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Filed on September 4, 2009–September 6, 2009, published the first business day after.
- Inside Washington
- House to commemorate Federal Credit Union Act
- Matz continues to explore CARD Act concerns
- NCUA announces agenda for first town hall meeting
- Contactless debit, mobile use aim to attract members
- Businesses surviving under CU’s preferred program
- Invest in America adds Allied Van Lines
- Iowa CUs benefit from serving Hispanics
- 90% of U.S. currency tainted by cocaine
- Deputies help Florida tellers prepare for heists
- Lockheed, L.A. Police collect contributions for fire victims
- Teacher, 13, wins Landmark’s Biz Kid$ contest
- CU System briefs
- Market News
- News of the Competition
- Open Solutions launches Veri-Fast to verify IDs
- Products and Services brief
Inside Washington
- WASHINGTON (9/8/09)--The U.S. Small Business Administration (SBA) has raised the amount of goodwill value a lender can finance when making a loan to the buyer of a small business to $500,000 from $250,000 (American Banker Sept. 4). SBA also eliminated a provision requiring that goodwill financing can amount to no more than half of a loan value for the purchase of a small business ...
- WASHINGTON (9/8/09)--Financial observers continue to speculate about the future of Fannie Mae and Freddie Mac, which were taken into conservatorship last year. Some have suggested turning the GSEs into a public utility model, allowing them to create special purpose vehicles to operate in the secondary market, or forming a good bank/bad bank structure. The Obama administration has said it would not move to change the GSEs until early 2010 (American Banker Sept. 4). The changes to Fannie and Freddie likely won't happen fast, said John Courson, president/CEO of the Mortgage Bankers Association. Judy Kennedy, CEO of the National Association of Affordable Housing Lenders, said maybe Fannie and Freddie can't be helped ...
- WASHINGTON (9/8/09)--European countries are pushing to make bankers' pay and bonuses a top agenda item for the Group of 20 (G-20). However, Treasury Secretary Timothy Geithner has not brought up the bonus issue; instead, he favors discussing a new international accord to increase banks' capital (Associated Press Sept. 4). A new accord could put in place a more conservative framework of constraints on leverage in the financial sector, he said. The Obama administration has proposed stronger international standards for the reserves banks hold to cover losses. The U.S. hopes to get an international agreement on the accord by the end of next year, with implementation by the end of 2012 ...
House to commemorate Federal Credit Union Act
WASHINGTON (9/8/09)--The House of Representatives returns to Washington from summer recess this week, and one item on the table is H.Res. 556, a bill that recognizes the 75th anniversary of the passage of the federal credit union act.
Credit Union National Association (CUNA) officials have been told that the commemorative bill, which celebrates the "vibrant Federal credit union community that was created" following the passage of the Act, would be considered under suspension of the rules this week.
The bill also recognizes credit unions for their past service to the country as well as their continued "valuable services" provided to their members and the "economic stimulus" that credit unions have provided to the Nation "even as we face a financial crisis today."
The recognition precedes CUNA's 75th anniversary celebration, which will be held in Estes Park, Colorado. A number of CUNA committee and board meetings will also take place during the celebration, which is scheduled for September 14-17. National Credit Union Administration board member Gigi Hyland is also scheduled to speak during a meeting of board members.
Matz continues to explore CARD Act concerns
WASHINGTON (9/8/09) – Newly installed National Credit Union Administration (NCUA) Chairman Deborah Matz continues to examine credit union compliance hurdles related to the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act.
On Friday, Matz gathered several credit union officials and representatives of the Credit Union National Association (CUNA), CUNA Mutual Group, and National Association of Federal Credit Unions to further explore and discuss the issues. Credit unions represented included Boeing Employees CU, Holy Rosary CU, American Airlines FCU, Missouri Central CU, and Justice Department FCU.
Matz indicated NCUA has initiated efforts on Capitol Hill to get federal lawmakers to consider a legislative fix to the 21-day rule that is bedeviling credit union compliance efforts, reported CUNA Deputy General Counsel Mary Dunn, who represented CUNA.
The CARD Act aims to prevent lenders from making arbitrary changes to interest rates and terms associated with credit cards that have an existing balance. However, credit unions have serious compliance challenges trying to meet provisions that prohibit creditors from treating a payment as late for any purpose, including reporting the late payment to the credit bureau, unless that creditor adopts reasonable procedures to ensure that periodic statements are delivered to consumers no later than 21 days before the payment due date.
Matz reiterated at the Friday meeting that federal credit union examiners are being asked to take a close look at a credit union's good-faith efforts to comply with the new law and demonstrate flexibility for a reasonable time while credit unions are developing compliance programs under the new law.
Dunn said Matz, while saying credit unions need to respect the law, indicated a great deal of sympathy for credit unions trying to sort through what they need to do. She indicated a communication has gone to examiners directing them to work positively with credit unions that are making good faith efforts to comply.
CUNA, the Connecticut Credit Union League, and other league representatives, have also been working toward a legislative fix to some of the compliance problems. In the meantime, Senate Banking Committee Chairman Christopher Dodd (D-Conn.) in August urged the Federal Reserve Board to provide relief to credit unions regarding the 21-day rule Act as it applies to open-end plans other than credit cards.
In a letter to Federal Reserve Board Chairman Ben Bernanke, Dodd urged the Fed to allow credit unions "more time to come into compliance" for such open-end plans.
CUNA has prepared a document to assist state leagues and credit unions with credit unions' questions regarding their compliance obligations under the Credit Card Accountability, Responsibility and Disclosure (CARD) Act provisions--especially on the 21-day periodic statements provision.
Use the resource link below to access the document.
NCUA announces agenda for first town hall meeting
ALEXANDRIA, Va. (9/8/09)--The National Credit Union Administration has announced the agenda for the first of three planned town hall-style meetings.
The first meeting, which will take place outside of St. Louis, Mo. in Clayton, Mo. on September 15, will include two lengthy question and answer sessions. The meeting will also feature opening and closing remarks from NCUA Chairman Deborah Matz.
Other topics scheduled for discussion during the meeting include the ongoing implementation of the corporate credit union stabilization plan and the NCUA's pending rulemaking on the corporates.
NCUA Deputy Executive Director Larry Fazio, NCUA General Counsel Bob Fenner, and Office of Corporate Credit Unions official Scott Hunt will also speak during the meeting.
Contactless debit, mobile use aim to attract members
BOSTON (9/8/09)--Attracting new members, especially younger ones, remains a critical challenge for more than half of credit unions, says a recent study. As a result, some credit unions are altering their marketing strategies and testing products such as contactless debit cards and mobile banking services.
More than 55% of credit unions have trouble attracting new members, according to a report by Boston-based Aite Group LLC. They are testing innovative products in hopes of attracting Gen Y consumers--the 76 million consumers ages 29 to 33 (ATM & Debit News Sept. 3).
In January, PSCU Financial Services, a credit union service organization (CUSO), launched its contactless debit card a week after it announced it would resell mobile-banking services to its member credit unions.
More credit unions may choose to convert to contactless debit cards now that huge merchants such as Best Buy and Home Depot accept their payments, Ron Silvia, PSCU director of debit and ATM product services, told the publication. Like PIN-debit, contactless cards have started out slow because of the investment. But once the return on the investment is realized, merchants seem to be moving swiftly to them, said Silvia.
Gen Yers would like contactless payments because they like instant gratification. When they check out, they want to do so fast, Silvia said.
CO-OP Financial Services recently signed partnership agreements to promote mobile banking--something that is popular with Gen Yers--to the credit unions it serves. CO-OP told ATM & Debit News that credit union services need to be more relevant--credit unions can't be the parents' credit union and stay relevant to the Gen Yers.
CO-OP is also piloting contactless debit card products with two credit unions and has the infrastructure to process such transactions, said Kim Hester, CO-OP Financial executive vice president of network services.
According to Aite, credit unions studied say they are increasing their social networking marketing through Facebook and Twitter to attract new members. Eighteen percent of credit unions surveyed said using social networking was a high priority, while 32% said they were considering it.
Businesses surviving under CU’s preferred program
TOTOWA, N.J. (9/8/09)--North New Jersey businesses are participating in a program created by North Jersey FCU (NJFCU) as an alternative for businesses to reach new customers. The program offers exclusive discounts and perks for NJFCU members, the credit union said.
The NJ Preferred program debuted last week.
Although NJFCU has not been immune to the severe economic crisis hitting both the local financial and automotive industries, it has paid close attention to signs that the U.S. is on the verge of a rebound.
Under the program, more than 30,000 NJFCU members can buy cars, eat at restaurants or buy clothes, and receive exclusive discounts at participating businesses. Also, participating businesses can insert coupons in credit union statements, and advertise discounts and offers in NJFCU branches or on its website. In return, the credit union's members obtain exclusive discounts offered by NJ Preferred businesses.
The idea came from James Giffin, NJFCU vice president of sales and marketing. He is now one of many members of the $166 million asset, Totowa, N.J.-based credit union taking advantage of good deals in the area, NJFCU said.
Invest in America adds Allied Van Lines
LIVONIA, Mich. (9/8/09)--The Invest in America program, which offers credit union members discounts on select vehicles at select automakers, now includes Allied Van Lines and its agent Carey Moving and Storage.
Last week, Invest in America announced that it had partnered with Thor Industries, a recreational vehicle manufacturer. Invest in America offers discounts on vehicles from General Motors and Chrysler. Ford Motor Co. also is undergoing a pilot with the program.
The Allied discounts include a minimum 60% off interstate moves and savings on intrastate full-service moves and storage. Credit unions also can take advantage of enhanced transit times, expedited claims settlements, and complementary pairs and sets valuation protection--which means that if a piece of a furniture set is broken, Allied will replace the whole set, said CUcorp.
"We hope that Allied's credit union member discounts will make things easier for the many families who may need to relocate in this tough economy," said Bill Lyon, Allied vice president and general manager.
David Adams, CEO of CUcorp, an arm of the Michigan Credit Union League that facilitates the Invest in America program, said the partnership will give credit union members "access to moving services that are the equivalent of flying first class."
Iowa CUs benefit from serving Hispanics
DES MOINES, Iowa (9/8/09)--Jose Francisco Batres and Martha Alarcon moved to the U.S. from the Mexican state of Veracruz six years ago. They put in 14-hour days at a Des Moines restaurant. They also became active members of Village CU, which serves anyone working and living in Polk and surrounding counties.
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| Village CU members Jose Francisco Batres, center, and Martha Alarcon, right, are saving up for a restaurant and to pay for the education of their daughter, Nayeli, left. |
The couple joined VCU to send money home to Mexico using World Council of Credit Unions' (WOCCU) international remittance program, IRnet, a service offered through credit unions by the for-profit WOCCU Services Group.
The credit union's fees were lower and the service friendlier than at the large commercial bank the couple previously patronized. Eventually Batres and Alarcon opened a savings account so they could save enough money to educate their daughter Nayeli and one day open their own restaurant.
The pair also joined VCU's Hispanic Advisory Group to help the credit union increase its membership penetration deeper into Des Moines' growing Hispanic community. VCU quickly became one more Iowa credit union to see the value in providing services to this rapidly growing demographic.
"The Iowa Credit Union League (ICUL) believes credit unions have a huge opportunity to help solve the current economic crisis by serving the underserved Hispanic market," said Patrick Jury, league president/CEO. "Hispanics demonstrate a high work force participation rate, increasing household income, collective purchasing power and booming entrepreneurship, all elements that will help credit unions drive membership, portfolio and asset growth."
ICUL in 2006 formed Coopera Consulting to help the state's credit unions better serve Iowa's Hispanic market, Jury said. Coopera's success has led to additional work with credit unions or credit union systems in Louisiana, Nebraska, New York and Oregon, and most recently, with Credit Union National Association to develop a credit union strategy to serve Hispanics nationwide.
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| Discussing the advantages of serving Hispanic members are, from left, Patrick Jury, Iowa Credit Union League president/CEO; Brian Branch, World Council of Credit Unions executive vice president/chief operations officer; and Murray Williams, Iowa league chief operations officer. (Photos provided by the World Council of Credit Unions |
"The work that Coopera has done with Iowa's credit unions has helped them reach out effectively and serve these communities. Across the U.S., we have seen Coopera's positive impact on credit unions seeking to improve their services to Hispanics," said Brian Branch, WOCCU executive vice president/chief operations officer.
"Success is determined by how well credit unions understand and adjust to Hispanic cultural elements that contribute to their member loyalty. Coopera is a great resource for serving Hispanics and providing cultural sensitivity that can result in a groundswell of new member applications," said Branch.
Like VCU, Des Moines Metro CU (DMMCU) has benefited from serving the city's Hispanics. It had been losing members as the city's limits expanded westward. After a demographic analysis, DMMCU discovered a large population of working class Hispanics and Sudanese in the downtown neighborhoods near the credit union. The groups were not being served.
The credit union reformulated its marketing mix to include Spanish radio stations and publications. It also offered credit-building loans starting at $500 to help new immigrants establish credit and gain a foothold in the local economy.
Membership grew, and the credit union found itself in nontraditional services, including sending remittances through WOCCU's IRnet. Credit union staff even helped one couple sort out purchase problems with a local auto dealership as part of their auto loan application and another member cope with identity theft.
The extra effort has been worthwhile, said Traci Stiles, DMMCU's business development manager, because news of the credit union's services spread rapidly by word-of-mouth through the Hispanic community, resulting in an influx of members.
"This is a market segment that is very loyal and a pleasure to serve," Stiles added.
90% of U.S. currency tainted by cocaine
DARTMOUTH, Mass. (9/8/09)--Nine out of 10 pieces of U.S. currency contain traces of cocaine, according to a new study by the American Chemical Society conducted at the University of Massachusetts-Dartmouth.
Even bills not involved in drug deals can become contaminated during the automated bill counting process in financial institutions. The drug--a fine powder--adheres to the green ink on the bills--mostly $5, $10s, $20s and $50s--and spreads easily, according to the study.
Scientists studied banknotes from nearly three dozen cities in five countries--the U.S., Canada, Brazil, Japan and China. The bills from the U.S. and Canada saw between 85% and 90% contamination. A similar study two years ago found the U.S. contamination rate at 67%. China and Japan had the cleanest bills, with 20% and 12% contamination, respectively.
Banknotes from Washington, D.C., had the most contamination--95% had traces of the drug. Other cities with larger amounts of contaminated bills included Detroit, Boston, Baltimore, Miami, Orlando and Los Angeles.
The amounts of cocaine are not enough to cause any health or drug-testing concerns, researchers said.
Deputies help Florida tellers prepare for heists
TAMPA, Fla. (9/8/09)--Sheriffs' deputies in Pasco County, Fla., formed a coalition to help prepare tellers at credit unions and other financial institutions in the area to deal with attempted robberies.
The Financial Institution Security Coalition of Pasco County staged a robbery Wednesday at Suncoast Schools FCU in Tampa, Fla., to show about 40 area financial-institution employees how to respond to armed robbers who wear disguises, wave weapons and yell out demands (Tampa Tribune Sept. 4).
Since the coalition's inception 18 months ago, the sheriffs' major crimes division has regularly met with area financial institutions, coalition spokesman Kevin Doll told the newspaper.
"We prepare them about what to look out for," Doll told the paper. "When it happens, a lot of times [the teller] is in shock about being robbed, so when [law enforcement] asks them questions later, they don't know what to tell you. We've had suspects go from white to black, male to female. Of course, some of that is due to the disguises [robbers] wear."
There are three basic types of financial-institution robbers, Sheriff's Sgt. Jim Sessa told the paper. Those who wear disguises, those who use weapons and "the note passer"--which is the most common in the Pasco area, he added.
Employees who are taught a procedure and told what to look for in a robbery situation will have more confidence and be able to give authorities more factual and useful information, Sessa told the paper.
Technological advances and working with the Federal Bureau of Investigation have helped the sheriff's office solve more financial-institution robberies, he added.
Lockheed, L.A. Police collect contributions for fire victims
BURBANK, Calif. (9/8/09)--Lockheed FCU announced that its branches in Southern California will accept contributions to help the Fire Family Foundation until Friday. The collection will help families of two firefighters who were killed Sunday while fighting wildfires in California.
L.A. Police FCU, Los Angeles, is also accepting contributions to the fund.
The firefighters are Arnaldo Quinones, 35, and Tedmund Hall, 47. Lockheed will give $1,000 to the fund. Members can donate money at any of the credit union's 10 branches.
The Fire Family Foundation (FFF) announced Friday that funds are being made available to assist the victims of the fires. "When you have lost everything, assistance in any amount helps the victims get back on their feet. Firefighters support our communities every day, and now is the time to support them and the victims who have lost their homes and belongings," said FFF Board Member Pat Engel.
On Friday, Bloomberg News reported that the Los Angeles County sheriffs were seeking a suspected arsonist behind the wildfire. The "Station Fire" has burned an area the size of Chicago in the foothills and canyons north of Los Angeles. Besides killing two firefighters, the blaze has destroyed 96 buildings. As of Friday, the fire was about 42% contained.
Teacher, 13, wins Landmark’s Biz Kid$ contest
NEW BERLIN, Wis. (9/8/09)--A thirteen-year-old teacher has been named the grand prize winner in Landmark CU's Biz Kid$ Essay Contest for young entrepreneurs age 6-14.
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| Megan Baker, 13, was the recipient of a $500 grand prize for Landmark CU's Biz Kid$ essay contest. From left are Ron Kase, Landmark CU president; Maureen Bradley, Milwaukee Public TV Director; and Baker. (Photo provided by Landmark CU) |
Megan Baker received a grand prize of $500 from the New Berlin, Wis.-based credit union. Baker wrote about teaching kindergarten readiness classes and other subjects at her Jump Ahead Summer Preschool. She earns about $80 a week.
Four runners-up who received $100 are:
- Emma Landowski, 14, Kewaksum, who sells handmade scarves and bags;
- Dillon Muth, 14, Palmyra, who sells natural meats;
- Emma Lowe, 8, Grafton, who sells soap and air fresheners; and
- Bethany Buikema, 11, Elkhorn, who sells decorated flip-flops.
Three honorable mentions were given to:
- Gloria Grzybowski, 11, Brookfield, who runs a jewelry-making business;
- Morgan Laufer, 12, Watertown, for her Scent Sachet business; and
- Michael Misorski, Hales Corners, for his MSJ Lawn Services.
The entries were judged on success of the youth's business, creativity, originality, and the organization and legibility of submitted materials, the credit union said.
Landmark has more than $1.4 billion in assets. The credit union is also a sponsor of the Emmy-awarded television series, BizKid$.
CU System briefs
- TACOMA, Wash. (9/8/09)--Tacoma-based Sound CU and MilePost CU announced Wednesday that MilePost has merged into Sound to allow "new opportunities for growth" and to "enhance the range of branch locations and services available" to members. The merger was completed Aug. 31. Sound CU is now a $477 million asset credit union with 47,000 members served by 12 branches in Pierce, Thurston and King counties (The News Tribune Sept. 3) ...
- Meridian, Miss. (9/8/09)--Police were looking for a man with the letters "D.A." tattooed on his upper right arm after he was videotaped Aug. 24 staking out an ATM at Meridian Mutual FCU and attacking it with a crowbar. He left empty-handed. A sign on the machine warns ATM users that their actions are being taped (Associated Press Newswires Sept. 3) ...
- MERIDEN, Conn. (9/8/09)--Connecticut credit unions expect more than 350 students from seven schools to participate
in a statewide Financial Reality Fair at the State Capitol on Nov. 4, said the Credit Union League of Connecticut. In 2009, credit unions working cooperatively focused on improving youth financial literacy through the fairs offered to high schools. The students "live on their own" on hypothetical but realistic budgets based on their selected occupation and make choices in lifestyle categories such as housing, transportation and recreation. "I can't think of a better way to involve our youth in learning to understand and manage their finances than putting them through such a practical lifestyle exercise," said league President/CEO Tony Emerson. Legislators and other government officials will observe, and a representative of the National Credit Union Foundation REAL Solutions program will attend. In the photo, students discuss lifestyle choices at a booth during a recent fair. (Photo provided by the Credit Union League of Connecticut) ...
Click for larger view - DULUTH, Ga. (9/8/09)--More than 250 people, representing 17 credit unions, raised $70,000 for Children's Miracle Network at the Greater Atlanta Credit Union Chapter's seventh annual Bowl-a-Thon in Decatur, Ga. The event was orchestrated by a committee of credit union employees and supported by 24 sponsors. The funds will benefit the Asthma Center at Children's Healthcare of Atlanta. Nationwide, credit unions have raised more than $63 million since 1996 through the Credit Unions for Kids program. In the Atlanta area, credit unions have contributed more than $900,000 for Children's Healthcare of Atlanta ...
- LOUISVILLE, Ky. (9/8/09)--Robert "Abe" Lincoln, 78, of Summerfield, Fla., died Aug. 27. He was former CEO of L&N FCU and Autotruck FCU in Louisville, Ky., before moving to Gainesville, Fla., to become president of Florida CU. During his credit union career, he was author of an international newsletter, "A Point of Order." He is survived by his wife, two children, and a stepgrandson. Funeral services are Sept. 25 at the Florida National Cemetery (The Courier-Journal Sept. 3) ...
Market News
MADISON, Wis. (9/8/09)
- The U.S. unemployment rate hit a 26-year high of 9.7% in August, according to a Labor Department report issued Friday. The good news is that the labor market is slowly improving as the pace of job losses dropped to a one-year low last month, analysts said. Employers cut 216,000 jobs--the lowest amount since August 2008. Analysts had forecast nonfarm jobs to decline by 225,000 and the unemployment rate to increase to 9.5%. Average hourly earnings rose by 0.3%--in line with the July increase, analysts said. Revised job losses for June and July indicate there were 49,000 more job losses than previously reported. Many analysts concur that the job market and economy are improving, but their recoveries will be slow (The New York Times and Moody's Economy.com Sept. 4) ...
- The Economic Cycle Research Institute's U.S. Future Inflation Gauge (FIG) rose to 89.6 in August from 84.6 the previous month. The smooth annualized growth rate increased to 6.5% from -8.8%. Although it remains low by historical standards, the U.S. FIG has recorded five consecutive monthly gains, analysts said. The gauge could be beginning to indicate some nascent inflation pressures coming--but well in the future, they added (Moody's Economy.com Sept. 4) ...
- The International Monetary Fund (IMF) has upwardly revised its world gross domestic product forecast for 2009 and 2010 for major industrialized economies and worldwide, according to a document obtained Friday by Reuters. In 2009, the world economy will contract 1.3%--slightly less than the IMF's earlier forecast of a 1.4% dip. It then will expand 2.9% in 2010--an upward revision from the 2.5% the IMF forecast in April. However, the IMF downgraded its 2009 outlook for the U.S. and Great Britain, forecasting a 2.9% U.S. contraction and a 4.5% downturn for Great Britain (The New York Times Sept. 4) ...
News of the Competition
MADISON, Wis. (9/8/09)
- Direct borrowing by U.S. banks from the Federal Reserve's discount window increased for the week ended Sept. 2, according to Fed data released Thursday. Overall bank borrowings averaged $109.22 billion per day, compared with an average $105.99 billion per day the week before. The Fed's balance sheet--which is a broad measure of the central bank's lending activity to the financial system--increased to $2.069 trillion Sept. 2 from $2.052 trillion Aug. 26. Overall primary discount window borrowing in the latest week averaged $32.66 billion per day, compared with $29.98 billion the previous week (Reuters Sept.3) ...
- The collapse of Capmark Financial Group Inc. may be a sign of a new upwelling of real estate losses for banks that could propel the number of bank failures this year to more than 100, analysts said. The failure of Capmark--one of the biggest U.S. real estate lenders according to rankings by Moody's Investors Service--was related to business property. On Sept. 2, the Horsham, Pa.-based company posted a quarterly loss of $1.6 billion and said it could go bankrupt. As the default rate more than doubled on commercial mortgages held by U.S. banks, Capmark experienced difficulties, analysts said (Bloomberg.com Sept. 4) ...
- After their stocks more than tripled in August, mortgage finance companies Fannie Mae and Freddie Mac avoided being delisted from the New York Stock Exchange. Federal regulators seized the two government-sponsored enterprises (GSE) a year ago. Shares of Fannie and Freddie increased last week to above $2--their highest levels since the government placed the GSEs into conservatorship in September 2008 because of escalating mortgage delinquencies. In August, Fannie Mae's share value was up 232%, while Freddie Mac jumped 269%. However, the rally was deemed unjustified by FBR Capital's Paul Miller, who said there is no remaining fundamental value in the GSEs. He added that the leap in value was due to short sellers and investor speculation regarding reverse stock splits (Bloomberg.com Sept. 4) ...
Open Solutions launches Veri-Fast to verify IDs
GLASTONBURY, Conn. (9/8/09)--Open Solutions announced that Veri-Fast, a solution designed to quickly and securely identify accountholders at a teller station to avoid fraud, is now available.
Open Solutions is a provider of integrated enabling technologies for financial services providers, including credit unions.
Veri-Fast uses two-factor authentication to identify an accountholder at the teller line. When a member swipes an ATM/debit card and enters a personal identification number, the software retrieves the relationship profile. The profiles aim to prevent fraud.
"Each year, fraud becomes more prevalent and results in significant losses," said Dave Mitchell, Open Solutions senior vice president and chief marketing officer.
About 20% to 35% of the $55 billion in operational losses incurred by financial institutions is due to fraud, according to a TowerGroup report in October 2008.
Veri-Fast is available to financial institutions that run Open Solutions' The Complete Credit Union Solution. Veri-Fast also can be integrated with other core platforms in demand.
Products and Services brief
- NORTH CANTON, Ohio (9/8/09)--ATM manufacturer Diebold visited the New York Stock Exchange to celebrate the company's 150th anniversary. To honor the occasion, Diebold President/CEO Thomas W. Swidarski rang the opening bell. He was accompanied by top-performing sales and service employees in the New York region. Diebold is headquartered in North Canton, Ohio ...
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