VA-based smart card integrator and smart card software development company, 3GI, was named the fifth fastest growing technology company in Virginia yesterday with an astounding 6400% growth rate over the past five years. The company has 80 employees and expects to double during the next twelve months. Earlier this week 3GI and Lockheed Martin IMS partnered to roll-out the ‘Multi Application Integrated Circuit Card’ system. The new hybrid card contains a mag stripe for an EBT food stamp program and a chip to track and manage data on the WIC Program and Head Start pre-school program. The firm has also partnered with U.S. Bancorp to develop multi-application smart card systems for U.S. Bank’s IMPAC program.
American Management Systems (AMS) and Dozier Electronic Commerce Solutions today announced an alliance to provide their clients full collections and recovery management support for consumer and small business financial accounts. The alliance, announced at the Credit Card Collections Conference VI, enables clients of AMS’s collections solutions, CACSPlus(R) and CMS(R), to process seriously delinquent accounts through integration with Dozier Electronic Commerce Solutions’ broad based network of third party collectors.
Using advanced decision management techniques, a financial institution can determine which customer accounts to outsource for recoveries and which accounts to retain. Dozier Electronic Commerce Solutions assists in determining the most effective strategies for handling pre-charge-off and charge-off accounts through advanced relational analyses and segmentation modeling, and maintains the accounting for charged-off accounts. Dozier also provides full portfolio performance reports to the financial institution.
“Financial institutions are seeking flexible ways to manage delinquent accounts, consistent with their overall relationship with their customers,” said Sandra Devine, Vice President, AMS’s Consumer Financial Services Group. “AMS’s alliance with Dozier gives our clients an excellent option to effectively manage their risk on delinquent accounts while maintaining their own relationship with particular customers or customer segments.”
“This fully integrated solution significantly increases a financial institution’s return on delinquent account portfolios through active account management using a variety of distribution channels,” said John Dozier, President and CEO of Dozier Electronic Commerce Solutions. “We are pleased to work with AMS to provide its clients these enhanced collections and risk management services.”
Dozier Electronic Commerce Solutions is a business process outsourcer providing electronic commerce, data warehousing and portfolio analysis services to the debt collection industry. The company’s offerings include legal network services, financial EDI (Electronic Data Interchange), and portfolio segmentation analytics. Dozier also delivers innovative electronic commerce solutions to a far range of companies moving information in the debt collection industry. Dozier Electronic Commerce Solutions is an award winning, privately held, venture-backed technology company headquartered in Richmond, Virginia.
AMS’s business is to partner with clients to achieve breakthrough performance through the intelligent use of information technology. AMS is an international business and information technology consulting firm that provides a full range of services: business re-engineering, change management, systems integration, and systems development and implementation. AMS, which completed its 27th consecutive year of growth, is headquartered in Fairfax, Virginia, with offices in 53 cities worldwide. AMS’s revenues for 1996 were $812 million.
AMS’s site on the World Wide Web is:
Dozier Electronic Commerce Solutions’ site is:
CyberCash, Inc., a technology-driven company that provides software and services to enable secure financial transactions on the Internet, today announced business and operating results for the third quarter ended September 30, 1997.
Financial Summary Table
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
Revenues $ 1,514,243 $39,088 $ 2,481,999 $76,793
Costs and expenses $ 7,479,162 $ 8,324,172$24,671,398 * $20,275,801
Interest and other
income, net $405,851 $618,320 $ 1,099,217 $ 1,696,353
Net loss $ (5,559,068) $ (7,666,764)$ (21,090,182)$ (18,502,655)
Net loss per share $(0.51) $(0.72) $(1.94) $(2.00)
shares outstanding 10,912,656 10,656,536 10,843,558 9,233,691
*- Includes $2,162,500 for the acquisition of the NetBill technology license from Carnegie Mellon University and a one-time $344,242 restructuring charge.
CyberCash President and CEO Bill Melton said, “Many important developments have taken place for CyberCash in the third quarter of 1997. On the financial side, the Company raised $15 million in equity capital through a private placement of convertible preferred stock. As we reported when the financing closed in August, we believe the terms of the transaction are very favorable to the Company and its current shareholders. This infusion of new equity provides CyberCash with a strong capital base on which to continue to build its business.”
“On the operating side,” Mr. Melton said, “we are beginning to see the increases in transaction volumes we had been anticipating. The average number of credit card transactions per day grew by 84% over the prior quarter. We continue to build powerful strategic alliances and we have succeeded in integrating our technology into nearly every major e-commerce platform. For example, in September we became a premier Commerce Application Partner of Microsoft, delivering two new CyberCash payment components for the Microsoft Wallet and Microsoft Site Server, Enterprise Edition. This and similar relationships with other e-commerce solutions providers simplifies online payment for all parties involved.”
“We have also continued to develop strategic relationships with large financial institutions and major merchants around the world in order to establish CyberCash as the vendor of choice for Internet payment applications. In August we announced a joint venture with Softbank Corporation and other leading Japanese partners to provide secure yen-based Internet payment services to banks, credit card companies, merchants and consumers. Just last week, we joined with Barclays Bank, UK, in announcing that BarclayCoin is now available to UK consumers via BarclaySquare, the UK’s leading virtual mall. Other well-known retailers that are now using CyberCash’s payment solutions are Macy’s, Virtual Vineyards and OshKosh B’Gosh.”
In addition to growth in the credit and coin services, the third quarter saw increasing acceptance of the PayNow(TM) Secure Electronic Check Service. PayNow enables billers to accept electronic check payments directly at their website. In September of 1997, CyberCash extended its lead in the “biller direct” processing model for Internet-based bill presentment and payment by entering a partnership with BlueGill Technologies, Inc. The second generation of the PayNow software and services (originally introduced in January of 1997) has now been brought online and is processing live electronic check transactions for companies in the utility, telecommunications and financial services industries. CyberCash’s processing capabilities and partnerships with companies such as International Billing Services, Price Waterhouse, Coopers & Lybrand, and eDocs positions it to take a leading role in what is expected to be a very large market for Internet bill presentment and payment services.
During the third quarter the Company’s core business increased significantly. Revenues for the three months ended September 30, 1997 increased to $1.5 million from $39,000 for the third quarter of 1996. Recurring revenues increased 24% from the prior quarter to $114,000 and other revenues increased 94% to $1.4 million primarily from software development and technology licensing related to our international expansion. The number of merchants using CyberCash’s Internet payment services increased from 1,048 to 1,676 during the third quarter of 1997, while the number of daily credit card transactions increased 84% during the same period to 22,300.
“These increases provide an important measure of the growing acceptance of e-commerce,” Mr. Melton said. “Equally important, for the third consecutive quarter, CyberCash kept its operating costs under our target of $7.5 million per quarter. And we remain committed to maintaining operating expenses at this level through 1997.”
Third Quarter 1997 Highlights
— CyberCash announced the availability of two new payment components for the Microsoft Wallet and Microsoft Site Server, Enterprise Edition. This will provide users of Microsoft’s e-commerce software with integrated solutions that simplify electronic commerce and increase flexibility and security for all parties involved.
— CyberCash raised $15 million in equity capital through a private placement of convertible preferred stock to two private equity funds. The transaction was structured with a view to limiting dilution to existing stockholders.
— CyberCash announced a joint venture, CyberCash K.K., to offer yen-based Internet payment services in Japan. The Company’s joint venture partners include Softbank Corporation and other leading Japanese companies including banks, credit card companies and technology companies. The service will be launched with approximately 20 Japanese merchants selling products online.
— CyberCash announced the establishment of a joint venture, CyberCash GmbH, to offer Deutsch Mark-based Internet payment services throughout Germany. The partners in the joint venture include Dresdner Bank, AG and Sachsen, LB. The joint venture will launch CyberCoin, a micropayment service, and electronic direct debit (EDD) from personal bank accounts to merchant banks accounts for payment of goods and services in the fourth quarter of 1997.
— Charles T. Russell, former CEO and President of Visa International, joined CyberCash’s Board of Directors. Mr. Russell headed Visa International, a bankcard association of more than 18,400 member financial institutions which operate the world’s largest consumer card payment system, from 1984 to 1994.
— CyberCash formed an agreement with Price Waterhouse to help financial institutions empower their Internet merchants and billers to accept electronic payments directly on their websites. As part of this agreement, Price Waterhouse will provide financial institutions and their billers with advisory services for evaluating their electronic currency options and will identify a solution that positions the financial institution for the commercial marketplace of the future.
— CyberCash joined with iCat and First USA Paymentech to offer merchants a one-stop-shop for electronic commerce, from catalog creation, management and delivery to secure transaction processing. This combination of industry leading Internet catalog software and complete payment services eliminates confusion for merchants, providing them with a single source to completely set up shop online.
— CyberCash’s CyberCoin(R) micropayment system was selected by SegaSoft(TM) for HEAT(TM), Sega Soft’s new game network, and SegaSoft.com, the company’s corporate web site. With CyberCoin service, SegaSoft will be able to offer consumers hundreds of low-cost items that they can order and pay for online.
— CyberCash announced that it will offer an Internet billing solution with BlueGill Technologies 1to1Server(TM), providing a full, interactive solution to companies that want to deliver bills and statements online and have them paid directly at their website.
— Merchants using CyberCash’s services increased to 1,676 at the end of the third quarter from 1,048 at the end of the second quarter, while the average number of credit card transactions per day increased 84% during the same period to 22,300.
CyberCash, Inc., headquartered in Reston, Virginia, USA, provides enabling technology and services that allow secure payment transactions on the Internet. The Company offers a complete suite of Internet payment services including a credit card service which handles payments using major debit and credit cards, an innovative micropayment service which enables cash transactions and a secure electronic check service which allows consumer-to- business and business-to-business payments from a bank account. CyberCash is traded on the Nasdaq Stock Market, under the symbol CYCH. CyberCash’s Web address is .
This press release contains statements that are forward looking. They are based on the Company’s current expectations, and are subject to a number of uncertainties and risks. The Company’s actual results may differ materially. The uncertainties and risks include the pace of growth of Internet commerce, the development by the Company and its competitors of new products and services, strategic decisions by major participants in the industry, competitive pricing pressures, legal and regulatory developments and general economic conditions. Further information about these and other relevant risks and uncertainties may be found in the Company’s report on Form 10-K and its other filings with the Securities and Exchange Commission, all of which are available from the Commission and from the Company’s worldwide web site , as well as other sources.
To receive CyberCash’s latest news and corporate developments via fax at no cost, please call 1-800-PRO-INFO. Use company code CYCH.
Consolidated Statements of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
Revenues $ 1,514,243 $39,088 $ 2,481,999 $76,793
Costs and expenses $7,479,162 $8,324,172 $24,671,398* $20,275,801
Interest and other $405,851 $618,320 $ 1,099,217 $1,696,353
Net loss $(5,559,068) $(7,666,764)$(21,090,182) $(18,502,655)
Net loss per share $(0.51) $(0.72) $(1.94) $(2.00)
shares outstanding 10,912,656 10,656,536 10,843,558 9,233,691
* – Includes $2,162,500 for the acquisition of the NetBill technology
license from Carnegie Mellon University and a one-time $344,242
Consolidated Balance Sheets
September 30, December 31,
Cash and cash equivalents $20,526,142 $33,687,076
Short-term investments 8,779,773 —
Other assets 2,889,225 1,733,341
Property and equipment, net 4,833,187 5,629,664
Total assets $37,028,327 $41,050,081
Current liabilities $2,514,189 $2,940,595
Series C Preferred Stock 14,275,945 —
Total stockholders’ equity 20,238,193 38,109,486
Total liabilities and
stockholders’ equity $37,028,327 $41,050,081
Business customers: Need a loan? Just pick up the phone! With the Business Products by Phone service just made available through First Citizens Direct, new and existing customers can now apply for business loans and deposit products by calling the same 1-888- FCDIRECT (323-4732) number that customers already use. Service hours are 8 a.m. to 8 p.m. Monday through Friday, and 9 a.m. to 1 p.m. on Saturday.
“The new service is designed to serve business customers and the branches by offering the convenience of the telephone and the flexibility of non- traditional hours,” said Cyndi Holding, project manager. Those products will include commercial checking and savings accounts, certificates of deposit, PC banking for businesses and small business sweep accounts. In addition, business customers can use the telephone to apply for business loans, Business Checkline Reserve, business credit cards and capital lines of credit.
The core staff of specially-trained telephone business bankers and a telephone banking assistant handle incoming calls. For real estate loans, Telephone Banking follows through by scheduling the closing with an attorney, arranging for loan document preparation, and preparing the loan proceeds check. For non-real estate loans, Telephone Banking coordinates a branch closing with one of First Citizens’ 321 branches in North Carolina and Virginia.
“Offering the convenience of telephone banking to the business community is an important step in maintaining our competitive edge,” said Jay Parker, executive vice president.
“Research shows there is an emerging group of business customers who are demanding the convenience of telephone banking,” said Jamie Duke, FCDirect executive. While some business customers prefer to meet personally with their local banker, others don’t have time to visit a traditional branch during normal business hours.
Telephone banking has proven extremely popular among First Citizens’ retail customers. Each month, telephone bankers handle approximately 60,000 calls per month. “What’s especially important to note,” said Larry Kittrell, who runs Telephone Banking, “is the increase in the percentage of calls we’re getting from non-customers who become customers.”
First Citizens operates more than 300 branches in nearly 200 cities and towns in Virginia and North Carolina. Headquartered in Raleigh, N.C., the bank has more than $8 billion in assets.
Capital One Financial Corporation today announced a quarterly dividend of $.08 per share payable November 19, 1997, to stockholders of record as of November 4, 1997. This is the Company’s eleventh consecutive quarterly dividend since its February 28, 1995, spin-off from Signet Banking Corporation. Dividends declared by the Company are eligible for direct reinvestment in the Company’s common stock under its Dividend Reinvestment and Stock Purchase Plan. For additional plan information, stockholders should contact ChaseMellon Shareholder Services at 800-685-4518.
Headquartered in Falls Church, Virginia, Capital One Financial Corporation is a financial services company whose principal subsidiaries, Capital One Bank, and Capital One, F.S.B., offer consumer lending products. Capital One’s subsidiaries collectively had 10.7 million customers and $13.5 billion in managed loans outstanding as of September 30, 1997, and are among the largest providers of MasterCard and Visa credit cards in the world.
Note: This release and financial information are available on the Internet on Capital One’s home page (). Click on “Financial Information” to view/download the release and financial information.
CyberCash and the U.K.’s Barclays Bank went on-line yesterday with an electronic wallet to enable consumers to make small purchases between 25p and Pound Sterling 10.00. The micropayment technology is being offered to visitors of the U.K.’s leading virtual mall, ‘BarclaySquare’. Barclays says more than 1.5 million consumers have visited the Web site since its launch two years ago. Among the first BarclayCoin transactions was a purchase of a Winnie the Pooh Bear via Pooh Corner.
IBAA Bancard announced today a new affiliation with the Virginia Association of Community Banks. With this announcement, the VACB joins 32 state banking organizations that exclusively endorse IBAA Bancard’s merchant program. Forty-two Virginia banks are already participants in IBAA Bancard programs, issuing credit and debit cards at competitive rates.
“Both the VACB and IBAA Bancard provide invaluable service to community banks. I am happy to see them working together to serve the community banks of Virginia,” remarked VACB president and IBAA Bancard Director Ron Miller.
“We are very pleased with the quality service of IBAA Bancard and we recommend them as a credit card and merchant service provider to all of our member banks,” said Patricia Satterfield, the state organization’s executive director. “With Bancard, our members can add a profitable product, maintain their independance and give their customers the best service available.”
“It is a great pleasure to welcome the Virginia Association of Community Banks as the newest addition to the IBAA Bancard family of state associations,” noted IBAA Bancard Chairman Richard Mount.
IBAA Bancard was launched in 1985 by the Independent Bankers Association of America and providers community banks with the opportunity to become independent issuers of Visa and MasterCard credit and debit cards. IBAA Bancard is the only national card program dedicated exclusively to the payment system needs of the nation’s community banks.
Allied Irish Banks, p.l.c. (AIB) (NYSE: AIB; AIBPR; FMBPR) today announced that its wholly-owned US subsidiary, First Maryland Bancorp, has reported earnings of $53.5 million for the three months ended September 30th, 1997, a 58.8% increase on 1996. These results include an after-tax gain of $17.4 million from the sale of bankcard loans. Excluding this gain, earnings for the quarter were $36.1 million reflecting an underlying growth of 10% in the core business of both First Maryland and Dauphin.
During the quarter First Maryland sold $360 million of bankcard loans originated under a co-branding arrangement with Bell Atlantic to Chase Manhattan Corporation. The sale resulted in a pre-tax gain of $28.2 million including attributable allowance for credit losses and costs associated with the sale.
For the nine months period ended September 30th, 1997, First Maryland announced earnings of $123.5 million, representing a 28.2% increase over the comparable period in 1996. Excluding the gain from sale of bankcard loans, earnings for the nine months ended September 30th, 1997 were $106.0 million, an increase of 10.1%.
On July 8, 1997 AIB Group completed its merger with the former Dauphin Deposit Corporation which is now a wholly owned subsidiary of First Maryland Bancorp. The third quarter results include the impact of the acquisition of Dauphin which performed strongly and in line with our expectations.
Highlights of First Maryland’s underlying performance for the third quarter were strong growth in retail lending (+14.5%) and commercial lending (+8.5%) since December 1996; and good growth in deposit service charges (12%) and trust and advisory fees (22%) over the comparative period in 1996.
Commenting on the results, Tom Mulcahy, AIB Group Chief Executive said: “The strong third quarter earnings were attributable to continued growth in our core retail, corporate and trust businesses, while we also made significant progress in the integration of the Dauphin franchise. With the completion of the Dauphin acquisition, we are now positioned to take advantage of our leading market share in the Harrisburg/Baltimore corridor while continuing the process of integrating the Dauphin franchise.”
Asset quality remains strong with non-performing assets of $89.7 million amounting to 0.52% of total assets. Non-performing loans of $72.0 million were covered 244% by total provisions of $175.5 million.
First Maryland Bancorp is the holding company for the First National Bank of Maryland, Dauphin Deposit Bank, The York Bank and First Omni Bank. Headquartered in Baltimore, First Maryland operates 291 branches and nearly 400 ATMs from southern Pennsylvania through Maryland and the District of Columbia and into northern Virginia. First Maryland currently has assets of $17.3 billion.
FIRST MARYLAND BANCORP AND SUBSIDIARIES
Consolidated Statements of Condition
September 30 December 31 September 30
1997 1996 1996
Cash and due from banks $963,763 $842,032 $826,779
Money market investments 101,233 75,260 46,896
available-for-sale 4,320,034 2,552,620 2,801,694
Loans held-for-sale 434,438 150,742 159,885
Loans, net of unearned income of
$175,408, $130,026 and $121,251:
Commercial 2,827,189 1,731,031 1,787,747
Commercial real estate 2,228,170 1,453,244 1,418,975
Residential mortgage 1,045,602 833,045 838,208
Retail 2,509,844 1,380,767 1,340,145
Bankcard 142,510 596,474 468,190
Leases receivable 730,501 438,060 399,495
Foreign 394,473 365,824 362,401
Total loans, net of
unearned income 9,878,289 6,798,445 6,615,161
Allowance for credit losses (175,462) (154,802) (170,529)
Loans, net 9,702,827 6,643,643 6,444,632
Premises and equipment 195,026 106,701 106,254
Due from customers on acceptances 10,987 8,725 9,878
Intangible assets 1,076,027 98,847 107,840
Other assets 459,991 312,454 338,039
Total Assets $17,264,326 $10,791,024 $10,841,897
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest bearing deposits $2,629,276 $2,248,252 $2,224,720
Interest bearing deposits 9,028,348 5,135,616 5,130,774
Interest bearing deposits in
foreign banking office 194,640 113,830 142,896
Total deposits 11,852,264 7,497,698 7,498,390
Federal funds purchased and
securities sold under
repurchase agreements 1,349,423 533,547 609,980
Other borrowed funds, short-term 805,393 821,477 647,236
Bank acceptances outstanding 10,987 8,725 9,878
Accrued taxes and other liabilities 585,150 297,525 309,501
Long-term debt 409,971 229,742 554,729
Guaranteed preferred beneficial
interests in Company’s junior
subordinated debentures 295,758 147,113 –
Total Liabilities 15,308,946 9,535,827 9,629,714
Redeemable preferred stock 7,847 7,700 9,000
Total stockholders’ equity 1,947,533 1,247,497 1,203,183
Total liabilities, redeemable
preferred stock and
stockholders’ equity $17,264,326 $10,791,024 $10,841,897
FIRST MARYLAND BANCORP AND SUBSIDIARIES
Consolidated Statements of Income
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
(in thousands) (in thousands)
Interest and fees on loans $200,495 $130,600 $476,305 $384,869
Interest and dividends on
Taxable 66,044 40,341 143,530 125,008
Tax-exempt 5,186 1,572 7,970 4,842
Dividends 1,388 455 2,761 1,035
Interest and fees on loans
held-for-sale 7,554 2,467 11,550 6,571
Interest on money market
investments 2,606 3,054 15,786 11,334
Total interest and
dividend income 283,273 178,489 657,902 533,659
Interest on deposits 96,626 51,736 197,807 152,706
Interest on federal funds
purchased and other
short-term borrowings 31,814 15,330 74,395 54,710
Interest on long-term debt 7,596 9,457 16,668 27,782
Interest on guaranteed preferred
beneficial interests in Company’s
junior subordinated debentures 5,327 – 14,735 –
Total interest expense 141,363 76,523 303,605 235,198
NET INTEREST INCOME 141,910 101,966 354,297 298,461
Provision for credit losses 7,434 2,000 26,634 6,000
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 134,476 99,966 327,663 292,461
NON INTEREST INCOME
Gain on sale of bankcard loans 28,155 – 28,155 –
Service charges on
deposit accounts 26,437 20,376 69,978 58,791
Mortgage banking income 18,110 10,904 30,981 22,810
Trust fees 14,330 7,470 31,177 20,920
Servicing income 8,489 7,401 20,515 19,236
Credit Card income 7,385 2,056 12,545 8,262
Securities gains (losses), net (230) (126) 278 175
Other income 16,830 9,303 43,276 29,865
Total non interest income 119,506 57,384 236,905 160,059
NON INTEREST EXPENSES
Salaries and wages 74,141 47,325 168,005 134,458
amortization expense 16,218 2,680 20,722 6,018
Other personnel costs 14,835 9,691 37,553 34,664
Equipment costs 11,895 8,103 28,949 24,474
Net occupancy costs 10,550 8,511 26,689 23,683
Other operating expenses 41,624 26,713 88,479 78,206
Total non interest expenses 169,263 103,023 370,397 301,503
INCOME BEFORE INCOME TAXES 84,719 54,327 194,171 151,017
Income tax expense 31,190 20,625 70,715 54,712
NET INCOME $53,529 $33,702 $123,456 $96,305
Cap One realized a remarkable quarter as earnings hit $49 million compared to $39 million last quarter and $38 million in the third quarter 1996. During the third quarter, the Company added 868,000 net new consumer accounts, bringing the total to 10.7 million, or a 32 percent annualized growth. Managed consumer loans increased by $736 million to $13.5 billion in outstanding receivables. The managed net interest margin increased to 9.05 percent in the third quarter of 1997 from 8.30 percent in the second quarter of 1997 and 8.35 percent in the comparable period of 1996. This increase principally reflects growth in the Company’s higher-yielding loans, the impact of repricing $700 million in introductory rate credit card loans during the quarter and scheduled increases in fees. The managed net charge-off rate increased to 6.66 percent in the third quarter of 1997, compared with 6.38 percent in the previous quarter. This increase reflects the continued aging of the portfolio and the effect of increases in industry losses. Delinquency rates increased slightly to 6.36 percent as of September 30, compared with 6.33 percent as of June 30.
Applied Communications, Inc. (ACI), a subsidiary of Transaction Systems Architects, Inc. (Nasdaq: TSAI), announces the licensing of its PRM (Predictive Risk Management) solution to HONOR Technologies, Inc., one of the largest electronic funds transfer organizations in the U.S. HONOR has been a user of ACI’s BASE24 EFT software since 1993 and will integrate PRM with its BASE24 off-line debit and terminal driving platform to help clients reduce fraud.
“Fraud is a problem that ends up costing everyone,” said Paul Schmelzer, executive vice president of HONOR Technologies. “Financial institutions using our debit and ATM processing services require a solution that not only limits their exposure to existing fraud, but can adapt to new criminal patterns before potential losses multiply. PRM gives us the ability to meet that requirement with an integrated solution that monitors both ATM and debit card activity.”
ACI’s PRM solution, which includes patented neural-net technology provided by Nestor, Inc. (OTC: NEST), identifies subtle patterns of fraudulent behavior by comparing individual card usage with known patterns of fraud. Transactions are monitored in a near real-time environment and when a suspicious transaction is found, the neural network flags it for prompt and appropriate action. PRM’s neural-network technology and easy-to-use graphical interface can reduce losses due to lost, stolen, counterfeit and other credit card fraud.
“PRM gives HONOR a proactive method to reduce losses from debit and ATM card fraud,” said Marlin Howley, vice president of Distributed Solutions at ACI. “It’s ability to recognize current fraudulent activity, and adapt to new schemes, offers a major improvement over rule-based checks and statistical score cards. And, PRM enables HONOR to offer a risk management service to its clients which meets emerging industry requirements.”
Easily configurable, PRM allows fraud managers to define and manage investigation steps and queues, electronically review alerts, take automatic action and track effectiveness of all account-monitoring activities.
HONOR Technologies, Inc. is headquartered in Maitland, Fla., and serves more than 40 million cardholders and 1,870 financial institution members with more than 28,000 ATMs and 350,000 merchant Point of Sale terminals. HONOR Technologies processes more than 80 million transactions per month, and offers a variety of EFT services such as terminal driving, card production, MasterMoney and Visa Check Card processing and home banking.
HONOR serves members across the Mid-Atlantic and Southern regions of the United States, with primary operations in Alabama, Delaware, Florida, Georgia, Maryland, North Carolina, New Jersey, Pennsylvania, South Carolina, Tennessee, Virginia, Washington, D.C. and West Virginia. In addition to its Maitland headquarters, HONOR Technologies, Inc. has offices in Birmingham, Ala.; Reston, Va.; Columbia, S.C.; and Altamonte Springs, Fla.
Nestor, Inc. is a leading provider of intelligent decision-support solutions for the financial services industry. Nestor’s client/server products incorporate innovative pattern-recognition technologies ideally suited for data-intensive, mission-critical decision applications in real-time environments. The company’s products for financial institutions support fraud detection and case management for credit, debit, retail and corporate card fraud, as well as merchant fraud; bankruptcy prediction; and Internet customer support applications. More information can be obtained via the company’s web site at [http://www.nestor.com.]
Applied Communications, Inc. is a subsidiary of Transaction Systems Architects, Inc. (Nasdaq: TSAI). Transaction Systems’ software facilitates electronic payments and electronic commerce by providing consumers and companies access to their money. The company’s products are used to process transactions involving credit cards, debit cards, smart cards, remote banking services, checks, wire transfers and automated clearing and settlement. Its solutions are used on more than 2,500 product systems in 68 countries on six continents.
Visit TSA and ACI on the World Wide Web at http://www.tsainc.com.
HONOR will host its 1997 Annual Conference–“A Meeting of the Minds”–on October 26-28, 1997, at the Buena Vista Palace & Spa, located at the Disney World Village in Lake Vista, Fla. This will be the first network-wide meeting since the merger of the HONOR®, MOST® and ALERT® networks in January.
“The conference provides an excellent opportunity for financial institutions and processors to learn more about HONOR’s upcoming plans and the overall state of the EFT industry,” said Mary A. Kilby, senior vice president of marketing and strategic planning at HONOR. “We have assembled an impressive list of speakers in many areas of expertise, and we look forward to meeting our new members and clients.”
Conference activities will begin on Sunday afternoon, October 26, with a series of training and educational sessions. On Monday, T.O. Bennion, president and CEO of HONOR, will officially open the meeting with his welcoming address. The keynote speaker for the conference will be Susan Dentzer, chief economics correspondent of U.S. News & World Report, who will discuss the economy and its impact on banking and electronic funds transfer. Other Monday morning sessions include a panel discussion on “The Future of Retail Delivery,” featuring Jack Benton of Benton International, Jeffrey Kutler of the American Banker, Deborah McWinney of Visa, Richard Redick of Barnett Bank and Mary Jo Winterer of MasterCard.
Subsequent program topics include such wide-ranging issues as marketing, fraud prevention, smart card technology, electronic benefits transfer (EBT), off-line debit card programs and home banking.
“With the many changes at HONOR and in our industry, this conference takes on special significance,” said Kilby. “We look forward to an enjoyable, informative and productive three days with our members, clients and industry associates.”
HONOR Technologies, Inc. is headquarted in Mainland, Fla. and serves more than 40 million cardholders and 1,870 financial institution members with more than 28,000 ATMs and 350,000 merchant Point of Sale terminals. HONOR processes more than 80 million transactions per month, and offers a variety of EFT services such as terminal driving, card production, MasterMoney and Visa Check Card processing and home banking.
HONOR serves members across the Mid-Atlantic and Southern regions of the United States, with primary operations in Alabama, Delaware, Florida, Georgia, Maryland, North Carolina, New Jersey, Pennsylvania, South Carolina, Tennessee, Virginia, Washington, D.C. and West Virginia. In addition to its Maitland headquarters, HONOR has offices in Birmingham, Ala; Reston, Va; Columbia, S.C.; and Altamonte Springs, Fla.
Huntington Bancshares Incorporated (HBI) has launched the next generation of its World Wide Web site. Earlier today, at a national video press conference, William Randle, executive vice president of Direct Access Financial Services, HBI, unveiled the new site.
The Huntington has created one of the most advanced, yet functional, web sites in the banking industry. The site’s next generation () was designed by Columbus-based Resource Marketing, a technology marketing firm.
“While many banks are using the Internet to provide limited online services to customers, there have been no clear leaders in this regard — until now,” said Peter Geier, Huntington Bancshares vice chairman. Some banks have successfully provided content, and even transactional capabilities, and others have blended business and personal banking services on a very limited basis, particularly by having customers dial into their bank’s system using bank-provided software. According to Huntington research, customers have indicated they want all three, seamlessly integrated, without having to use bank-proprietary software. There has been no comprehensive offering of all three available in the marketplace, especially over the Internet. The Huntington’s goal is to meet that need.
Like other bank web sites, The Huntington’s site provides corporate and product information, but distinguishes itself from the competition with an enhanced, online Transactional Center, as well as improved personal and business banking content.
These personal and business banking components feature a Customer Service Center, Internet Banking, as well as Personal Finance and Business Planning Centers, which include a wealth of information and “tools,” such as calculators for online use.
All of these components are presented by way of a contemporary, user- friendly, navigational system designed for use by a broad range of online users.
“Based on ongoing feedback from our customers and our assessment of current demands in the marketplace, Huntington.com delivers something more beneficial to the customer,” said Chet Thompson, senior vice president, manager of Electronic Commerce. “The new system is built around customers and the financial needs they have now and will have in the future, versus the typical information and basic services offered by other banks on their web sites. Currently, our strategic and technical teams are working on developing new applications which will support the additional products and services our customers are demanding, including credit cards, investments and mortgage services.”
According to Nancy Kramer, president of Resource Marketing, “Working with The Huntington’s marketing and technology teams, we delivered a customer- centered approach for their web site. This site design provides the capability to meet current customer needs and also has the architectural framework for adding services as those needs grow.”
The site is divided into three sections, including Huntington Web Bank, which not only describes personal and commercial products, but allows customers to utilize the planning tools and apply for Internet Banking. A second section, Corporate Information, features press and general information about the publicly-held bank holding company. Rounding out the site, and providing the most functionality, is the expanded and improved Transaction Center.
The center provides consumers with transactional capabilities, such as online bill paying, account reconciliation and reporting, in a secure environment. The Huntington Web Bank software was developed by Security First Technologies which spent years developing security technologies for the U.S. Department of Defense. This allows for multiple layers of security in place for the web bank service.
New features will include the ability to transfer funds between accounts and, eventually, will offer online investing and credit card statement reviews. Funds transfer services will be available in the next few weeks; investment and credit card services will be available in the first quarter of 1998.
“We’ve built a sophisticated web site, which is easy to use by a broad range of people and offers what our customers need. Rather than building in a lot of time-wasting bells and whistles, this is simply a practical, functional use of technology,” said Randle.
The site features a customized navigational system comprised of four components: universal functionality, primary navigation, secondary navigation and a wayfinder. While online within the system, a user is only one or two clicks away from any key area. The system also allows customers to manipulate data versus the view-only options found on many other bank web sites.
Work on the enhanced web site was launched by The Huntington and Resource in April, 1997. The work included detailed research and strategic planning, resulting in the creation of more than 2,000 frames of content and extensive user testing.
“We couldn’t be more pleased with the results of the work Resource put into making this site a useful banking tool for our customers,” Geier said. “There is a dramatic shift in the way we live, work and bank, and technology is the enabler. This web site will help ensure that all of The Huntington’s customers are at the forefront of the new ways to take control of their money.”
With over 131 years of serving the financial needs of its customers, Huntington Bancshares Incorporated is a regional bank holding company headquartered in Columbus, Ohio, with assets in excess of $25 billion. The Huntington provides innovative products and services through its 527 offices in Ohio, Florida, Georgia, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Pennsylvania, South Carolina, Virginia and West Virginia.
The Huntington also offers products and services through its technologically-advanced, 24-hour telephone bank, a 906-unit ATM network and its Web Bank at . Corporate communications and financial information are also available at this web site address. Publicly traded as Nasdaq: HBAN, the stock is included in the S&P 500 Index.
Resource Marketing is a 16-year-old technology marketing firm based in Columbus, Ohio with an office based in San Francisco. Total employment exceeds 110; revenues for 1997 are projected to be $75 million.