January 18, 1999
First Union Chooses VASCO's Digipass Security Tokens for Secure Internet and PC Cash Management Services
Sixth Largest U.S. Bank Expects 15,000 Corporate Customers This Year for Secure Payment and Tansaction Initiation Services
OAKBROOK TERRACE, ILLINOIS AND BRUSSELS, BELGIUM --- VASCO Data Security International, Inc. (OTCBB:VDSI), a leading provider of information security solutions worldwide, announced today that First Union Corporation (NYSE: FTU), the sixth largest bank holding company in the United States, will secure its Internet and PC Global Cash Management services with VASCO Data Security's Digipass 300 authentication token.
Located in Charlotte, North Carolina, First Union's assets exceed $234 billion, and is the third largest cash management provider in the U.S. First Union chose VASCO Data Security's solution in large part due to VASCO's proven experience in secure remote banking. With more than 2.6 million of its patented Digipass tokens in use in over 130 banks and 45 countries, VASCO Data Security is the #1 provider of authentication tokens to the banking industry, and #2 for all secure remote applications worldwide.
After a thorough testing and evaluation period, First Union is now at full implementation of the Digipass 300 security solution for its information reporting and transaction initiation service, called PC InVision. Approximately 3,500 corporate customers are currently using Digipass tokens with PC InVision, with that number expected to grow rapidly to at least 15,000 in 1999 as First Union rolls out new electronic banking services. PC InVision customers can now securely conduct high-risk transactions, such as Automated Clearing House (ACH) and wire transfers, right from their computers. Because of its success using VASCO Data Security's solution, First Union will also implement Digipass 300 tokens for its rollout of WebInVision, PC InVision's Internet-based counterpart.
Randall York, Assistant Vice President for First Union, said they selected the VASCO Data Security solution over that of other leading security vendors for its affordability, ease of use, reliability, ease of management, innovative technology, and branding opportunities. As an example, First Union had wanted at least a 95% first-try success rate for customers logging in with Digipass 300's one-time password. VASCO Data Security passed that mark in the first trial, and the first-try success rate now stands at greater than 99.5%. In addition, each PC InVision and WebInVision token features the First Union National Bank logo, putting the bank's image in front of thousands of its corporate customers every day.
"Overall, VASCO Data Security's secure electronic commerce solution was a clear winner," explained York. "Their Digipass token was ideally suited for our business and technology needs. In addition, VASCO's experience providing Internet and PC-based data and transactional security to hundreds of banks showed at every step, as did their commitment to providing a solution that met the needs of First Union and our customers. When they demonstrated how we could easily manage thousands of tokens, based on their experience with other large banks that have hundreds of thousands of Digipass tokens in use, we knew we'd found our solution."
First Union Demanded Technology that Supported Strategic Business Goals
Driving the decision to go with VASCO Data Security was First Union's recognition that higher security would actually help expand market share for the bank, while building loyalty with existing and profitable customers. "Our corporate customers want convenience as much as anyone," observed York. "Once you've solved the security issue to everyone's satisfaction, you open the doors to providing a full range of services and true "anytime anywhere" banking. Our customers can make secure wire transfers and ACH transactions without leaving their desks. That's a powerful selling point for us."
Octavio Marenzi, research director for financial technology analysts Meridien Research in Newton, Massachusetts, said the marketplace is supporting First Union's approach. He noted that most financial institutions have been content to rely on more vulnerable approaches to security for electronic delivery of financial products-usually consisting of nothing more than a User ID and static password.
"Such vulnerable security does little to inspire confidence amongst either users or within the financial institution itself," he pointed out. "It has also contributed to relatively low adoption rates of Internet-based delivery of financial products. Leading organizations are going well beyond this simplistic approach to better manage the risk of fraudulent transactions using existing one-time password and digital signature technology. This not only significantly reduces risk, but also encourages customers to conduct far more of their business electronically."
What lies ahead for First Union? They are relying on SecureIT-a VeriSign company and VASCO Advantage Reseller-for onsight service and support of the Digipass 300 solution. As experts in Internet and enterprise security solutions, as well as implementing Public Key Infrastructure (PKI) technology, SecureIT is also working with First Union to develop a PKI structure that supports the bank's current and future needs. "We're pleased to be a part of the team helping First Union prosper and grow through business-focused technology," said Jay Johnson, Managing Partner of SecureIT. "We feel that all three organizations will continue to benefit from this winning relationship."
T. Kendall Hunt, Chairman and CEO of VASCO Data Security, concurred with this assessment, adding that "to me it speaks volumes that a company of First Union's stature would choose us over so many other competing companies and technologies. It reinforces the fact that our solutions fit the real-world business needs of banks today, and that we are successfully applying our expertise with European banks to the U.S. market. We look forward to a long, growing, and mutually beneficial partnership with First Union."
|
Email This Page
Printer Friendly Version
