Banking Wire articles from April 2006

Banking Wire archives from April 2006

Visa Recall Could Have Huge Costs.
April 3, 2006... SAN FRANCISCO -- Visa USA's request to recall the holographic magnetic stripe cards will cause a wave of costs throughout the credit card industry, even though the massive card association is promising to absorb at least some portion of...

CUNA Fills Out Lobbying Team: Capital Hill Vets Magill, Sagar Hired.
April 3, 2006... WASHINGTON -- CUNA continued the remake of the credit union lobby last week by hiring two political operatives-one of them an insider on the tax- writing House Ways and Means Committee. John Magill, who will be CUNA's new top lobbyist, is...

Best Things In IT Are Free: IT Execs Tout Inexpensive Fixes.
April 3, 2006... WEST JORDAN, Utah. -- Credit unions spend millions to secure member data. But sometimes, some of the best security fixes are free. Information security managers have to fill a lot of holes using expensive solutions such as multi-factor...

Group Opposing Conversion Retains Law Firm, Gathers Funds.
April 3, 2006... DEARBORN, Mich. -- The leaders of DFCU Owners United, a group opposing the proposed conversion by DFCU Financial Credit Union to a bank, said it has retained legal counsel to represent the members' interests. Margaret Blohm, spokesperson...

Feds Track Source Of Massive Cards Breach.
April 3, 2006... LEOMINISTER, Mass. -- Authorities last week discovered what they believe are the sources of the broadening breach of debit card data but were still trying to iron down the individuals responsible for what has become the biggest debit card...

On Deadline.
April 3, 2006... 'Botnet' Hackers Found FOSTER CITY, Calif.-Online security experts have discovered two large 'botnets,' or Internet robots, they say are hacking into online shopping accounts and stealing credit card numbers, account information and...

Provocative BetterThanBanks.org Stresses Convenience.
April 3, 2006... BOULDER, Colo. -- University of Colorado FCU has rolled out a website that's bound to raise a few hackles with bankers: betterthanbanks.org. The site lists 17 reasons why a consumer is better off doing business with the $700-million...

Worth Noting.
April 3, 2006... CMBDC Names Exec Committee MADISON, Wis.-The CUNA Marketing & Business Development Council has named its exec committee. Mike Weber, VP- marketing/PR for Dupaco Community CU in Dubuque, Iowa, is chairman; Anne Upson-Legg, VP- marketing for...

2 Cos. Worth Praising, 1 CU Turning Point Worth Noting.
April 3, 2006... Last week the CUNA Marketing and Business Development Council had two excellent keynoters as part of its annual meeting, San Diego-based Dr. Kevin Freiberg and Quincy, Mass.-based John Graham. Both were speaking to the trendy business culture...

'Losing Our Way' DE Program Aims To Reignite The CU Spark.
April 3, 2006... SALT LAKE CITY -- The National Credit Union Foundation has created a "Future of Development Education Committee" to examine new ways to revitalize and expand the program. As reported in The Credit Union Journal March 20, the Development...

A Big Picture Approach Needed For System Review Strategy.
April 4, 2006... Like other financial institutions and corporate entities, credit unions today are facing unprecedented challenges in managing and protecting their critical infrastructure. Security concerns, complex and disparate technology and stringent,...

Reduce ATM Fraud By Getting Members To Do Their Part.
April 4, 2006... Credit unions and banks have worked hard at making it easier to transact business. Along with all the convenience however, come additional dangers. Thankfully, if members are reminded to take a few simple precautions, it can eliminate nearly...

Product & Service.
April 4, 2006... SuperTrain Workshops Are Set MADISON-CUNA Mutual has released the schedule for its 2006 IRA "Supertrain" workshops. The workshops will be held: June 5-8, Orlando, Fla., Doubletree Hotel; July 17-20, San Diego, Hilton Mission Valley; Aug....

Cheney Outlines Plans As He Succeeds Chatfield In Calif.
April 4, 2006... MONTEREY, Calif. -- The first two weeks as president and CEO of the California and Nevada Credit Union Leagues has been a whirlwind for Bill Cheney. Not only is the job one of the most watched and influential in the CU movement, Cheney is...

Rochdale Hosts First Focus Group.
April 4, 2006... WASHINGTON -- The two principals behind the Rochdale Group, which recently acquired consulting firm Counter Intelligence Associates from MembersAmerica Credit Union, where it had been a CUSO, hosted a focus group of CEOs during CUNA's GAC to...

NACUSO Intro's New Award.
April 4, 2006... NEWPORT BEACH, Calif. -- NACUSO has introduced a new award: the 2006 CUSO Collaboration and Cooperation Award. The first recipient of the award will be named at NACUSO's Annual Conference May 15-18 at The Wynn Hotel in Las Vegas. "The new...

BECU Gets Lending Designation From SBA.
April 4, 2006... TUKWILA, Wash. -- BECU has been granted the SBA's top lending designation by securing Preferred Lender status. BECU is the first credit union in the state of Washington and one of only six other credit unions throughout the country to earn...

Product & Service.
April 4, 2006... CO-OP Chooses SilverCloud Solution PORTSMOUTH, N.H.-SilverCloud said that the CO-OP Network has chosen the company's knowledge-management solution. SilverCloud will enable the Client Service staff in the CO-OP Network's two call centers to...

Best Practices In Business Development: Jam-Packed Agenda Focuses On Attracting Members, Growing WalletShare.
April 4, 2006... MIAMI -- Looking to boost business development at your credit union? The Credit Union Journal, which for the past seven years has hosted a highly successful SEG & Business Development Conference, will include significant content, advice...

Product & Service.
April 4, 2006... CUNA Mutual Is Rated 'A' By Fitch MADISON, Wis.-A.M. Best has rated CUNA Mutual's primary insurance companies "A" (Excellent), while Fitch has rated the companies "AA-" (Very Strong). Both agencies labeled the company's rating outlook as...

Less FERVOR For SERVERS: How Desert Schools Has Slashed Costs Related To Servers.
April 5, 2006... PHOENIX -- How many servers does it take to run a credit union? For mid-size and larger CUs with multiple best-of-breed applications, it can take dozens of servers-even hundreds. But the $2.6-billion Desert Schools FCU (DSFCU) runs...

Technology News: Study: Most Consumers Do Not Trust Services Online.
April 5, 2006... CAMBRIDGE, Mass. -- Most financial services firms, on average, have failed all criteria for establishing trust with consumers during their electronic interactions, according to a new study by Forrester Research Inc. The firm conducted the...

'Bundled' Platform Gives Home Equity Loans A Kick Start.
April 5, 2006... AUSTIN, Texas -- Home equity loans moved into fast-forward after a credit union here started shopping from a "bundled" platform of ancillary services. United Heritage CU (UHCU) can now close loans as fast as state law permits, according...

High-Speed Storage Solutions Being Used For Documents.
April 5, 2006... OKLAHOMA CITY, Okla. -- Credit unions are turning to high-speed storage. Tinker FCU took the storage path-less-traveled during a conversion to the Episys data processing solution last spring, convincing Symitar to help install a high-speed...

ITems.
April 5, 2006... Ocean Comm. to Synergent WESTBROOKE, Maine-Synergent, a subsidiary of the Maine league, said that Biddeford, Maine-based Ocean Communities FCU has signed a 10-year agreement with its technology services division. In the fall of 2007, Ocean...

Encrypting Member Data: CU IT Execs, Examiners Discuss When Data Must Be Encrypted.
April 5, 2006... BREMERTON, Wash. -- Credit unions are awakening to the fact that they must encrypt member data-but it's not clear when or how the data should be secured. NCUA Rules and Regulations Part 748 mandate encryption for data in storage and...

Consumers Willing To Take Extra Steps In Name of Security.
April 5, 2006... ATLANTA -- A new study suggests consumers are willing to perform extra tasks to increase security when logging onto financial websites. They study, by Synergistics Reaserch Corp. and entitled "The Evolving Online Banking and Bill Payment...

ITems.
April 5, 2006... IA Systems Adds Clients WASHINGTON-IA Systems, a provider of lending software and services to credit unions, reported that during 2005 it signed several new billion-dollar institutions; brought 14 clients live on its loan origination...

Hello, I'M I.M.: How Tellers Are Using IM To Better Serve Members.
April 5, 2006... MOLINE, Ill. -- E-mail will fall flat as credit union employees here jump to Instant Messaging (IM), according to Scott Zahnle, vice president, Information Technology at $510-million IH Mississippi Valley CU (IHMVCU). "We think IM will...

Change To Log-In Process Overwhelms Site, Call Center.
April 5, 2006... SAN JOSE, Calif. -- Changing a website's log-in process is inconvenient for customers, but there are ways to minimize the hassle and ways to make it worse. Technology Credit Union learned that lesson the hard way recently, when it added...

ITems.
April 6, 2006... Jack Henry Selects RSA Security MONET, Mo.-Jack Henry & Associates, Inc. has selected RSA Cyota Consumer Solutions, a division of RSA Security Inc., Bedford, Mass., to provide strong authentication for online banking to its financial...

The KEY-OSK to LOANS: Alaska's CU 1 Interactive Kiosks Reflect Retail Focus.
April 6, 2006... ANCHORAGE, Alaska -- Here in the Last Frontier, Credit Union 1 is exploring some frontiers of its own. The credit union has installed motion-detecting information kiosks aimed at speeding up lending, and also to highlight the high-tech,...

ITems.
April 6, 2006... Pittsford CU Deploys FNIS PITTSFORD, N.Y.-Pittsford CU said it has signed with Fidelity National Information Systems to implement the company's MISER core processing system. Officials with the $220-million credit union said they were...

Metavante Provides Alaska USA With LOS.
April 6, 2006... WAYNE, Penn. -- Metavante Corp. reported that Alaska USA FCU has licensed its web- based Loan Origination Studio (LOS), Workshop toolkit and Loanportal, its integrated third-party services gateway. Metavante will provide Alaska USA FCU with...

Shell FCU, SECU Select Open Solutions.
April 6, 2006... GLASTONBURY, Conn. -- Two more CUs have moved to Open Solutions. The $240-million Shell FCU in Deer Park, Texas has selected OSI's The Complete Credit Union Solution to address its in-house enterprise-wide data processing needs. In addition...

CU*Answers Enhances BASE Member Processing.
April 6, 2006... GRAND RAPIDS, Mich. -- CU*Answers has released a number of enhancements to its CU*BASE Member Processing solution. The enhancements include: * Indirect/Dealer Lending enhancements: an XML lending gateway for clients to electronically...

CU Village.com Redesigns Florida League Website.
April 6, 2006... NORTHVILLE TOWNSHIP, Mich. -- CU Village.com has completed a redesign of the Florida Credit Union League's (FCUL) website at www.fcul.org. The new site features an entirely new look as well as a number of technological enhancements including...

iS3 Offers Free Phishing Protection For CUs.
April 6, 2006... BOYNTON BEACH, Fla. -- iS3, a developer of computer security software, is offering free phishing protection to credit unions through its ZILLAbar solution. The ZILLAbar is a downloadable toolbar that works with Internet Explorer, providing...

Fiserv Clients Very Satisfied With Services.
April 6, 2006... BROOKFIELD, Wis. -- Fiserv, Inc. has released the results of its 2005 Client Satisfaction Survey of credit unions served by the company's Credit Union Industry & Products Group, which includes AFTECH, CUSA Technologies, GalaxyPlus,...

RSA Security Completes Authentication Solution.
April 6, 2006... BEDFORD, Mass. -- RSA Security said it has completed phase one of its integration with Cyota and unveiled a comprehensive, layered authentication solution designed to meet the financial services sector's need for flexible, convenient...

10 Years Ago, CUNA Embarked On A 'Renewal Project' To Overhaul Its Governance. A Look Back At Why, And Where The Trade Association Stands Today.
April 7, 2006... WASHINGTON -- Ten years before there was such a thing as "Sarbanes-Oxley" the credit union system's largest trade group underwent what may be the greatest corporate restructuring effort in the movement's history: the CUNA Renewal Project. ...

Conversion Voting Packets Mailed: CU, Opponents Now Try To Win Votes For Their Side.
April 7, 2006... DEARBORN, Mich. -- Members of DFCU Financial began receiving packets from their credit union last week complete with a ballot to vote on a planned conversion to a mutual savings bank, disclosure information and opportunities to win big money...

Overwhelmingly, CUs Want No Changes To 'Underserved' Rule.
April 7, 2006... WASHINGTON -- Credit unions overwhelmingly called on NCUA last week to stand up to the bankers' challenge to the agency's underserved expansions policy and back off a proposed rule eliminating the ability of community chartered credit unions to...

CO-OP Continues To Grow As It Merges With ENCORE.
April 7, 2006... ONTARIO, Calif. -- In a move to expand its East Coast presence, The CO-OP Network agreed last week to acquire credit union-owned ENCORE, an electronic funds network for credit unions in the Washington, D.C., area. The deal is the seventh...

On Deadline.
April 7, 2006... Court Rules Against Missouri CUs On FOM JEFFERSON CITY, Mo.-In a ruling that could cause havoc among the state's biggest CUs and affect field of membership challenges across the country, a state court here ruled for the bankers and struck...

CU Hit With Patent Infringement Suit.
April 7, 2006... DALLAS -- Entrust, a digital security company headquartered here, has filed a patent infringement lawsuit against Addison Avenue FCU. Officials at the Palo Alto, Calif.-based credit union declined to comment. Chris Voice, Entrust's...

You're Fired-Or Worse! Consumers Rate FIs.
April 7, 2006... ATLANTA -- Almost half of consumers (47%) questioned in a new survey see their financial institution personified as Donald Trump, smart, savvy and successful. Second on the list was Mary Poppins (39%), followed by Ebenezer Scrooge (8%) and...

Deal of A 'Life' Time Offered.
April 7, 2006... TORRANCE, Calif. -- How would you like to take out a full page ad in a major national magazine for about half the cost? That's essentially the idea behind Market & Sales Logic's Community Outreach program. The marketing firm has inked a...

Worth Noting.
April 7, 2006... Two Promoted At Journal WEST PALM BEACH, Fla.-SourceMedia, publisher of The Credit Union Journal, has announced several promotions. Frank J. Diekmann has been named publisher, in addition to duties as editor in Chief. Lisa Freeman has been...

Speak X & Y Before They're Ex-Members & U Wonder Y.
April 7, 2006... Would you run the ad that appears below? If not, chances are you're feeling fat, not phat, you remember when music videos were on Music TeleVision, and when you read "CUL8R," you actually think it may be a credit union name change, not a way...

Why CUs Must Embrace SOHO Business Marketplace.
April 10, 2006... As you mine your member base looking for ways to increase revenue while bringing greater value to the people you serve, it's easy to overlook an important segment-the SOHO, or small office-home office business. According to one study...

Product & Service.
April 10, 2006... ProCon Creates Governance Model MADISON, Wis.-The ProCon Group, a management consulting firm specializing in increasing organizational effectiveness in the credit union industry, has created a board of directors governance model. The model...

Loan Participations Offer 'Golden Egg' Opportunities.
April 10, 2006... Is your credit union in a challenging liquidity situation? The economy, and its many intricacies, can be challenging for even the most seasoned credit union portfolio manager. Because of its tumultuousness, the stage is set for many of us...

Product & Service.
April 10, 2006... Encore Teams Up With ETBS FALLS CHURCH, Va.-Encore Electronic Services Cooperative, Inc. has entered into an alliance with Electronic Transfer Business Solutions, Inc (ETBS). Credit union-owned Encore said the alliance will bring its...

Two, Four, Six, Eight, Rep. Does Not Appreciate.
April 10, 2006... WASHINGTON -- NCUA's new congressional staff is getting a workout right away. U.S. Rep. Bill Thomas of California, the outgoing chairman of the tax-writing Ways and Means Committee, turned his ire on the credit union regulator again after...

NCUA Rules On FCU Board Seat Reductions.
April 10, 2006... ALEXANDRIA, Va. -- Directors of a federal CU may reduce the number of board seats but must obtain a two-thirds vote to do so, according to NCUA. A change in the number of board seats amount to an amendment to the Federal CU bylaws, and...

People.
April 10, 2006... The Colorado and Wyoming Credit Union Leagues, Arvada, Colo., announced that Ron Rakowsky was elected to the Greenwood Village City Council. Insight Financial CU, Orlando, Fla., promoted Melody Hayes to Apopka branch manager and Brandi...

Michigan League, State Reps Want NCUA To Intervene.
April 10, 2006... EAST LANSING, Mich. -- Michigan Credit Union League President Dave Adams last week said he and other credit union and legislative officials are asking the National Credit Union Administration to "intervene" in DFCU Financial's conversion...

League CEO's View On DFCU's Disclosures.
April 10, 2006... "The disclosures are actually pretty good because they are required by the NCUA," said Dave Adams, CEO of the Michigan league, pointing to the specifics regarding the loss of tax exemption and opportunities for stock awards and stock...

CUTS! (Credit Unions Take Stock): Author, Analyst Challenges CUs To Demonstrate 'Guts'.
April 10, 2006... ORLANDO -- Are you the kind of leader at your credit union who has the guts to create a place where fully impassioned people show up every day? That was just one of many tough questions posed by an analyst who has studied category-leading...

Giving CU Executives Their CUES for Professional Development: The Credit Union Executives Society's Fred Johnson Talks About Why Education Has Become Imperative For Today's CU Leaders.
April 11, 2006... MADISON, Wis. -- To put it "nicely,"-because that's the kind of guy he is-Fred Johnson said, he initially saw the Credit Union Executive Society as a membership organization that was lacking educational content and "woefully behind" technology....

One Milwaukee CU Finds A 'Prime' Reason To Change.
April 11, 2006... MILWAUKEE, Wis. -- The former Milwaukee Metropolitan Credit Union has changed its name to Prime Financial to help expand its reach to potential members. The CU with 34,000 members and $164 million in assets said the previous name-in fact,...

Other Credit Union FOM & Name Changes.
April 11, 2006... HOLLYWOOD, Calif.-Musicians' Credit Union and Interguild FCU here have merged to form the $80-million Musicians Interguild Credit Union. "Membership will be available to anybody who lives, works or worships in the Hollywood area," said...

Product & Service.
April 11, 2006... ByDesign, Calif. League To Educate LOS ANGELES-ByDesign Financial Solutions and the California league have entered into an agreement to work together to promote financial literacy to CCUL member credit unions in California and Nevada. The...

The CU Journal Daily.
April 11, 2006... Wescom Creates Own Authentication PASADENA, Calif.-Wescom CU has launched its own two-factor authentication system that it developed in-house. The system was developed by Wescom Resources Group, the CU's CUSO. Introduction comes a week...

How Australia's CU CEOs View Themselves.
April 11, 2006... MELBOURNE, Australia -- A marketing research firm here has compiled findings from the first of what is to be a quarterly survey of this country's credit union CEOs. The survey was conducted by Derham Marketing Research (The Credit Union...

Product & Service.
April 11, 2006... New Site Offers Biz Continuity HAGERSTOWN, Md.-Ongoing Operations, LLC, a CUSO offering business continuity services and chartered by seven DC-area CUs, has cut the ribbon on a 32,000 square-foot facility here. The CUSO was formed in March...

Where The Risk Lies In Business Lending.
April 11, 2006... MONTEREY, Calif. -- Member business services is an area with great potential for credit unions-both positive and negative- according to one expert. Doug Benzine, VP-research and consulting with CUNA, told attendees of a breakout session...

Economic Expansion Continues But Is Starting To Weaken, Hampel Says.
April 11, 2006... MONTEREY, Calif. -- Credit unions should expect strong economic growth in the first quarter of 2006 and two more short-term interest rate increases from the Federal Reserve Board, according to one economist. Bill Hampel, chief economist...

Mergers Hurting Low-Income Areas.
April 11, 2006... BERKLEY, Calif. -- A new study suggests that bank mergers generate negative economic effects in poor neighborhoods, resulting in an increase in property crime. The study, published by "The Journal of Finance," found that neighborhoods...

Don't Let Your CU Become Seniors' Club.
April 12, 2006... MADISON, Wis. -- Either attract younger members now, or brace for a credit union that is an investment and savings club for senior citizens. That message is at the heart of a new report that plainly states the inability to attract younger...

Hispanics Shunning Financial Institutions.
April 12, 2006... ATLANTA -- A significant number of Hispanic consumers cashing checks in bank branches do not have a relationship with a bank, savings institution, or credit union, according to a recent research study by Synergistics Research Corp. While...

Educated Workers An Economic Requirement.
April 12, 2006... MADISON, Wis. -- A growing economy is only going to place greater emphasis on the need for workers with higher education, notes a new survey from CUNA that suggests incentive plans are an effective way of recruiting and retaining such talent....

Wescom Goes Old School With Truck.
April 12, 2006... PASADENA, Calif. -- Wescom Credit Union is using a restored 1934 Ford stake bed pickup truck as its new marketing vehicle. The credit union was founded that same year as Telephone Employees Credit Union. In addition to the truck, it has...

Arnold Named Marketer of the Year.
April 12, 2006... ORLANDO, Fla. -- Mark Arnold, Senior VP with Neighborhood Credit Union in Dallas, was named Marketing Professional of the Year by the CUNA Marketing and Business Development Council. The award was presented during the group's annual meeting...

Low Down Payment Plan Is Added.
April 12, 2006... RALEIGH, N.C. -- The local branch here of Latino Community Credit Union (LCCU) has added a first mortgage program it says will make it easier for low-income borrowers to buy a home. "Our members generally hold lower-paying jobs that don't allow...

Tips, Advice On SEGs, Business Development Shared.
April 12, 2006... ORLANDO, Fla. -- SEGs still have legs. Working with select employee groups remains the primary focus of many executives within credit unions, and a panel discussion of individuals with those job responsibilities was part of the CUNA...

Card Services Division Now Credit Union Card Center.
April 12, 2006... INDIANAPOLIS -- The Card Services division of Servicecorp, the subsidiary of the Indiana league, has changed its name to Credit Union Card Center. Servicecorp COO Diana Arnold said the name change emphasizes that it offers services outside of...

Southeast CUREN Reaches Out To New Members.
April 12, 2006... MONTGOMERY, Ala. -- The Southeast Credit Union Real Estate Network Group is seeking new members in Alabama, Georgia, and Tennessee among CUs and CUSOs, mortgage insurance companies, secondary market investors and technology companies working in...

Product & Service.
April 12, 2006... Floyd Unveils Exec Search Service BAYTOWN, Texas-John M. Floyd & Associates, Inc., which has primarily been known for its overdraft protection product, is introducing an executive search service. "In effect, we have assembled our top...

Don't Let Your CU Become Seniors' Club.
April 13, 2006... MADISON, Wis. -- Either attract younger members now, or brace for a credit union that is an investment and savings club for senior citizens. That message is at the heart of a new report that plainly states the inability to attract...

Hispanics Shunning Financial Institutions.
April 13, 2006... ATLANTA -- A significant number of Hispanic consumers cashing checks in bank branches do not have a relationship with a bank, savings institution, or credit union, according to a recent research study by Synergistics Research Corp. While...

Educated Workers An Economic Requirement.
April 13, 2006... MADISON, Wis. -- A growing economy is only going to place greater emphasis on the need for workers with higher education, notes a new survey from CUNA that suggests incentive plans are an effective way of recruiting and retaining such talent....

Wescom Goes Old School With Truck.
April 13, 2006... PASADENA, Calif. -- Wescom Credit Union is using a restored 1934 Ford stake bed pickup truck as its new marketing vehicle. The credit union was founded that same year as Telephone Employees Credit Union. In addition to the truck, it has...