Credit union

Online Banking/E-Commerce

The Canadian firm Othentik Technologies announced that their online purchase and bill payment system is now available in the United States. Othentik provides a software- and host-based processing system that enables online shoppers to request a designated payment at the seller’s or biller’s website, have that request authenticated in real time by the financial institution holding the payment account, then have the FI pay the seller or biller privately and securely after the transaction has been authorized.

The company claims that this unique sequence of operations puts authentication back in the hands of the trusted financial institution, and reduces fraud, chargebacks and abandoned transactions. Othentik says that with their system, consumers are verified by their financial institutions; merchants receive reliable, guaranteed payment offline; and financial institutions regain control of online transactions, while securing a key role in a booming new market.

A new Callahan & Associates study shows that even though more than three-quarters of online credit union members also use services offered by other financial institutions, many of these members are willing to switch to similar services at their credit union.However, the service must be online and the transfer process must be quick and easy. 43% of those surveyed with accounts at other financial service provides said they’d be interested in transferring accounts to their CU as long as the products were comparable, while an additional 39% said they’d likely use an online funds transfer if it was available.

 

Credit Union tech-talk – 29 mars 2004