The chief technology budget priority for credit unions this year is sophisticated new security identification solutions, according to Callahan & Associates' 2005 Credit Union Technology Survey.
Callahan's reported that 95% of respondents to its survey listed multi-factor authentication and biometrics as a priority for technology spending this year, although just 3% have such solutions already in place.
Callahan's said the technologies being mulled involve multi-factor authentication goes beyond typical password or PIN identification to require a member to also provide other information for log-in identification, such as a random numeric password that changes at intervals and can be accessed from a hand-held security token. Biometrics uses some part of a member's physical characteristics or behavior for cross identification such as fingerprint scanning or verifying a user's typing habits on a keyboard.
The survey found the second most popular spending priority for credit unions in the survey was Voice over Internet Protocol (VoIP), with one-third of respondents indicating their credit unions are examining VoIP as a means of cutting phone expenses.
Callahan's said the responses are based on 126 credit unions answering the survey that was sent to credit unions with more than $25 million in assets representing 10% of industry assets and have an average size of $564 million in assets.
For info on the 430-page survey: www.CreditUnions.com/TechSurvey or 800-446-7453.
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