New horizon community credit union

What's on Your Tech Horizon?

IT experts discuss the what, why, and when behind their technology investments.

Q What new technologies do you plan to implement in 2004?

McClain: We're rolling out an electronic transaction account where we'll bundle together a share draft account with bill payment, a Visa debit card, electronic statements, and online check imaging. We want our members to use technology when they conduct business with us.

We'll be using Summit Information System's [Corvallis, Ore.] data processing platform to do these things. Moving from having just a basic share account to having an electronic transaction account is new for us.

Dangerfield: We're going to implement signature capture and identification [ID] scanning. We'll have a laptop with these capabilities so our marketing representative can sign up members when visiting select employee groups.

We're implementing this new technology because of the USA PATRIOT Act and because it's a great service for members. With ID scanning, you can bring up a member's picture onscreen, which reduces fraud. And it will speed the sign-up process because members won't have to take the time to show other ID, such as a driver's license.

We're also going to implement a new intrusion-detection system to protect our network. It helps to protect member data and prevent hackers from getting member information. Also, an intrusion-detection system will notify me or someone in my department by cell phone or pager of an intrusion, while a firewall just stops an intruder. And if it doesn't, you don't know a hacker is in.

Gingery: We're looking at implementing a virtual private network [VPN] over the Internet and using broadband connections. This will save money. Currently, a wide area network connection costs us about $300 a month for a 56K frame relay connection at four branches. A VPN through the Internet creates an encrypted tunnel from the branch to the main office. Branches then can use the resources of the main office. The cost for that is very low. We can get a broadband connection for about $80 a month. The necessary hardware also is inexpensive-a VPN appliance costs about $200. That's a one-time cost. We're looking at implementing this solution at our 30-plus branches across the country.

Q How do you decide which technologies to implement?

Gingery: We look at the cost and what the technology's anticipated use is among members. If it costs $80,000 and only 200 people use it, you're not getting your money's worth. It's a cost-benefit analysis.

You also have to look at whether the technology is leading-edge, if it has proved to be workable, and if it's easy to implement. You need to determine whether the technology can be integrated with your other systems.

McClain: Cost is a consideration, but so is functionality. We look first at what we want to do and then consider the available technology. We don't say, "Hey, this technology is great. How can we implement it?" We also make sure the technology interacts well with our core processing system.

Dangerfield: Technology we implement helps us serve members better or provide more efficient processes and, therefore, reduce staff's worldoad. Some of these things can be costly. But not doing them can result in even more expense.

Q How will these tools help your CU meet its goals for 2004?

McClain: We want to retain our current membership and attract new members. We're located in our sponsor company's facility, so people who don't work here don't have access to us. By offering electronic transaction accounts, we can serve members' families and members who leave to work somewhere else. We're not expanding our field of membership.

Dangerfield: Our primary goal is to improve member service continuously and to provide our community with an accessible institution. We provide online bill payment, e-statements, and home banking so members have access to their accounts anytime.

Q How do you decide which technologies are worth your investment?

McClain: We look at what we'd like to offer our members and see if it's a good fit for us. Some of the technology that's out there, such as customer relationship management [CRM], doesn't really fit in an organization of our size.

Dangerfield: We have a wish list and prioritize depending on what would be most beneficial to members. For example, we might look at items that would improve security for members. And we want all member service representatives to be able to reset online banking passwords rather than having one person do that for the entire credit union and make the member wait. By prioritizing this way, we can decide which technologies to implement and which ones we might pass over until the following year.

Gingery: We've looked at CRM software, but we've determined that requires a cultural change as well as a technology change. With the economy the way it is, we're looking at using our existing technology better than we are now.