Pub. 4 2015 Issue 2

l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s 12 Deb Kennedy, First National Bank and Trust, Phillipsburg, stopped to learn about CalTech from Rob Houser, Rob Schultz, and Trent Grissom Sean Rocha, FISERV, Merlin Kuder, Valley State Bank, Syracuse and Bob Hedge, FISERV, chat during the evening reception. NEW SOLUTIONS EXPLORED AT THE BANK TECHNOLOGY CONFERENCE T HE 19TH ANNUAL KBA BANK TECHNOLOGY Conference & Showcase was held in Topeka on February 10-11. For the first time in recent history there wasn’t a blizzard to contend with and one speaker even mentioned it, with a chuckle. The trade show was overflowing with 48 exhibitors and strong interest from just over 170 attendees. Top experts in their specialty delivered relevant information on current requirements as well as breaking news for the upcoming year. Lee Wetherington, ProfitStars, provided an engaging presentation on payments. Banks have benefited from the strong growth rates in debit cards usage for over a decade but heavy market penetration may show this growth to be unsustainable and plateau over the next two years. There is more opportunity than bad news for the traditional bank, however. Wetherington believes that banks should use every opportunity to tokenize payments to reduce fraud. Tokenization in the iTunes environment may steer higher usage of credit cards rather than debit transactions because that is the payment most tied to iTunes accounts. Android is getting in the market of mobile payments outside of the Google wallet platform by working with a company called Loop. Loop is a ChargeCase- gadget that works with MST (swipe technology) but also works in the EMV environment and is rumored to be released in the next generation of Samsung devices later this year. This technology will work in 90% of current point of transaction terminals and the transactions will be tokenized. Wetherington doesn’t think we’ll see any new players in the prepaid card market following the CFPB Prepaid Rule and the FDIC guidance on brokered deposits that will raise the costs of the program in an already slim margin. He also emphasized that banks need to begin looking into developing their own mobile wallet that will work with the new technology because the future of payments is more about data than the transaction. Jackson Hataway, Extreme Arts & Sciences, delivered a general session with a talk called “When Word of Mouth Means Counting Tweets: How to Become an iBank.” When technology is moving ahead at a furious rate it becomes about strategy and speed. Data driven decisions apply every day. Hataway referenced a study that demonstrated that the more digital services a customer uses, the higher their loyalty is and the more products and services they will use. He also spoke to the ability of business to react 75% faster due in part to technology and improved communications. Steve Stasiukonis, Secure Network Technologies, gave two intriguing presentations about how customer data is stolen and financial crimes within networks. The first talk was a concurrent session titled “Hacker HiJinks – Human Ways to Steal Your Bank’s and Customer’s Data,” and outlined how systems are hacked using tools and people that appear to be credible sources with specific examples and warnings. The second session titled “Malware Mules and Money” focused on the big players internationally in cybercrime and how they are getting into protected systems. Stasiukonis outlined case studies and safety tips in this vulnerable environment. Concurrent sessions filled time slots on both days of the conference with topics on “Cloud Computing” by Stephanie Chaumont, CoNetrix; a peer-group discussion facilitated by Chris Gilbert, Bankers’ Bank of Kansas; “Change Management, Keeping Up With it All” by Kenneth Friedel, American State Bancshares; “Managing a Mobile Workforce” by Mark St. Peter, Nex-Tech; and a leadership topic called “Breaking the Rules: Training for Success by Coaching Yourself Out of a Job” by Jackson Hataway, Extreme Arts & Sciences. The concurrent session titled “The State of Debit EMV” was standing room only and even that was full. Derrick Bretz, CSI, updated attendees on the changes expected in the fall of 2015 and how liability will be shifting for merchants who don’t comply by purchasing new terminals. The concurrent sessions on the second day of the conference included a session on payment fraud by Lee Wetherington; James Harris, Compliance Advisory Services provided sessions called “IT Regulatory Environment and Cyber Security Expectations” as well as “IT Risk Assessments”; “Your IT Return on Investment” by Rob Houser, CalTech; “Branch Transformation 3.0: Lessons Learned” by Malon Updike, NCR.