BANK tech-trends News
 

November 5 - November 9, 2007

• 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

SMC Networks is shipping a new line of LAN edge switches: the TigerSwitch Standalone 26-port 10/100/1000 Managed Switch, and a 50-port version, as well as a 24-port version that supports Power over Ethernet. All of the new switches will have "combo" ports for fiber-optic uplinks. The switches feature application filtering, per-port bandwidth management and MAC-based security. SMC says the switches also have IP clustering capabilities that allow up to 32 switches to be managed as a single system; with current products, that means up to 1,664 ports can be managed as one system.

For system administrators who have to be ready to cope with all manner of hard disk-related emergencies, there is a new tool to help them handle SATA drives. It is a $15 eSATA adapter from a firm called Brando that will allow you to plug your SATA disk drive into a USB slot for a quick diagnosis or emergency work. All you need is a $10 power supply to fire up the drive. Plus, no driver is need for Windows ME/2000/XP/Vista.

MagTek®’s ExpressCard 1000 is the industry’s first “ALL-IN-ONE” instant issuance and complete card personalization platform forCredit, Debit, ATM, and Financial Gift Cards designed to fit securely and comfortably within a branch location.

For the first time, card personalization features such as color card-printing, magstripe encoding, smartcard encoding, card embossing, indent printing, and foil tipping have been combined into a single device which provides both the physical and logical security features required to meet the demands of a branch or retailer’s card issuing environment.

Equipped with MagnePrint® card authentication technology (www.magneprint.com), the ExpressCard 1000 offers the capability to capture the card's reference MagnePrint at the time of card issuance so that reference value may be used in conjunction with complementary risk management analytics with card present transactions. The ExpressCard 1000 can be connected as a peripheral to MagTek’s IntelliCAT and MCAPS 3000 PIN selection and instant issuance software suites creating a complete and secure card issuing platform.

For more information on ExpressCard 1000, go to www.magtek.com or call your MagTek sales representative at 800-788-6835.

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ATMs/Kiosks

The TowerGroup has released a report entitled “Self-Service Coin Counting at the Branch: Time to Change Attitudes About Loose Change.” In it, they note that almost $3 billion in coins is redeemed at supermarket self-service coin-counting machines annually, and nearly $6 billion in coins are brought into U.S. branches annually. They point out that if financial institutions charged the same fee that retail locations charge for coin redemption, the service would represent a $500 million market for banks.

St. Louis-based JBM Electronics announced the release of the Gateway C201 Router with dial-tone emulation. The C201 features a protocol-conversion engine that takes dial-modem data and converts it to packet-based TCP/IP for routing over a cellular network. The C201 integrates with most ATMs and is a single-box solution. The C201 has been certified with Verizon Wireless, AT&T Mobility (formerly Cingular), Sprint and Alltel.

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If your bank is considering voice biometrics for your telephone banking system and call center, you will need a roadmap. We will provide one in the upcoming issue of BANK tech-trends - subscribe today.

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According to a report from Juniper Research, near field communications (NFC) applications built into mobile devices will skyrocket over the next few years, with the value of the market rising from $77.6 million in 2007 to $11.5 billion in 2011. The firm predicts that the total transaction value for all mobile payments - including remote systems like SMS and WAP as well as contactless - will be $22 billion in 2011 compared to just $2 billion in 2007. The study found around 12% of all mobile phones in circulation - nearly 470 million - will support NFC by 2011. NFC proponents say that there will be an opportunity for an account balance to be shown before the payment is made, making sure the spender does not go overdrawn, and for vouchers and incentives to be redeemed alongside the purchase.

Unlike credit, debit or contactless cards, mobile phone-based payments can support four transactions: consumer-to-consumer, consumer-to-business, consumer-to-machine (parking meter, soda machines, etc) and consumer-to-online. Some analysts argue that the current rollout of contactless cards is nothing more than a transitional technology on the way to NFC-enabled mobile phones and PDAs. We will cover these trends in the upcoming issue of BANK tech-trends - subscribe now.

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Unlike traditional identity thieves, who pilfer people's information to get loans or make purchases, "synthetic identity" fraudsters mix legitimate and phony data. There are no reliable figures documenting losses from synthetic identity fraud, but many say the problem is growing. Research firm Gartner estimates that synthetic schemes constitute at least 20% of credit charge-offs and 80% of losses from credit-card fraud. This kind of fraud doesn't usually directly affect consumers - the big losers are financial institutions which get stuck with loan defaults and unpaid credit card bills.

In a related story, banking regulators just instituted new rules that will require all banks to adopt comprehensive procedures to prevent and resolve identity theft. Under FACTA Sections 114 and 315, financial institutions and creditors are now required by law to adopt procedures to reduce the risk of identity theft by examining consumer address changes on both new and existing accounts. The rules take effect on Jan. 1, and financial institutions will have until Nov. 1, 2008 to comply.

A company called NetVigilance is targeting smaller organizations with their vulnerability assessment software and services. Their SecureScout NX 2.6 software checks for over 3,000 exploits used by attackers against network devices. Pricing for 100 IP addresses starts around $3,000 per year. NetVigilance sells online scanning services through its online host, but it also sells software for in-house use. They also offer a free trial version that checks 15 devices.

MAGENSA™ is a trusted verification authority (TVA) that provides real-time remote-hosted credential authentication services. These services enable banks, businesses, and government agencies to integrate PCI DSS and FFIEC multi-factor authentication and end-to-end data encryption capabilities into their existing processing environments without the need for substantial financial investments or massive changes to the existing infrastructure.

Specifically tailored to enhance the security of internet banking and ATM applications, MAGENSA delivers unprecedented security and authentication using the familiar magstripe card credentials (secure tokens) that a bank has already issued to its customers. MAGENSA is powered by the trusted and proven card authentication technology known as MagnePrint® (www.magneprint.com). MagnePrint differentiates a customers’ authentic magstripe card from an altered or counterfeit version, transforming the traditional magstripe card into a powerful security token.

MAGENSA’s Secure Data Center (SDC), a reliable 24x7 operations center that is maintained 365 days a year, simplifies the integration of data decryption and MagnePrint scoring into existing websites, and allows for data federation across institutional domains.

For more information on MAGENSA, please visit www.magensa.net or call 877.MAGENSA.

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ONLINE BANKING: 

Embraced by Customers - The Next Steps

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

First Internet Bank - http://www.firstib.com Read David Becker's comments: http://www.banktt.com/roundtable/FirstInternet.pdf

Microsoft - http://www.microsoft.com Read Greg Haislip's comments: http://www.banktt.com/roundtable/Microsoft.pdf

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

TowerGroup - http://www.towergroup.com   Read George Tubin's comments:   http://www.banktt.com/roundtable/TowerGroup.pdf

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

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THE CENTSABLES is a multi-media project geared toward teaching kids about financial literacy. Components of the project include an animated television series, interactive website, banking programs for kids, a classroom module including teacher lesson plans, and extensive merchandising including collectible action figures, games, trading cards, clothing and other products. The Banking for Kids program is a turn-key opportunity for banks to encourage saving and good financial management for youngsters. The welcome kit includes a special savings account, free gift, collectible action figure and DVD of THE CENTSABLES pilot television episode. The proprietary program also includes in-branch training and ongoing employee support, personal appearances by CENTSABLES characters, all branch signage and rack brochures, plus a targeted print advertising campaign for existing and potential customers.

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Consumers under 35 years of age are developing very different online payment habits from adults over 35, says JupiterResearch. The research firm says 48% of consumers aged 25 to 34 prefer debit cards for Internet transactions, as compared to only 39% of all online consumers. Thirty-four percent of online consumers aged 18 to 24 prefer PayPal or similar alternative payment services versus 27% of all online consumers. “Card issuers must keep an eye on the emerging data habits of younger adults, and pay special attention to how their payment and data preferences feed into tomorrow's payment-product and form-factor innovations,” says Jupiter Research President David Schatsky. “Issuers need to establish an early understanding of younger adults' likes and dislikes with regard to emerging payments services.”

In the latest of three reports on the prepaid card market, Mercator Advisory Group forecasts total load value will reach $421.5 billion in 2010, with closed-loop cards accounting for $239.9 billion and network-branded cards controlling $181.6 billion. Network-branded value will grow at a compound annual rate of 53% from 2006 to 2010, compared to 8.1% for closed-loop. In related news, Visa announced that it will allow consumers to customize their gift cards this holiday season with personal photos or other images. Beginning Nov. 15, users will be able to design their own Visa gift card at the company's giftcardlab.com.

Revolutionary Convergence of Security Technology for Secure Internet Banking!

MagneSafe^TM P55 is a portable card reader/authenticator with four key technologies for secure online banking: Cardholder Data Encryption, MagnePrint^® card authentication technology, Website Authentication and Track 1, 2 and 3 card reading capabilities. In conjunction with MAGENSA^TM, the MagneSafe P55 is designed to offer secure, multifactor authentication for Internet banking, empowering consumers with the freedom and confidence of knowing that their transactions are protected anytime, anywhere.

MAGENSA, a Trusted Verification Authority that provides real-time, remote-hosted credential authentication services, allows credit unions to integrate PCI DSS and FFIEC compliant multifactor authentication, data encryption, website authentication, and data federation capabilities without the need for substantial financial investments or massive changes to the existing infrastructure.

For more information about the MagneSafe P55 or MAGENSA, visit www.magensa.net, or call 877.MAGENSA.

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Internet Access

Small banks may want to take a look at Speakeasy's two new voice services for small business. The Seattle-based firm, a Best Buy company, is introducing new additions including Voice over Speakeasy's 15 Mbps broadband and a Small Office Calling Plan which can be used with any broadband service. The upgrades are designed for small businesses that want download speeds of up to 15 Mbps, as well as ADSL2 broadband with VoIP. In addition to voice over ADSL2, customers receive Speakeasy's voice-optimized nationwide network and uptime and quality of service guarantees. Speakeasy's EasyVoice Small Office Calling Plan will offer organizations with five employees or fewer the option of using any broadband service provider, and is priced at $19.95 a month, per employee.

Dell plans to sell unified communications products from Microsoft and Nortel Networks. A long-time Microsoft partner, Dell will be selling the new Office Communications Server 2007 and other unified communications products just launched by Microsoft in pre-tested configurations with its hardware. Meanwhile, Nortel said Dell will sell its Enterprise Solutions portfolio, including its VoIP, data and wireless networking products.

There are many advantages to combining local, long distance and Internet services. A major telecom player is rolling out a new solution that is positioned for businesses that need a single, reliable network to provide voice and data access for 6-48 employees per location. We will cover it in the upcoming issue of BANK tech-trends - subscribe now.

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Call Centers

BBN Technologies is calling their AVOKE Call Browser "a new and different kind of analytics solution." They say that it looks at your call center from the perspective of your callers - from the moment the caller dials your contact number until the finish when they hang-up. The AVOKE Call Browser is an on-demand analytics solution that can be used for a few months to get objective data and insights for your strategic plan, or used for a year as a tool for continuous process improvement and customer experience management. They tout that their patented BBN technology transparently captures end-to-end calls, extracts caller experience data, summarizes cost-per-call and reveals dissatisfied callers.

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