Biometric Digest to Discuss Biometrics in Credit Unions



May 9, 2005 -- Use of biometric identification technology in financial institutions continues to grow, especially in credit union s, according to Bill Rogers, Publisher of the "Biometric Digest" newsletter. Rogers will address credit union s as part of the annual Discovery Conference sponsored by CUNA Mutual Group in Orlando, FL on June 17. CUNA Mutual is the leading provider of insurance and technology related programs for credit union s.

More than 50 credit union s across the country currently use biometric identification. The current trend is for single sign-on capabilities for employees accessing multiple computer programs as part of their daily operations. Another trend in credit union s, along with many other financial institutions, is use of hand geometry for access to safe deposit boxes. A Safe Deposit Box Department operates totally unmanned with no delays for their users. "I watched an elderly woman approach the safe deposit box vault, enter her account number on a pad and then placed her hand on a hand geometry device. The vault door popped open and in she walked. There were no credit union employees around other than a general receptionist who could lend help in case it was needed," said Rogers.

San Antonio City Employees Federal Credit Union installed a system in their safe deposit box department to reduce costs, provide increased security and positive identification of their members and to improve member service. The credit union is considering use of biometrics for physical access and possibly access controls for members using their financial services from home. The credit union serves more than 40,568 members and has assets of $278 million.

Biometrics is also very affordable for much smaller credit union s. Riverside Health System Employees Credit Union in Newport News, VA serves 3,500 members with assets of $7.5 million. They installed three kiosks using fingerprint identification from Real Time Kiosks, a division of Real Time Data Management. The credit union says the primary benefits include increased security and positive ID of their members, reduced costs, a substitute for branch offices and to provide service 24 hours a day, 7 days a week.

Purdue Employees Federal Credit Union in West Lafayette Indiana was the first financial institution in the country to install a biometric identification system. Today they have five fingerprint kiosks installed with more on the way. The credit union serves over 55,500 members with over 17,700 members enrolled to use their biometric kiosks. They are looking to eventually use biometrics to identify members at the teller counter and employee authentication on their network.

According to Fujitsu Services, one in three banking customers is ready to embrace biometric technologies in the hope of adding greater security to their finances. Card cloning, PIN theft by shoulder surfing and high-profile phishing attacks are all undermining consumer confidence in secure banking and many would be happy to use biometric solutions such as digital fingerprints to add an extra layer of authentication and security.

"Biometric security can be used to build member confidence and to reduce fraud and stolen identity," said Rogers.

Bill Rogers is a veteran credit union consultant based in St. Louis, Missouri. Rogers set up and managed the data processing division for the Missouri Credit Union Association (formerly "Missouri Credit Union League") for more than 14 years and served credit union s for six years as part of the CUNADATA and EDS credit union division. He has provided consulting services for credit union s since 1988 and currently sponsors several credit union conference programs across the country. He is a frequent speaker on biometric technology. His presentation at the up-coming CUNA Mutual Discovery program focuses on case studies of credit union s using biometrics.

He can be reached at William Rogers & Associates, Inc., P.O. Box 510047, St. Louis, MO 63151, Telephone 800-745-2455, E-mail: e-mail protected from spam bots.





Biometric Digest to Discuss Biometrics in Credit Unions