Headlines:
N.D. Bank Pleased with Fraud Software Metavante to Continue Buying? Rabobank Using Siebel CRM Software Patent for Xign Digital Signature System
N.D. Bank Pleased with Fraud Software
First Western Bank and Trust of Minot, N.D., says a system it is using to evaluate signatures and printed features on checks has improved its ability to spot potentially fraudulent items.
The $354 million-asset unit of WestBrand Inc. began using the FraudProtect System from Mitek Systems Inc. in September, when First Western replaced its check imaging system.
"We were very concerned about fraud. That was the main concern of the board of directors and management," said Kerry Stone, First Western's data processing manager. Two of the bank's commercial clients had been hit by a spate of check fraud in 2002, which put the bankers in Minot on alert.
"Fraud was starting to migrate down from the big commercial banks to the smaller community banks, and that was something we were going to have to deal with," Mr. Stone in an interview.
At that point First Western was conducting manual examinations of each check written against the two customers' accounts to look for forged items. "With the naked eye, it was hard to tell the difference," Mr. Stone said.
The software from Mitek, of Poway, Calif., is a "learning system" that automatically compares checks presented for payment against a file of images that have previously cleared. The bank's policy is to do a manual review of every check above $10,000 and of suspicious items over $25.
Mr. Stone said the system typically flags 6%-10% of the 6,000 checks that the bank processes on an average day. They are examined further with the help of an interface that compares the image of a suspicious check against another check image from the customer's file.
The software can detect subtle differences in forged checks, such as variations in the checks' borders or printed features, in addition to the handwritten signatures. "Even though we weren't able to catch that, their system did," Mr. Stone said.
Mitek announced the commercial availability of the FraudProtect System on Nov. 17. James B. DeBello, Mitek's president and chief executive, said it plans to target smaller and midsize banks because larger ones have already begun using transaction-based systems. "Right now community institutions don't have a solution. They are sitting ducks waiting to get nailed," he said in an interview.
Metavante to Continue Buying?
Marshall & Ilsley Corp. has filed paperwork with the Securities and Exchange Commission that could signal that its Metavante Corp. subsidiary is considering further acquisitions.
The Milwaukee banking company said last week that it had filed an acquisition shelf registration to issue up to 6 million shares of common stock, to be used "by M&I and its subsidiaries for business acquisitions."
M&I's shares are trading in the low $40 range.
The technology subsidiary has closed or announced a series of purchases this year valued at over $1 billion.
M&I filed another shelf registration to issue up to $3 billion of debt in June, partly to finance some of those deals. In July it said it would offer up to $1 billion of securities - again to pay for Metavante's shopping spree.
Rabobank Using Siebel CRM Software
Rabobank is using customer relationship management software from Siebel Systems Inc. to keep better track of online merchant customers who accept electronic payments
Siebel, of San Mateo, Calif., announced the agreement last week. The vendor is also hosting its Siebel CRM OnDemand software for Rabobank, Holland's largest retail bank.
Michiel Helmer, Rabobank's product manager, said in a Siebel press release, "We needed a rapid, easy-to-use means of managing relationships with the thousands of retailers we are targeting."
The software acts as the backbone for MiniTix, the bank's online small-value payment service. It integrates customer information across multiple channels, facilitating the creation of customer profiles and activity tracking.
Patent for Xign Digital Signature System
Xign Corp. of Pleasanton, Calif., has been awarded a patent for its digital signature system.
The system, U.S. Patent No. 6,807,633, verifies the authenticity, integrity and security of electronic documents for business transactions, Xign announced last week.
The company says its system is browser-based and does not require the user to buy additional hardware or software for the exchange and verification of digital documents.
