Technology Spending Climbs For New Fraud Prevention Rule
WASHINGTON -- Credit unions are expected to boost their spending on technology this year, with the main focus on meeting new NCUA requirements for multifactor online authentication, according to Callahan & Associates' annual Technology Survey, released on Tuesday. The company's 15th annual technology survey found that 82% of respondents cited the new federal requirement for online authentication as their top priority for technology spending this year, but only 8% have a multifactor system in place. NCUA and the other banking regulators are requiring that all federally insured institutions enact a multifactor system by year-end. Tied for second on the priorities list are three initiatives: full data redundancy; back-up operations; and online funding for new member accounts. Credit unions are expecting to spend as much as $2.2 billion on technology installation, maintenance, staffing and support in 2006.