DSL and cable, and many more are at least familiar with broadband over powerlines, but now there may be a new alternative for high speed Internet access: BIG (broadband over gas). Nethercomm, a San Diego-area start-up, says it has developed technology to send lightning-fast broadband and TV services via wireless signals through the pipes that deliver gas to homes and businesses. In action, an ultrawideband radio transceiver would send wireless signals (up to 6 megabits per second) through natural gas pipes, and the company claims that the signals would not interfere with gas delivery or present any risk of explosion. They also say that their build-out costs are about $200 per household. By contrast, broadband over power lines costs about $600 per household, while phone and cable TV networks each cost well over $1,000 per location.

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Call Centers

Knowlagent has revamped their Knowlagent r8 system into four new, individual offerings. They are: 

-- Knowlagent Job Match, which is positioned as delivering immediate improvements in attrition and productivity by providing call centers with the right individuals from the start and placing them in areas where they will be the most effective and productive. 

-- Knowlagent Initial Training, which is designed to reduce time and costs in training in the call center through proven processes, content and realistic simulations and testing that will help improve productivity with new agents.

-- Knowlagent Continuing Training and Communications, which is intended to improve agent performance by finding time for ongoing training and communication without taking agents off the frontline.

-- Knowlagent Coaching and Performance Management, which provides the necessary tools, processes, skills and measurements to effectively coach and change agent behavior while allowing management to measure the impact of coaching activities.

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