Banking Wire articles from November 2006

Banking Wire archives from November 2006

Cyphermint Launches PayCash Mobile.
November 1, 2006... MARLBOROUGH, Mass. -- Cyphermint Inc. announced the launch of its PayCash Mobile which will allow customers to use their cell phones as a payment device. The service will allow any Internet enabled phone to act as a mechanism for payment...

Pay For Pizza By Cell Phone.
November 1, 2006... MARLBOROUGH, Mass. -- Cyphermint, Inc., a provider of electronic payment services, has introduced the first cell phone payment for home delivered pizza. The company, which is developing its own pay-by-cell phone solution, teamed with...

'Football' CD A Good Bet At 5.50%.
November 1, 2006... LAS VEGAS -- Community One FCU is offering an 18-month "football certificate" at 5.50%, and more if a bet on your favorite team pays off. If your team makes it to the play-offs, the credit union will add 0.25% to the annual percentage...

Manager Manipulates The Books.
November 1, 2006... CUMBERLAND, Md. -- In an unusual indictment, the former assistant manager of City, County and State of Allegany County FCU was charged by a federal grand jury of manipulating the books of the credit union-not to enrich himself-but to build...

Wrong Brother Jailed For Robbery.
November 1, 2006... SAN ANTONIO, Texas -- A 19-year-old suspect in the July 2005 robbery at Southside CU languished for eight months in Bexar County Jail while the young suspect knew the real robber was his older brother who could pass for his double. The...

Teller Capture Captures Big Efficiencies: MacDill FCU Projecting $1M In Annual Savings With Teller-Level Check Capture.
November 1, 2006... TAMPA, Fla. -- MacDill FCU has raised the ante on Check 21. MacDill is the first credit union to instantly present check deposits to the clearinghouse as the member waits at the teller counter. Tellers scan an electronic image of the...

Technology News: Pacific Service Launches Educational Podcast.
November 1, 2006... WALNUT CREEK, Calif. -- Pacific Service Credit Union has launched the first in a series of educational podcasts on its web- site. The first podcast addresses the "ABCs of Good Credit" and is geared toward educating young adults. The...

How Small CUs Are Sitting Ducks: Lack of Investment, Resources Could Make Small CUs Target For Fraud #by#By Kevin Jepson, Technology Correspondent.
November 1, 2006... LANSING, Mich. -- Small credit unions are sitting ducks for network hackers, according to one executive at a $56-million CU here. "There's not a small credit union out there that's not in trouble in regards to the Internet," asserted...

ITems.
November 1, 2006... FNEFCU Selects Symitar SAN DIEGO-Symitar announced that Connecticut-based First New England Federal Credit Union has selected the Episys platform to provide enterprise-wide automation. This credit union, which has more than $56 million...

Comodo Unveils SiteMon.
November 1, 2006... JERSEY CITY, N.J. -- Comodo, a global Certification Authority, today announced the immediate availability of SiteMon, a website continuity monitoring service. SiteMon automatically checks corporate, e-commerce and enterprise websites...

USERS Hosts EdCon 2006.
November 2, 2006... ORLANDO, Fla. -- USERS, Inc., a unit of Fiserv Inc., hosted more than 500 attendees at EdCon 2006 last week, the company's 23rd annual educational conference. Built around a theme of "The Power of Trusted Partners," the meeting focused on...

OSI, Celero Reach Agreement.
November 2, 2006... GLASTONBURY, Conn. -- Open Solutions Inc. announced that its Canadian subsidiary, Open Solutions Canada, and Celero Solutions have reached an agreement on a comprehensive suite of Open Solutions' strategic products to the Calgary,...

Share One Chosen.
November 2, 2006... MEMPHIS, Tenn. -- Share One, Inc., a technology CUSO, announced the recent addition of three new credit union clients. City Employees, Macon, Ga., with $3 million in assets and 1,800 members; Vantage Financial, Brook Park, Ohio, with $65...

Q2 Selects TriCipher.
November 2, 2006... SAN MATEO, Calif. -- TriCipher, Inc. announced that Q2 Software, Inc., a provider of software and services for credit unions, has selected the TriCipher Armored Credential System (TACS) solution to deploy to its customer base. A key...

Two Years Later, How Some Have Cut The Thorns From Check 21.
November 2, 2006... KANSAS CITY, Mo. -- Check 21 technology is paying off for one credit union here, even as the industry struggles against a "painful" trend towards duplicate item posting. "We can now turn our attention to serving members at their...

Using Security Upgrades As A Selling Point, Not Just A Point Of Compliance.
November 2, 2006... HARRISBURG, Penn. -- Credit unions are selling safety to their online members by using new multi-factor authentication tools to promote Internet banking. Although the Federal Financial Institutions Examination Council and NCUA are...

How One CU Gets Two Servers For The Price Of One Using Virtualization.
November 2, 2006... MONTPELIER, Vt. -- When Vermont State Employees CU needed more server space, it went out on the virtual edge, literally. "In comparison to our credit union peers, we're a very early adopter of virtualization technology in a production...

Panel Offers Blueprint For Building Political Advocacy From Grassroots Up.
November 2, 2006... LAS VEGAS -- Gaining a voice in politics takes more than simply opening your mouth. Three veterans of credit union political activism offered their suggestions on how to build that voice. The three keys to successful political advocacy...

Dollar: Risk-Based Capital, Reg Reform Critical To Stave Off Conversions.
November 2, 2006... LAS VEGAS -- Banks want credit unions to be prohibited from growing and competing, Dennis Dollar says. And unless CUs see several significant changes, including their capital system and the way they are regulated, the future is bleak, he warns....

Hyland Reports 'Positive' Dialogue With Treasury On Risk-Based Capital.
November 2, 2006... LAS VEGAS -- Creating a risk-based capital system is a "necessity," NCUA board member Gigi Hyland said recently. "The question is timing. The Treasury Department must sign off, but conversations between NCUA and Treasury have been...

CU-Owned Insurance Agencies Bring Mixed Results.
November 3, 2006... DALLAS -- Despite banks and credit unions having invested in buying, building or starting property and casualty insurance agencies, those initiatives have generated mixed results, according to a study conducted by The Insurance Agency...

Product & Service.
November 3, 2006... AppOne Teams With AmeriCredit BATON ROUGE, La.-Financial technology provider AppOne recently formed a partnership with AmeriCredit, a leading automobile lending source throughout the nation. AppOne's national dealer network can receive...

Ad Campaign Is Putting Spotlight On Banks' Profits.
November 3, 2006... SACRAMENTO, Calif. -- If the cliche fits, wear it. The California and Nevada Credit Union Leagues are well into the second year of a public advocacy campaign featuring radio and newspaper ads. In recent months, the two leagues have moved...

Product & Service.
November 3, 2006... CUSO Holds Disaster Test HAGERSTOWN, Md.-Business continuity credit union service organization Ongoing Operations, LLC, a CUSO formed by Washington D.C. area credit unions, held a disaster test in which Northwest FCU participated. The...

Financial Services See Opportunity in HSAs.
November 3, 2006... MINNEAPOLIS -- Eighty percent of financial organizations responding to a recent Wolters Kluwer Financial Services survey said their organization currently offers Health Savings Accounts (HSAs) or plans to do so in the next year. Of the...

Consumers Confident Despite Pinch In Wallets.
November 3, 2006... COSTA MESA, Calif. -- Consumer sentiment increased 11 points in July to 85, despite a rise in gasoline prices, according to the most recent results of the Experian-Gallup Personal Credit Index. The index was compiled before the recent drop...

CUJ & Q&A: CU Specifically Aimed At Children Is Turning To A Former Educator As Its Manager, Who Is Dealing With A Whole New Learning Curve.
November 3, 2006... MADISON, Wis. -- It's only fitting that the world's only independent credit union chartered specifically for children would turn to someone who is entirely used to dealing with children day in and day out: a school teacher. STAR CU (which...

Branching Is Key To Jump-Starting Membership, Asset Growth, Expert Says.
November 3, 2006... LAS VEGAS -- Credit unions must know the Return on Investment (ROI) of every branch-and learn how to squeeze more out of every branch-if they wish to staunch the bleeding of credit union slow growth. Credit union consultant Paul Seibert...

Keeping The Military Out Of It.
November 3, 2006... SPARTANBURG, S.C. -- With some elements of the payday lending industry under fire for high-rate, high-fee loans made to members of the military, Advance America, Cash Advance Centers, Inc. said it will no longer make any payday advances to...

OpSS Announces Award Winners.
November 3, 2006... MADISON, Wis. -- Winners of the second annual Best Practice Awards, sponsored by the CUNA Operations, Sales & Service (OpSS) Council, were announced during the 9th annual OpSS Council Conference, Sept. 24-27, in San Francisco. The...

NCUA Holds The Line On Spending.
November 6, 2006... ALEXANDRIA, Va. -- NCUA said last week it expects to approve a spending plan for next year that is barely higher than this year's, meaning fees charged to federal credit unions are likely to be unchanged from this year. The proposed...

Afraid, But Not Too Afraid: Online Banking Adoption Says Members Unafraid.
November 6, 2006... EAU CLAIRE, Wis. -- Members aren't afraid of banking online. So say adoption rates at several credit unions, despite industry reports that consumers- fearful of fraud-are shying away from doing business on the web. A Consumer Reports...

BECU Offers 7.5% On Checking, Savings.
November 6, 2006... TUKWILA, Wash. -- BECU is offering 7.5% rates on the first $500 of eligible members' checking and savings accounts in a bid to attract new money, cement relationships with members, promote savings-and even save the credit union a little...

State Endorses Penn. CUs' Payday Program.
November 6, 2006... HARRISBURG, Penn. -- The Pennsylvania Treasurer's office announced a $20-million deposit last week into Mid-Atlantic Corporate FCU, which will help fund a loan- loss reserve for a new payday loan program introduced by the state's credit...

CUSO Fills Growing Need For Trust Svcs.
November 6, 2006... PHOENIX -- Credit Union Financial Network, a CUSO comprised of eight Arizona- based CUs, this month began offering its member credit unions the ability to tap a growing need for trust services. Mike Prior, CEO of Credit Union Financial...

On Deadline.
November 6, 2006... BECU Makes Promise To College Savers TUKWILA, Wash.-Boeing Employees CU became one of the first MasterCard issuers to roll-out a new college saving program that rewards members with college savings with the use of their debit cards. ...

PCUA Takes Campaign To Television.
November 6, 2006... HARRISBURG, Penn. -- After spending hundreds of thousands of dollars on annual radio and billboard ad buys, the Pennsylvania CU Association is trying its hand at television-a costlier, but it hopes more effective, means of getting the CU...

Penn. CUs See Dues Increase.
November 6, 2006... HARRISBURG, Penn. -- Member credit unions of the Pennsylvania Credit Union Association will see a dues increase for the first time in "several years" according to Michael Wishnow. He also said the increase has been affected by the shrinking...

CUJ Survey: The Importance of Conversions.
November 6, 2006... WEST PALM BEACH, Fla. -- The CU Journal's informal poll on its website found the majority of survey participants (65%) consider CU conversions to bank charter to be a "very serious" issue. Don't miss your opportunity to weigh in on the...

Worth Noting.
November 6, 2006... ACCU Returns To Full Membership SRI LANKA-The Asian Confederation of Credit Unions (ACCU) is returning to full membership in the World Council of Credit Unions Inc. (WOCCU). ACCU had moved from full membership to affiliate status in...

Move Over Pavlov, CUs Have Their Own Trained Response.
November 7, 2006... Oh, just admit it. As soon as you read these three words, "Serving the Underserved," you immediately conjure up images and a response in your mind. Just as Pavlov had his dogs, credit unions have their "serving the underserved." The dogs...

Most Hawaii CUs Safe From Quake.
November 7, 2006... HONOLULU -- Only one credit union on the Big Island of Hawaii was unable to open last Monday following a magnitude-6.6 earthquake on Sunday, according to a Hawaii Credit Union League spokeswoman. Pam Divito-Paiaina, the HCUL's vice...

Members to Vote on Banishment.
November 7, 2006... VANCOUVER, Wash. -- Members of Columbia CU will be asked to vote at a special meeting next month whether to expel all members of a dissident members group from elected positions at the $720-million credit union, which has been affected by...

Founding Father Carne Passes.
November 7, 2006... DULUTH, Ga. -- Vernon Carne, who chartered Dekalb County Teachers FCU, now known as Georgia FCU, 48 years ago, died at 87. Carne encouraged six other educators to pledge $5 each to form the credit union and served on its board and as an...

CO-OP Unveils Rewards Program.
November 7, 2006... ONTARIO, Calif. -- CO-OP Financial Services has launched a member loyalty program for all CO-OP cardholders to earn points for merchandise or travel the more they use their cards. Cardholders will accumulate points for every dollar spent...

Net Neutrality Could Mean Reduced Access, Increased Costs.
November 7, 2006... Editor's note: On Oct. 16, 2006, AT&T said it would follow the FCC's net neutrality guidelines for 30 months after the merger, if approved. A decision by the FCC was pending at press time. The so-called "net neutrality" debate, primarily...

The 5 Constituencies Of Strategic Planning.
November 7, 2006... Traditionally, strategic planning involves the board of directors and senior management. The board is entrusted with creating the organization's itinerary, and senior management with driving the bus to the destination. This process, however,...

Attention CU Story-Tellers!
November 7, 2006... WEST PALM BEACH, Fla. -- Credit unions know what their strengths are and the advantages over banks they have to offer to consumers. But they often keep it secret, even though telling that story can be a very effective strategy...

Product & Service.
November 7, 2006... CUSN Adds Credit Unions Arvada, Colorado-Credit Union Service Network (CUSN) has added three credit unions and nine shared branching locations in Colorado and Wyoming, to their network. The CUs are BCS Community Credit Union in Wheat...

CU Trade Groups Go Bowling For GOP.
November 7, 2006... ARLINGTON, Va. -- With checks destined for groups like BOWLING for our Majority PAC, or BOMP, and Together for Our Majority PAC, or TOMPAC, NAFCU pitched in last month to help support endangered members of the Republican House majority. ...

Risk Mitigation: Key to Safety: Alerts Aid Authentication: Javelin says involve users more to stop ID theft.
November 8, 2006... Cleveland-based KeyBank decided to open up communication with its online customers this year. When an account funds transfer occurs or a new payee is added to a bill pay list, Key now sends out an e-mail alert. If a PIN, password or address...

Security: Access Privileges Converge: Combining physical and network access a logical step.
November 8, 2006... Even with a mother lode invested in both lock-sure physical access and network security, an East Coast financial firm didn't account for its vulnerability to a coffee break. During a compliance audit tour of a secured testing area, an...

Talking Turkey.
November 8, 2006... I know it's a bit early, but Happy Holidays! They're a time of giving, of family, of togetherness, and no one gets tired of wishing them on one another. That's why the holiday season is such a boon for advisors - it's the one time of year when...

Florida Rule Threatens Bank Insurance Sales.
November 8, 2006... A Florida senate bill, SB 1912, could hamper banks' ability to sell insurance in that state unless regulators block its passage, according to the legal counsel for the Bank Insurance and Securities Association. SB 1912, which went into...

Lafayette Member Seeks Intervention From NCUA Intervention.
November 8, 2006... TUCSON, Ariz. -- Lafayette Federal Credit Union's attempt to convert to a mutual savings bank may have hit another snag with a letter from David H. Mandel to NCUA Region II Director Ed Dupcak, asking for the agency to intervene to prevent...

$40M Worth Of Help For Auto Workers: Michigan, State's CUs Team Up On Program.
November 8, 2006... DEARBORN, Mich. -- Gov. Jennifer Granholm joined credit union officials last week to unveil a $40-million loan program to retrain the state's besieged auto workers, hit hard by the unprecedented loss of jobs in auto and parts manufacturing....

Sharing The Wealth: PSCU-FS Plans Give-Backs Of Millions To Owners.
November 8, 2006... ST. PETERSBURG, Fla. -- PSCU Financial Services said it is enjoying its most successful year yet and plans to celebrate by paying out millions of dollars to its credit union owner, as soon as this month. The credit union processor is...

Bet On Senate Incumbent May Pay Off For CUNA.
November 8, 2006... WASHINGTON -- A big bet on Connecticut Sen. Joseph Lieberman even after the three- term incumbent was defeated in the Democratic primary in August, may pay off for CUNA, after all. With the help of independent voters and even Republicans,...

Make Way for a Tougher, Yet Productive Year: Bankers may find 2007 tricky to navigate, but "dynamic capitalism" allows for the creative bursts that make economies strong. No doubt banks will play a part.
November 8, 2006... If economist Edmund S. Phelps is fair in his assessment that the West has two economic systems-the "private ownership system" embraced by the U.S., Canada and the U.K., and the "stakeholder and social partner" driven system found in Western...

IPOs: People's Takes Final Step Toward Demutualization: Deal, at $2.6 billion, would be eighth-largest.
November 8, 2006... The long-awaited decision by People's Bank to demutualize and become a fully public company in 2007 could raise an estimated $2.6 billion that's earmarked, say analysts, for acquisitions. The S-1 document, which details the appraisal and...

Brokerage Marketing Dollars Drop.
November 10, 2006... Bank marketing budgets peaked at $10.6 billion last year, after hovering around $10.5 billion for the past two years, but investment, insurance and trust departments aren't going to see much of that, according to the American Bankers...

Banks Spur SMA Growth.
November 10, 2006... Part of the rapid growth in the separately managed accounts (SMAs) market can be attributed to the arrival of banks and trusts at the party. That market has grown 20% a year since 2003, according to the Money Management Institute. Part of...

Data Governance: Struggling with the Numbers Crunch: Banks collect large volumes of data to guide their strategies. But much of that output is too fragmented and redundant to help.
November 10, 2006... Banks compile ever more diverse sets of data to help decipher business strategy and compliance issues. But they are discovering a problem with their analytical operations: the data itself. The glut of new information gleaned from siloed...

News Makers.
November 10, 2006... TEXT MESSAGING ISN'T ONLY FOR TEENAGERS MasterCard handles more than two million calls a year from traveling cardholders looking for an ATM. Now through a text-messaging service, the payments company can send the information to users'...

Elections Pit CU Funds Vs. CU Funds.
November 10, 2006... SAN DIEGO -- In the race to replace Rep. Randy 'Duke' Cunningham, the Republican congressman sentenced to prison for bribery, CU executives in the district lined up almost unanimously in May's special election behind former Congressman Brian...

Worth Noting.
November 10, 2006... Mon-Oc Has New Name WALL, N.J.-Mon-Oc Federal Credit Union changed its name with a branch campaign seeking a new name. Now known as First Financial Federal Credit Union, financial product specials and a contest to win a new car generated a...

Beware All Ye Who Enter The Board Room Of Doom.
November 10, 2006... "Are you sure you want to enter?" It was the third time he had asked me that question, every time flashing at me the kind of ivory-teeth smile found only among those who have access to someone else's money for the expensive dental work. I...

Don't Be Good At Sales, Be Excellent Problem-Solvers.
November 10, 2006... If a credit union-or any financial institution of any size-is going to succeed for the long-term and attract new members in an era of extreme competition, then its personnel must think of themselves as "problem-solvers." Why? Because...

Federal Court Rules Against AIG, Giving Shareholders More Clout.
November 10, 2006... In what is being considered the most significant shareholder victory in corporate governance in a decade, a federal appeals court in New York in September rejected a long-standing policy of the Securities and Exchange Commission's division...

Noted and Noteworthy.
November 10, 2006... It's no bull. North Fork Bank and Wal-Mart were sued by the Italian sculptor of the "Charging Bull," the 7,000-pound symbol of Wall Street's might nestled in Lower Manhattan, for unauthorized use of the 16-foot hulk's image in their...

Brokerage Marketing Dollars Drop.
November 13, 2006... Bank marketing budgets peaked at $10.6 billion last year, after hovering around $10.5 billion for the past two years, but investment, insurance and trust departments aren't going to see much of that, according to the American Bankers...

Banks Spur SMA Growth.
November 13, 2006... Part of the rapid growth in the separately managed accounts (SMAs) market can be attributed to the arrival of banks and trusts at the party. That market has grown 20% a year since 2003, according to the Money Management Institute. Part of...

Data Governance: Struggling with the Numbers Crunch: Banks collect large volumes of data to guide their strategies. But much of that output is too fragmented and redundant to help.
November 13, 2006... Banks compile ever more diverse sets of data to help decipher business strategy and compliance issues. But they are discovering a problem with their analytical operations: the data itself. The glut of new information gleaned from siloed...

News Makers.
November 13, 2006... TEXT MESSAGING ISN'T ONLY FOR TEENAGERS MasterCard handles more than two million calls a year from traveling cardholders looking for an ATM. Now through a text-messaging service, the payments company can send the information to users'...

Elections Pit CU Funds Vs. CU Funds.
November 13, 2006... SAN DIEGO -- In the race to replace Rep. Randy 'Duke' Cunningham, the Republican congressman sentenced to prison for bribery, CU executives in the district lined up almost unanimously in May's special election behind former Congressman Brian...

Worth Noting.
November 13, 2006... Mon-Oc Has New Name WALL, N.J.-Mon-Oc Federal Credit Union changed its name with a branch campaign seeking a new name. Now known as First Financial Federal Credit Union, financial product specials and a contest to win a new car generated a...

Beware All Ye Who Enter The Board Room Of Doom.
November 13, 2006... "Are you sure you want to enter?" It was the third time he had asked me that question, every time flashing at me the kind of ivory-teeth smile found only among those who have access to someone else's money for the expensive dental work. I...

Don't Be Good At Sales, Be Excellent Problem-Solvers.
November 13, 2006... If a credit union-or any financial institution of any size-is going to succeed for the long-term and attract new members in an era of extreme competition, then its personnel must think of themselves as "problem-solvers." Why? Because...

Federal Court Rules Against AIG, Giving Shareholders More Clout.
November 13, 2006... In what is being considered the most significant shareholder victory in corporate governance in a decade, a federal appeals court in New York in September rejected a long-standing policy of the Securities and Exchange Commission's division...

Noted and Noteworthy.
November 13, 2006... It's no bull. North Fork Bank and Wal-Mart were sued by the Italian sculptor of the "Charging Bull," the 7,000-pound symbol of Wall Street's might nestled in Lower Manhattan, for unauthorized use of the 16-foot hulk's image in their...

UBS Buys Key Bank's McDonald.
November 14, 2006... In our September cover story, "Failure to Merge," we explored the difficulties of banks buying and integrating brokerages. KeyCorp, Key Bank's parent which acquired regional broker-dealer McDonald Investments in 1998, was a notable example....

Small Business, Challenge: It's not enough to have financial expertise-entrepreneurs need advisors who understand their specific businesses and pressures.(Company overview)
November 14, 2006... After years of being wallflowers to bankers, small businesses have become the belles of the ball. From the big cities to the suburbs and countryside, bank reps are grappling with how to get in front of small- business owners and become their...

Top Tech Deals.
November 14, 2006... Number One Open Solutions, Inc., which offers core processing, Internet and other technology services to banks and credit unions, was acquired by the Carlyle Group and Providence Equity Partners. The funds will pay $38 for each share of...

Compliance: Banks Rounding the Corner to Meet FFIEC Guidance Deadline: Will most institutions have compliant multifactor authentication in place by year's end? It depends.
November 14, 2006... It's a matter of weeks now until new federal guidance for user authentication comes on-line. At mid-year data experts figured four- fifths of financial institutions weren't ready for the deadline; now it appears it will by and large be met,...