February 23, 2007
Is It Time for Financial Institutions to Replace Core Software?
The American Banker ran an article on Feb. 20, 2007, that picqued my interest. Chris Costanzo's article entitled "Are U.S. Banks Finally Ready to Convert Core?" suggests that with more emphasis on real time transaction processing, some old core systems just can't keep up. So will a wave of system updates occur at once? Will banks wait to convert their systems until they have a system failure? What about the expense, time, training, and adjustment issues? Will the attendant reduction in personnel and increase in customer responsiveness yield some extra positives? It appears that the mid-sized banks that have grown or changed focus may be the first to confront this issue.
(ag) Feb. 23, 2007, in Internet Banking, just because I don't have a better place to put it & because the increased emphasis on Internet Banking is a major driver for real-time transaction processing.
February 23, 2007 in Internet Banking | Permalink | Comments (1) | TrackBack
January 04, 2007
Exam Heads Up: Full Compliance Required for FFIEC Authentication Requirements
Examiners will be checking for compliance with the FFIEC Guidelines for Authentication in an Internet Banking Environment which were fully effective Dec. 31, 2006. Each of the Federal Banking Agencies sent out their own announcements of these new requirements in Oct. 2005 -- plenty of lead-time to implement them, but now the compliance examiners will get serious. These measures offer additional protection from identity theft for banks and their customers.
Key components of the new requirements:
- Risk assessment
- Customer education
- A statement that single-factor authentication will no longer be adequate for high-risk transactions involving access to customer information or funds transfers.
Link to FFIEC Announcement: http://www.ffiec.gov/press/pr101205.htm
FFIEC Guidance: http://www.ffiec.gov/pdf/authentication_guidance.pdf
FDIC FIL: http://www.ffiec.gov/ffiecinfobase/resources/info_sec/2006/fdi-fil-103-2005.pdf
OCC: http://www.ffiec.gov/ffiecinfobase/resources/info_sec/2006/occ-bul_2005-35.pdf
FRB, OTS, and NCUA have similar announcements.
(ag) Jan. 4, 2007, in Examination, Federal Banking Agencies, Identity Theft, Internet Banking
January 4, 2007 in Examination, Federal Banking Agencies, Identity Theft, Internet Banking | Permalink | Comments (0) | TrackBack
