John Ginovsky is a contributing editor of ABA Banking Journal and editor of the publication’s TechTopics e-newsletter. For more than two decades he’s written about the commercial banking industry, specializing in its technological side and how it relates to the actual business of banking. In addition to his weekly blogs—"Making Sense of It All"—he contributes fresh, original stories to each TechTopics issue based on personal interviews or exclusive contributed pieces. He previously was senior editor for Community Banker magazine (which merged into ABA Banking Journal) and was managing editor and staff reporter for ABA’s Bankers News. Email him at email@example.com.Website URL:
Customers have embraced the use of interactive teller machines at the two busiest branches of Dollar Bank in Pittsburgh, piloted there beginning in July.
In October Microsoft unveiled its latest and, in some respects revolutionary, version of the Windows operating system, called Windows 8. The most noticeable new feature is its graphic user interface-the screen you first see when you boot it up.
Last year, in 46% of the FDIC IT examinations in which bank ratings were downgraded, inadequate vendor management was cited as a causal factor, says Donald Saxinger, senior examination specialist in FDIC's Technology Supervision Branch.
"I'm not saying it was the primal causal factor, but, in 46% of the downgrades, vendor management was cited," Saxinger says. He spoke during the recent ABA Telephone Briefing "Vendor management: Unlocking the value beyond regulatory compliance."
Saxinger says he drilled down with his colleagues to find more specific reasons this factor has emerged in troubling IT exam results.
"The No. 1 issue that a lot of examiners told me was the banks are not requesting copies of the exams of their service providers," he says. "We do examine service providers. It would be a very good monitoring and continued due diligence practice to see what the regulators are saying about your service providers."
Other related observations and suggestions gleaned from exam results include:
• Make sure to get the proper exam reports about individual vendors. Some banks just obtain reports for the host data center, but not for the specific application that the banks were using.
• Even the proper reports don't cover everything that a bank must consider in its security risk management efforts. For example, one service provider with an otherwise clean report did not have an internal audit program and its business continuity planning was poorly documented.
"When you're contracting with a vendor, you need to ask questions more than just what's in the [exam report]. What other types of audits do they have? You need a security audit. You need to comply with Gramm-Leach-Bliley. Do they have effective business continuity?" Saxinger says.
For information on obtain an audio copy and materials from the ABA telephone briefing, go to http://www.aba.com/Training/teleweb/Pages/tb103112.aspx.
ABA's new Emerging Payments Advisory Group will study and discuss the rapidly changing environment of payments and their associated technology.
ABA Banking Journal asked a number of analysts their opinions of what banks need to do to not only cope with the rapidly changing payments environment, but figure out how to best participate. Part 1 of 2 parts
Credit card fraud has not been as prevalent in the United States as it has been in Europe, and that is why the overseas nations have been quicker to adopt the EMV standard, says Karen Postma, director of client services at The Members Group.
You may not believe it or even realize it, but there is a good chance that the people responsible for maintaining your bank's electronic gadgets probably have had to send them outside the bank to third-party data recovery vendors in order to retrieve lost or corrupted data files.