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  1. 1. Infinity Bank Online Banking Proposal An Assignment for IST 110 Instructor: Laurie LaForest, Ph.D. Authors: The “Spruce” Team1 Nick Giacobe Chad Marcum Craig Marino Kyle Purdy Date: October 29, 2004
  2. 2. Infinity Bank Spruce Team Recommendation Table of Contents Infinity Bank........................................................................................................................1 Online Banking Proposal.....................................................................................................1 An Assignment for IST 110.................................................................................................1 Table of Contents.................................................................................................................1 Executive Summary.............................................................................................................2 Section 1 – History of Banking Information Systems.........................................................3 Section 2 – Infrastructure Analysis......................................................................................4 Section 3 – Trends and Competitor Analysis......................................................................6 Section 4 – Decision Making Process..................................................................................9 Section 5 – Legal, Ethical, Social and Global Issues.........................................................13 Section 6 – Online Banking URL......................................................................................15 Section 7 – Online Banking Division Proposal.................................................................16 Section 8 – Division Business Strategy and Income Sources............................................17 Section 9 – Approximate Budget19...................................................................................19 Section 10 – Internal Hardware and Software Requirements............................................21 Section 11 – External Hardware and Software Requirements...........................................23 Section 12 – Internal and External Information Systems Overview..................................24 Section 13 – Security Needs and Discussion.....................................................................26 ............................................................................................................................................26 Section 14 – Marketing Plan..............................................................................................27 Section 15 – Customer Support Plan.................................................................................28 Section 16 – Internal and External Training and Education Mechanisms.........................29 Section 17 – Privacy Policy and Implications...................................................................30 References..........................................................................................................................31 Appendix A – Biographical Sketches................................................................................33 Page 1 of 35 Table of Contents
  3. 3. Infinity Bank Spruce Team Recommendation Executive Summary Infinity Bank has come to another crossroads in its history with new technology. Online Banking is a common feature of almost all other banks. While there are some customers who are less technologically inclined, there are many other customers and potential customers who desire these features from Infinity. There is a clear need to move into Online Banking. In addition to customer demand, there are several other factors that drive the need to make this move. Primarily, there are significant cost savings benefits to the bank. While nothing will replace the brick and mortar community bank branches and the strong relationships that are built there, the simple truth is that it is expensive to process transactions through tellers and very inexpensive to process transactions online. If Infinity fails to adopt Online Banking, it will be difficult to remain competitive in the marketplace. The history at the bank, especially with the previously slow adoption of ATMs, clearly shows the need to move forward with this new technology or risk significant erosion of the customer base. There are many hurdles to overcome. Today, Infinity Bank does not have the existing resources in terms of personnel and equipment to develop an Online Banking system. The employees in the IT Department indicated significant concerns about the ability to maintain the existing high quality levels and security levels required to keep the bank’s information systems secure. Developing a complete, secure solution in-house would require a large division and significant investments in time, personnel and resources. In short, it would require a complete change of culture at Infinity. There are a variety of outsourcing partners available. These partners have high quality, secure service offerings that will meet the needs of Infinity. Their systems can be branded and modified to meet Infinity’s existing marketing “look and feel”. Their top quality features that match other offerings found competing banks. Some have additional features that go “above and beyond” and would make Infinity a market leader. This is all available at reasonable costs, both for initial investments and ongoing business relationships. One such outsourcing company, Digital Insight Corporation, has the right mix of features, pricing, technology and personnel that can provide Infinity Bank with the services needed to start Online Banking in a very short timeframe. We recommend partnering with Digital Insight to launch the Online Banking service. Doing so will allow Infinity Bank to keep its existing identity as a top quality, brick and mortar bank, but will add high quality Online Banking features at a reasonable cost. A small management team will run this new Online Banking Division. This new Division will have minimal negative impact on the other bank divisions, with significant positive impact on Infinity Bank’s balance sheet. Page 2 of 35 Executive Summary
  4. 4. Infinity Bank Spruce Team Recommendation Section 1 – History of Banking Information Systems In order to fully understand the need for online banking, it is important that we know its history and the track record for potential growth. Online or e-service banking began with the installment of the first off-site, cash dispensing machine. In 1969, the Chemical Bank of Queens deployed the first official automated teller machine (ATM), although this name wasn’t coined until later.2 It wasn’t long after the development of the Internet that banks began to allow limited transactions to be done by Telnet. This option allowed customers to bank through the telephone by following voice prompts and entering commands. Although this was convenient in some aspects, it was limited and time- consuming in others. In 1994, Microsoft built online banking into its Microsoft Money personal finance software. This allowed more freedom than Telnet, but only a handful of people utilized the money program. In 1992, World Bank was the first to “go online” and many banks followed with the increased use of the Internet. In 1995, the Wells Fargo Bank added account data to its website with an estimated 300,000 households using this feature to check on their accounts and make transactions. The use of online banking surpassed the one million mark in 1996, with customers of many different banks now being able to manage their accounts online. In 1998, banks began to fully utilize their online sites to allow their customers to complete credit card, loan and mortgage applications. It is estimated that in 2003 over 33 million household banked online.3 Banking Information Systems at Infinity Bank Infinity Bank implemented technology as many banks have done similarly in the last 15-20 years. A centralized computer system, with remote teller terminals is the backbone of the Bank’s information systems. Infinity deployed a robust network of circuits that connects all branches to the central mainframe in the corporate datacenter. A major investment was made in a Banking Information system on the mainframe. Software modules were created to meet each of the Division’s needs. A considerable investment in upgrades, time, resources, training and corporate culture were made in this system. In the 1980’s, when Automated Teller Machines were gaining popularity, Infinity Bank did not take advantage of this new technology as quickly as it could have. Because Infinity did not develop an appropriate sized network of ATMs, a significant number of customers left the bank. While Infinity did eventually develop a large network of ATMs, significant market share was lost.4 Today, the ATM Division of the bank is extremely profitable. It generates significant revenue from its $2.00 per cash withdrawal from non-Infinity cardholders, at our branches, and in-store ATMs. This later success should be modeled in the implementation of this proposed online banking service. Page 3 of 35 History of Banking Information Systems
  5. 5. Infinity Bank Spruce Team Recommendation Section 2 – Infrastructure Analysis Hardware and Network Infinity Bank’s infrastructure is centered around a single IBM Mainframe5, which contains all customer information, transaction data and auditing records. The mainframe is tied to several front-end database processors, which are in turn connected to multiplexors and then out to individual bank employee workstations across a dedicated, secure data network at all Infinity Bank locations. End-user terminals are mix of IBM 3151 style terminals and IBM Compatible PC’s using a terminal emulator via a terminal emulation board. For the most part, the “dumb terminals” are used in teller locations, while PC’s are used at Loan Officer and Bank Manager desks where other non-bank system software is required. The network that connects these devices is an IBM SNA network that runs across leased lines. Links are aggregated in geographic locations to combine bandwidth needs from a single geographic area. A variety of circuits from several vendors are employed, as no single vendor covers the entire geographic coverage area of the bank. The only data that traverses this network is propriety bank data. This proprietary data includes customer transaction data, confidential bank memoranda and bank-only business. Therefore, each bank region maintains commodity Internet access for non- confidential communications. Information Systems, Software and Databases Applications were developed for Infinity Bank by a variety of vendors to meet the needs of the bank to develop its account services. All databases are based on IBM’s DB2 database platform.5 The data is stored on the central IBM Mainframe, with custom applications written for the IBM VM/CMS system to meet all of the employee functional needs. There are three primary applications on the mainframe today. The first is the transaction management system that handles all transactions for consumer and business accounts. This is the core of the business of the bank and obviously requires a high level of data integrity. The second application is the back-end system for bank auditing and functions. This system provides central management the tools that it needs for bank financial decision making. The third system is the sales and marketing system. It provides all of the information required for the sales and marketing functions of Banks Advisors, Mortgage, Secured Finance and Real Estate Finance divisions. This includes customer credit validation, sales tools, and account initiation functions. Page 4 of 35 Infrastructure Analysis
  6. 6. Infinity Bank Spruce Team Recommendation Web Services The bank maintains an IBM RS/6000 web server to provide information, but not interactivity. For end-user customers, there is information about the various products of the bank. Account descriptions guide end users to selecting the correct type of account that meets their needs. There is a Branch Locator that helps customers find any of our branches with minimal effort. An ATM locator assists our customers locate Infinity Bank ATMs. The website also provides daily updates to loan rates for the Mortgage division, as well as the Secured Finance and Real Estate Finance divisions. For security reasons, the web server is not directly connected to any internal bank information systems.5 It is believed by bank network security personnel that connecting the web server to other internal systems would allow a pathway for a hacker to gain access to the internal systems. The complete physical separation of the two networks provides for complete network security. In fin ity B a n k - E x is tin g In fr a s tr u c tu r e P r im a r y D a t a c e n te r - A tla n ta , G A C o m p u te r w / T e rm . C a rd T e r m in a l N o te : N o t c o n n e c te d to in te r n a l n e tw o rk P u b lic C o m p u te r w / T e rm . C a rd In te rn e t T e r m in a l M a in f r a m e W e b S e rv e r IB M R S -6 0 0 0 C o m p u te r w / T e rm . C a rd T e r m in a l D a ta b a s e F ro n te n d S e rv e rs C o m p u te r w / T e rm . C a rd T e r m in a l C e n tra l R e p r e s e n ta tiv e B r a n c h O f fic e N e tw o rk R o u tin g R o u te r R e p r e s e n t a t iv e G e o g r a p h ic ircuit D iv is io n S u b - N e t w o r k bps Telco C 1. 1.544 M 54 R o u te r 1.544 Mbps Telco Circuit 4 M bp s T e lle r SM DS Ci B r a n c h L o c a tio n rc P r in te r uit R e g io n a l SM DS R in g T e lle r T e lle r cuit M a n a g e r / L o a n O fc S Cir SMD 56k B r a n c h L o c a tio n B r a n c h L o c a tio n 56-2 B r a n c h L o c a tio n B r a n c h L o c a tio n B r a n c h L o c a t io n D ir e c t ly C o n n e c t e d B r a n c h e s a n d G e o g r a p h ic D iv is io n s Page 5 of 35 Infrastructure Analysis
  7. 7. Infinity Bank Spruce Team Recommendation Section 3 – Trends and Competitor Analysis Competitors Bank of America6 • View your personal and business accounts with one access ID. • Pay and receive your bills online. • Check balances in your checking, savings, money market savings, CD and IRA accounts. • Transfer funds between your accounts. • View transactions the same day you make them. • Check outstanding balances on some loans and lines of credit or Bank of America credit cards. • View transactions that have cleared your checking, savings and personal credit card accounts. • Download account information into financial management software. • Reorder checks and request check or statement copies. Bank of America offers these services free of charge Citibank7 • Free online money transfers • Schedule checks up too one year in advance • Free online bill payment • View all checks • Fraud protection • Customer service 24/7 Citibank offers free online transactions Paying bills thru Telnet (by phone) $4.95/month Sovereign Bank8 • Free Bill pay • Numerous checking options • Free use of other ATMs • Free application processing Sovereign Bank offers net banking free of charge Market Trends, Future Trends Globalization The future of online banking sees an increase of nearly 35% in the following years.9 Although the numbers are increasing, this does not mean that the need for the traditional brick bank is decreasing. Online banking can only add to Infinity’s already outstanding financial services. Adding this feature to our service will allow the bank to sidestep the drop in customer base that was experienced with the late implementation of the ATM. It Page 6 of 35 Trends and Competitor Analysis
  8. 8. Infinity Bank Spruce Team Recommendation is clear that other banks have already started to implement this feature and already Infinity is slipping behind. There is much room for future growth, not only in the regional area but also worldwide. Online banking allows Infinity to invest in multiple countries which, as up to this point, we have been unable to do. This is an opportunity for the bank to expand into a market that, before online banking, was not an option. Infinity is in the position to be in command of not only a good portion of the traditional style of banking, but also to be an important competitor in the e-banking. One way to do this is the possibility of a global card. A global card is a card that allows an Infinity client to bank anywhere in the world no matter which bank, without fees or surcharges. This is an exciting option to companies that travel overseas and an excellent way to generate more large company business. Although Infinity has many global options, allowing our regional customers the chance to bank home or at a local branch enhances our diligence to customer satisfaction. While the market is open for us to influence, we must stay dependable to our established customers. I believe the customer reactions sections will give more insight into how Infinity can grow globally and still be strong regionally. Customer Requirements Customers want the convenience that online banking offers. Infinity’s online site never closes, with the exception of scheduled maintenance, giving our customers the ability to bank 24/7. In today’s busy world customers take solace in knowing they can bank when they have time. When the holidays come around, it is comforting to know that they can bank late in the evening on Christmas Eve even though the local branch office is closed. Our customers want to know that they will be able to complete several banking needs even if they are not at home. Vacations are supposed to be a time of relaxation, not a time to wonder if they made that bill payment. With the availability of Infinity’s online banking our customers can bank whether they are out of town, out of state or out of the country, just by accessing the banks web site. Infinity’s members are worried that forging into the online process would just be another set of records to keep, thereby causing more confusion. However, there will be no more confusion with multiple bank records. We will make everything accessible from one secure location. With printable receipts and statements, a customer will have everything readily available. Infinity’s site will offer help for many different tasks. Help with checkbook balancing, calculators; stock quotes, etc. will be an important part of the online process. Infinity’s site will also be compatible with other programs available to the customer, such as Microsoft Money and help is just a click away. One of the most important issues the customer faces is the issue of security. Although confidence in the process is steadily growing, many are still fearful. With fixes to email Page 7 of 35 Trends and Competitor Analysis
  9. 9. Infinity Bank Spruce Team Recommendation security and alert services, along with firewall type enhancements the trust in the market is solidly raising. The financial industry is consistently working on concerns the customer has and will continue to see a dramatic increase of online self-service. Page 8 of 35 Trends and Competitor Analysis
  10. 10. Infinity Bank Spruce Team Recommendation Section 4 – Decision Making Process Infinity Bank and Online Services Decision Criteria In approaching the in-house vs. outsourcing issue, it is vital to detail the criteria by which a decision will be made. In using the team decision approach, the five criteria used will be defined as: (in ascending order of importance) 1. Start Up and Maintenance- the amount of time and physical resources needed to initiate the new online division; 2. Customer Service- the act of providing customers assistance in using the features of the web site as well as being a point of contact for technical issues; 3. Financial- the initial amount of expenditure and the monthly expense it will be for Infinity Bank to offer its customers this online option; 4. Security- the ability to guarantee the safety of online transactions- mainly protecting sensitive personal financial information; 5. Usability – the ability for a customer to effectively interface with the online application and complete desired tasks. In determining the major decision of the project, this team has decided upon the outsourcing option. The project team has chosen Digital Insight Corporation, Calabasas, CA (referred to herein as Digital Insight or DI) to be the outsourcing company in charge of creating and maintaining the new web site. Digital Insight has proven itself to be leader in the online financial world and offers internet-based financial products that will effectively service Infinity Bank customers. The outsourcing decision will bring some employee and property changes to Infinity Bank, but overall the existing structures will remain in place. In terms of direction for the new online division, Jonathan Roberts, Executive VP and Director of Technology Research, will assume responsibility for the new division. In addition, four new full-time employees will be added to the division. One full-time employee will be responsible for managing the contract with Digital Insight. A second employee will be assigned to be the technical liaison between Infinity Bank and Digital Insight. A third employee will head up the marketing efforts. The final employee of the division will handle the business operations of the division and its relationships with the other Infinity Divisions. Customer Service employees will not need to be added since the contract with DI will include first tier customer service. Overall staffing can be re-examined once the full extents of the duties of the online division are apparent. In terms of the physical properties, outsourcing this project will lessen the immediate need for expansion. Customer service call centers will remain in current locations and the IT infrastructure may require small amounts of additional workspace to build and maintain the information Page 9 of 35 Decision Making Process
  11. 11. Infinity Bank Spruce Team Recommendation network. Local branches will be unaffected by the changes, as most of the detailed changes will occur at corporate offices only. Estimate of Internal and External Resources With the world adapting to the digital society, more and more banks are establishing online divisions. In order for Infinity bank to remain a financial powerhouse, they will need to capitalize on the global digitalization trend. The following is an approximate budget to implement such a process. The total one-time start-up charge is $46,900.00. The total monthly management fee would then be $44,900.00. This amount equates to $785,700 for the first year, then $738,800 each year after. This equates to a very small fraction of Infinity’s total assets, but will save Infinity money in the future via electronic transactions versus manual. Web Banking Features10 • Full Service Transactional Banking • Clear relation of primary to secondary sections • Quick access to key account data • Support for Joint Accounts • Support for Loan Accounts • Account Aggregation • Provides seamless downloads into Quicken®, QuickBooks, and Microsoft® Money • Check Reorder • Product Support – Online and through 24x7 Toll Free Phone Call • Email Alerts and Reminders • Wireless Banking – PDA’s, Wireless Phones and Pages • Multi Language – Including fully functional Spanish version for our Hispanic customers Customer, Employee and Investor Reactions While the use online banking still continues to grow, Infinity has received many different reactions. Our customer is, of course, our main projective yet we still need to take into consideration the feedback that will come from our investors and employees. There are still many concerns that need to be addressed and we want to be sure we cover all possible aspects. We conducted surveys among several groups, to allow us to better gauge the overall position in the industry. Our first interview was conducted among established customers. We wanted to know if home banking would enhance their banking experience or if it would not really affect them at all. While there we numerous members who enjoy and trust the traditional way of banking there were instances where they could definitely foresee utilizing this feature. Overall the customer’s reaction, while apprehensive, was one of eagerness. 11 Page 10 of 35 Decision Making Process
  12. 12. Infinity Bank Spruce Team Recommendation Our employee’s reaction was a little different. While there was a little excitement on the implementation of a new system, there was a little skepticism on the ability of Infinity and its employees to handle the extra work load. Many were also afraid that online banking would decrease the need for tellers and other customer related position. In today’s market, this is a very real issue, although Infinity is a strong company we are always looking for ways to cut down on overhead. It seems that the reaction of the employees is a hesitant one, yet they know that pc banking will also be the next logical step for Infinity to take.12 The investors take a little different position on online banking. Why change things when they are going well. It is the old adage“If it ain’t broke, don’t fix it!” type of feeling. What the research has done is prove that many other financial institutions have executed online banking and it has shown real development for the company. The investors are unconvinced at this time that online banking would be the direction to take, but I believe the research that the project team has pulled together will ease any fears they may have. (Research transcripts included in appendix) Reflection on the Team Process In returning to the criteria we have used to make this decision, it is now apparent how the on-line decision was made. Here is a breakdown by each of the criteria: 1. Start-Up and Maintenance: This issue favors an outsourcing situation mainly because DI has the ability to quickly integrate Infinity Bank requirements with an existing proven model to create an online application. DI will be responsible for upgrading their systems to provide online banking services to our customers. 2. Customer Service: This option could fall in the middle of the two scenarios. But, with DI offering first tier customer support in the contract, the advantage again goes to the outsourcing option. The centralized tech support will be available in a variety of forms, such as: online chat, email, online help forums, as well as phone support. 3. Financial: The outsourcing company has a distinct advantage in two different areas. First, constructing a web site using DI will allow us to have a functional web site in the matter of 30-40 days with a small down payment. In addition, Infinity Bank would not need to make the substantial initial investment in the new hardware that would be required for an online application. There will also be a savings in that only a few new employees will be needed and physical properties will remain virtually unchanged. An in-house situation would warrant a large-scale hiring and would require a substantial amount of space for the endeavor. 4. Security: DI has a proven track record in terms of providing superior security for its customers. As an authority in the field, they are highly qualified to identify new trends and deliver new approaches in the field. Infinity Bank will Page 11 of 35 Decision Making Process
  13. 13. Infinity Bank Spruce Team Recommendation also be able to better to safeguard its own systems against attack by having a separation from its online divisions. 5. Usability: The most important of the criteria- without an effective and easy- to-use application this endeavor will never get off the ground. Infinity Bank will have the opportunity to take advantage of DI’s expertise in the field and create a web site based on proven models in the market. In addition, with the outsourcing company, Infinity Bank is able to offer a wider range of services than it would be able to on its own. The bill payment and check presentment features are important to our customers and would be very difficult to offer as an in-house situation. Page 12 of 35 Decision Making Process
  14. 14. Infinity Bank Spruce Team Recommendation Section 5 – Legal, Ethical, Social and Global Issues Ethical and Social Issues In order for Infinity Bank to continue in its southern tradition and respect, it is imperative that the foundation of the new online division is firmly established in an ethical corporate environment. Current employee training will be continue to include discussion of the development of Infinity Bank’s code of ethics and applications to real work situations. All Infinity Bank employees will be held to these high standards and all employees will be empowered to guarantee that these policies are followed in every division of Infinity Bank. An initial topic that arises from the online division is the responsibilities of Infinity Bank with its customer database. Will Infinity Bank choose to sell customer information to an outside marketing company? In the tradition of putting its customers first, Infinity Bank cannot engage in this practice. In examining this scenario using the utilitarian ethical principle, the good (financial gain for the bank) does not outweigh the harm (customer information used to send spam, mass mailings, or telephone marketers). In this instance, there is virtually no benefit for the customer.13 The primary ethical issue will be the managing of sensitive customer financial information. As with normal bank operations, this situation always invokes the question of abuse. Unfortunately, even will all security measures in place, an employee could access this information and use it for personal gain. These situations fall under the professional ethics principle.13 In no way can these actions be accepted by the rest of the organization, and these situations will be dealt with swiftly and fairly. In addition, this problem can be extended once further to include employees of the outsourcing company coming into contact with proprietary information. These outsourcing company employees will be bound by the regulations stipulated in the contract. This ethical issue also has a relationship with the social issue of diffusion of responsibility.14 In this case, employees from the outsourcing company believe that they a few levels removed from that individual bank customer, and to steal personal information would be easier and the threat of retribution would be diminished. Again, this situation would be dealt with in the same manner with the assistance of the outsourcing company. Legal and Regulatory Issues Legal and regulatory issues initiated by the development of this new online division are very similar to that of a brick-and- mortar bank. In a regulatory sense, the online division must adhere to FDIC regulations to be eligible to offer its customer an FDIC- insured account. Also, the division is still under the watchful eye of the treasury department. In terms of legal issues, many involve the bank’s liability to its customers in the event of a security breach. For example, online systems are constantly threatened by hijack attempts to steal customer information either directly (by attempts to break into a financial system) or indirectly (by use of fraudulous emails or hijacked websites).15 In this event, Infinity Page 13 of 35 Legal, Ethical, Social and Global Issues
  15. 15. Infinity Bank Spruce Team Recommendation Bank will launch a full-scale investigation with the help of the outsourcing company and the authorities. Anyone involved in these illegal actions will be prosecuted to the fullest extent of the law. Unfortunately, this may not resolve the liability issue, whether the bank or outsourcing company would be found liable in its practices. But, every attempt will be made to incorporate these events in defending the online systems from future attacks. Associated with this security breach, is the legal issue of burden of proof. With a normal bank, it is customary that the customer is not liable in the event that an error has been made by the staff of the bank, or a computer crime is enacted that is not identified and stopped by the bank’s security system.16 However, in the instance when the customer uses security codes, the situation is a little muddled. If a customer has their security code stolen, and this is used to make transactions, the burden of proof falls to the customer and the bank will not cover the losses.16 Customers then become fully liable for any fraudulent transactions that may take place before they figure out that their security codes have been stolen. Additionally, the customer would then have to prove to the bank that they have taken every precaution to protect their passwords on their home PCs. Another wrinkle to this situation involves the period of time it takes for the customer to inform the bank. Obviously the customer doesn’t know about the fraudulent use of their account, but the transactions that occur before the situation is reported are usually the customer’s responsibility. This situation can destroy a bank-customer relationship in the process. Infinity Bank realizes that these types of situations can happen in the online world, as well as in the normal markets. Again, with Infinity Bank using DI to handle its online application, we are confident that DI’s expertise in the field will allow us to stay on the leading edge of security initiatives in the online world. Global Issues On a more positive note, the foray into the online banking will open a world of new opportunities. Infinity Bank will now be able to function as a 24-hours a day, seven days a week worldwide entity. Customers will be able to access financial services, such as bill pay and check presentment, from anywhere at anytime. These services will prove Infinity Bank as an effective resource for its customers. In addition, the scope of service extends Infinity Bank beyond the limitations of physical locations, and allows the bank to compete in a global financial market. The prospects for growth are limitless. Infinity Bank will be able to compete for customers outside its normal markets, both for individual customers and business accounts. This exciting endeavor will prove to be a milestone for the boundless future of Infinity Bank. The issue that presents itself with all of this growth is over expansion. How can Infinity Bank retain its image as a hometown bank? The best solution is to maintain superior customer service, and to make every encounter as comfortable as a face-to-face interaction. The ability to create and maintain positive relationships will allow Infinity Bank to grow its online business and extend itself further into new markets. Page 14 of 35 Legal, Ethical, Social and Global Issues
  16. 16. Infinity Bank Spruce Team Recommendation Section 6 – Online Banking URL The URL (Uniform Resource Locator) is the address that customers enter into their web browsers to access the bank’s online banking system. Selection of the URL is extremely important since this is the bank’s virtual address on the Internet. The address should be selected carefully, such that customers can easily remember it. They should not be required to remember a convoluted string of “backslashes”, “dashes” and cryptic extensions (.cgi, etc.) A .com address is preferred and recommended. Infinity Bank URLs The online banking interface should exist on its own address at: The bank currently operates its existing website at Of course, links on the existing website should point to the online banking site. A standard forwarder from to the online banking site should be created to meet this need. Outsourced Vendor URLs and Forwarders The relationship with the selected outsourced vendor may require a non-preferred address for actual customer access and login. Techniques in DNS (Domain Name Service) should be implemented to reduce and eliminate the customers’ need to memorize complicated URLs. For instance, if the online banking partner needs to have end-user customers log into an address like: Then, this URL should never be referenced directly. Instead DNS records should be created such that any end customer who points their browser to the address would be forwarded automatically. Address for Correspondence and Marketing All correspondence from Infinity Bank to its customers should use the URLs outlined in the “Infinity Bank URLs” section, and should never reference the Outsourced Vendor URLs. Page 15 of 35 Online Banking URL
  17. 17. Infinity Bank Spruce Team Recommendation Section 7 – Online Banking Division Proposal We have decided to use Digital Insight as Infinity Bank’s premier outsourcing company. Digital Insight is recognized as a leading provider of full-service Internet banking solutions, thus a leader in the outsourcing industry. The following statements were taken from highly respected financial experts: • states, “Digital Insight provides Internet banking services to credit unions, banks and savings and loans. Services include online banking, bill payment, cash management, target marketing and eCommerce portal capabilities. For the 6 months ended 6/30/04, revenues rose 27% to $92.5M. Net income rose 36% to $8.7M. Results reflect sales from newly acquired Magnet Communications Inc., increased number of active Internet banking end users and higher gross margins.”17 • Digital Insight describes itself in its investor documents as, “Digital Insight Corporation is the preferred eFinance enabler for visionary financial institutions. Through its comprehensive portfolio of outsourced, Internet-based financial products and services built upon the company's unique architecture, Digital Insight moves banks and credit unions Beyond Internet Banking to become the trusted transaction hub for their retail and commercial customers. Exclusively endorsed by the American Bankers Association (ABA), and currently serving more than 1,500 financial institution clients nationwide, Digital Insight provides retail and commercial Internet banking, electronic bill payment and presentment, eCommerce portal technology, wireless channel delivery, advanced targeted marketing, website development and maintenance, as well as online and call center lending services. Each Digital Insight product and service reinforces the brands of its client financial institutions.”18 Infinity will also employee 4 full time employees. We will need 1 FTE to manage the Digital Insight contract, 1 FTE to lead the marketing division, 1 FTE to manage the IT/Technical division, and 1 FTE to lead the Business Development division. Page 16 of 35 Online Banking Division Proposal
  18. 18. Infinity Bank Spruce Team Recommendation Section 8 – Division Business Strategy and Income Sources Services Offered Online Full Service transactional banking will be offered with this system. Customers will be able to inquire on balances, pay bills online directly to their individual vendors. They will be able to transfer funds between accounts. They will be able to open and close accounts, but the final decisions for opening and closing accounts will remain with the employees of the bank during the next business day. The web system will have a clear navigation will display a clear relationship of primary and secondary sections. End users will enjoy quick access to key account data, such as balances, last date of withdrawal, last deposit, and other key information. Support for Joint Accounts is made through a special Joint Account section. This allows for a husband and wife to have individual logins, but still have full access to account features as if they were the sole account holder. Other banking systems require the account remain in only one or the other user name space. Support for loans includes past history inquiry, future date payoff, today’s payoff amount and other key information. When paying from other account, the customer may identify if the payment is a regular payment, advance regular payment, interest-only payment or principle-only payment. The system provides seamless downloads into Quicken®, QuickBooks, and Microsoft® Money, allowing end-users to quickly input their transaction information into their favorite personal accounting software programs. Product Support is available online and through a toll free phone call. The support center is staffed 24x7, by eight Digital Insight employees dedicated to supporting Infinity Bank’s customers. When an end-user calls the support number, they are greeted with an Infinity Bank telephone greeting, and for all intensive purposes, they are dealing directly with an Infinity Bank employee. Wireless Banking is supported through standards-compliant PDA’s, wireless phones and pagers. Many of these devices support an Internet connection and a web browser, the minimum standards for connecting to the system. Digital Insight has developed a special version of their interface for these compact devices, and provides that to alternate interface to Infinity Bank. The online application is multi-language capable, including fully functional Spanish version for our Hispanic customers.10 Page 17 of 35 Division Business Strategy and Income Sources
  19. 19. Infinity Bank Spruce Team Recommendation Becoming a Market Leader Integrating e-banking into Infinity’s business will allow us to offer our customers features that they desire. With the appropriate marketing, Infinity will have the opportunity to present customers and potential customers with a viable option to the customary way of banking. Giving communities alternative ways to bank will give Infinity the tools that people desire when they choose a bank. The banking industry has an existing set of standard service offerings in Online Banking. By implementing this proposal, Infinity will have joined the current age of Banking. However, there are two significant features that will be implemented with this proposal that are not universally available through other banks. Those features are Spanish Language versions of the online banking interface, and portable Internet device access to the online banking interface. These two features will distinguish Infinity Bank from its other competitors online. Revenue In the past segmenting online banking into Infinity’s business plan was not worth the expense. But since the growth in the confidence of online transactions two-thirds of the country is online and one half of these customers bank online.3 The possibility for revenue growth by implementing this useful tool is on the front lines of the financial industry. While its true tangible benefits of internet banking, for the most part, are long term, with such increase in online use the results are seen more quickly. Online banking is an investment into the future of e-commerce and the trust that the customer has in the process. According to the research, completed by Celents: Customer retention and cost savings drive online bank, October 1997, a bank with 50,000 members, that offer bill paying, account transactions and loan applications, will pay approximately $4.65 per customer. Over a five year period, this institution will see a net profit value (NPV) of nearly $230,000.3 Using this model, and 20% utilization of the online banking features by the existing 2.7 million customers, Infinity Bank should realize a $2.48M NPV. Infinity also has the option of achieve greater increase in profit by offering different levels of online transaction processing, with different chargeable fees. For instance, 1st Source Bank of South Bend, IN, offers three different banking choices with three different payment availabilities. This, along with increased productivity, produces Infinity with many different avenues to explore that will aide in recovering any investment made by the bank. Page 18 of 35 Division Business Strategy and Income Sources
  20. 20. Infinity Bank Spruce Team Recommendation Section 9 – Approximate Budget19 One-Time Charges Internet Banking Package Set-Up Fee $8,000.00 Customer Service Center Set-Up Fee $1,500.00 Bill Payment/Presentment Set-Up Fee $8,500.00 Cash Management Set-Up Fee $8,500.00 Host Connectivity & Interface Charge Set-Up Fee - Multi-Batch $2,500.00 Home Banking & Bill Payment Certification Training $2,400.00 Web Service (10 Pages) $7,000.00 Cash Management Certification Training $1,500.00 Total Digital Insight One-Time Charges $39,900.00 Other One-Time Charges Intercept Interface Fee $2,500.00 Travel, Meals, etc. - 2 people / 2 trips $4,500.00 Total Other One-Time Charges $7,000.00 Total One-Time & Other Charges $46,900.00 Recurring Fees Internet Banking $2,479.50 Monthly Bill Payment Fee $2,125.50 Monthly Call Center Fee $24,000.00 Monthly Cash Management Fee $7,876.80 Cash Management Wire Charges $1,392.00 Cash Management ACH Charges $36.75 Monthly Host Connectivity & Interface Charge - Multi-Batch (3/day) $3,600.00 Monthly Web Hosting Fees $2,400.00 Total D.I. Estimated Monthly Fees $43,910.55 Verisign Domain Security Key $1,000.00 Grand Total Annualized Monthly Fees & ALFs $44,910.55 Full Time Employee Salaries (Fully loaded w /benefits) Contract Manager $120,000.00 Marketing Division Leader $120,000.00 IT Division Leader $100,000.00 Business Development Leader $150,000.00 Grand Total for Infinity FTE's $490,000.00 Page 19 of 35 Approximate Budget
  21. 21. Infinity Bank Spruce Team Recommendation Marketing Budget, Annual Media Method Cost per Quarter Cost Per Year Segments Metro Areas per State States Subtotal Radio 1500 6000 4 4 6 $ 576,000.00 Cost per Ad Ads per Year Cost per year Papers per State States Subtotal Newspaper 200 26 5200 16 6 $ 499,200.00 Cost per insert Customers Inserts per year Subtotal Direct Mail, Statement Insert 0.1 2,700,000.00 4 $ 1,080,000.00 Grand Total $ 2,155,200.00 Annual Total Costs Year 1 Initial Startup Costs $ 46,900.00 Annual Recurring Costs $ 44,910.55 Marketing $ 2,155,200.00 FTE Salaries, Benefits $ 490,000.00 Year 1 Total $ 2,737,010.55 Cost per Customer, per year* $ 5.07 Years 2, onward Annual Recurring Costs $ 44,910.55 Marketing $ 2,155,200.00 FTE Salaries, Benefits $ 490,000.00 Years 2, onward Total $ 2,690,110.55 Cost per Customer, per year* $ 4.98 * based on 20% utilization Page 20 of 35 Approximate Budget
  22. 22. Infinity Bank Spruce Team Recommendation Section 10 – Internal Hardware and Software Requirements The existing Infinity Bank mainframe and database front-ends will remain in service for Branch computer operations. Nothing will change for the day-to-day operation of the bank and the tasks of the employees. Therefore, there are no changes anticipated for the hardware at the branches, aggregation centers or network. A physical connection to the Internet will be implemented, and a virtual private network (VPN) will be built between Infinity Bank and Digital Insight. A connection will be made between Infinity Bank’s IBM Mainframe and the online banking company’s network. This interface will use one of the existing database servers and will be connected via an existing, unused 100BaseTX interface. TCP/IP will be used for a connection protocol. While this interface is using TCP/IP, it will be configured to not communicate with the outside Internet. Instead, it will be connected to the outsourced online banking company’s network. A Cisco PIX515 firewall will protect Infinity Bank’s systems from unauthorized access across this private network connection. In fin ity B a n k - O n lin e B a n k in g P r o p o s e d A r c h ite c tu r e C u s to m e r C u s to m e r C u s to m e r F ir e w a ll a n d C u s to m e r A c c e s s R o u te r F ir e w a ll a n d C u s to m e r A c c e s s R o u te r F ir e w a ll a n d Multiple A c c e s s R o u te r ent Independ uits Inte rnet Circ P u b lic In te rn e t ernet Circuit Existing Int R e d u d u n d a n t W e b S e rv e rs W e b S e rv e r IB M R S -6 0 0 0 C is c o P I X 5 1 5 F ir e w a ll a n d L o c a l N e tw o rk P r im a r y D a t a c e n t e r - F ir e w a ll a n d V P N A g g re g a to r A tla n ta , G A V P N E n d p o in t S e c u re V P N T h ro u g h In te rn e t B a c k -e n d D a ta b a s e S e rv e rs M a in f r a m e D ig ita l In s ig h t N e tw o r k T o p o lo g y D a ta b a s e F ro n te n d S e rv e rs I n f in it y B a n k N e t w o r k Page 21 of 35 Internal Hardware and Software Requirements
  23. 23. Infinity Bank Spruce Team Recommendation Transaction and Inquiry Applications To the existing mainframe, transactions entered though the web will appear just like they do as if they were entered from an existing terminal at a branch location. If a deposit or withdrawal is made, the same functions happen on the mainframe as if those transactions were made by a teller. A balance inquiry or inquiry on a specific transaction or transaction range also appear as they do from the branches today. Page 22 of 35 Internal Hardware and Software Requirements
  24. 24. Infinity Bank Spruce Team Recommendation Section 11 – External Hardware and Software Requirements The end-user will interact with the custom web applications developed by the outsourced online banking company. The applications are written to be platform independent using the Java programming language. That means that the end-user/customer can use any currently-shipping, commercially available computer: • IBM Compatible • Apple Macintosh • Unix/Linux The computer will need access to the Internet via a dial-up or broadband ISP. The bandwidth required will be minimal, as the majority of the processing will happen on the outsourced online banking vendor’s computers. Only screen refreshes and updates will be passing over the customer’s Internet connection. A dial-up connection at 33.6 kbps is more than sufficient. The end-user customer will also need an SSL compliant World Wide Web browser. SSL is Secure Sockets Layer, which allows for the data between the outsourced online banking company web server and the end-user/customer browser to be encrypted during transmission. This prevents unscrupulous ISP employees from snooping on the banking transactions of our customers. Compliant browsers are free to end users, are usually installed as part of a new computer system and include the following: • Microsoft Internet Explorer • Netscape Navigator • Safari The outsourced online banking company will provide the end user with download and installation instructions, as well as 1st level Infinity Bank branded telephone-based technical support. End-User/Customer Task Software The end-user or customer will interact with the online banking interface via a customized and Infinity Bank branded web application. The look-and-feel of this application will be developed with employees of the bank’s marketing division. This will ensure that the online banking division is fully integrated into the bank’s existing message, color scheme and corporate identity. The software will run on the outsourced company’s computer systems and is part of the package that will be purchased. Infinity Bank will have some say as to how the pages are designed and how they operate. Page 23 of 35 External Hardware and Software Requirements
  25. 25. Infinity Bank Spruce Team Recommendation Section 12 – Internal and External Information Systems Overview Internal Information Systems Existing Banking Information System • Existing Hardware • Existing Software • Existing Personnel • Existing Data • Existing Business Relationships New Online Banking Interface Hardware: o New Physical Connection to Online Banking Information System o New Internet Circuit • Firewall • VPN o New Interface into existing Database Frontend Software: o Software Modification to Existing Database Frontend to allow for Online Batch Transactions o Software Modification to indicate new Source Code for Online Transactions in existing transaction databases (similar to ATM transaction or Wire Transfer, etc) Data: o Transaction Batches o Customer Data Updates Policies / Processes: o Data import – batch transactions 3x per day from DI o Online Banking Audit process o New Customer Service Escalation Process – customer support escalation from DI’s first level customer support to Infinity internal customer support o New Outside Vendor contract maintenance process – including tech support to us from DI o New Privacy Policy o Other Policies as needed People: o Online Banking Division Employees o IT Operations Employees Page 24 of 35 Internal and External Information Systems Overview
  26. 26. Infinity Bank Spruce Team Recommendation External Information Systems Online Banking System Hardware o DI’s web servers o DI’s back-end database servers o DI’s Internet connections o DI’s Firewalls Software o DI’s End-user Software applications o DI’s back end connection software Data o Transaction data o Infinity Customer data at DI o Transaction life and audit process Policies / Processes o Privacy Policy o DI Employee Confidentiality Policy o Customer Service Process and Escalation Procedures o People o DI’s operations staff o DI’s outsourced 1st level technical support o DI’s business relationship manager(s) Existing Infinity Bank Website Hardware o Existing RS4000 o Existing Internet connection Software o Existing Webserver o Existing website design Data o Existing web pages o New web pages to describe new service availability o New Forwarders to online banking website at online banking outsource company Personnel o Existing Webmaster Page 25 of 35 Internal and External Information Systems Overview
  27. 27. Infinity Bank Spruce Team Recommendation Section 13 – Security Needs and Discussion Ensuring the Security of Customer Data As in all internet transactions, the issue of security plays a crucial role in the world of online banking. In “Computer Crime and Security Survey”, results detailed: outside penetrations are on the increase, 55% report unauthorized access by employees, 57% report the internet connection was attacked, and 26% report theft of proprietary information.20 Infinity Bank realizes that it must address the security issues of its customers. Although security responsibilities will largely fall with the outsourcing company, the project team has identified several general industry standard security devices. Physical security will be addressed by the already existing measures at the bank (i.e.- limiting access via door locks, alarm systems, etc.). In addition, strategies to limit computer access to duties essential for job performance are already in place at Infinity Bank. Logical security measures should include encryption to ensure transaction privacy. Access controls, such as perimeter and internal firewalls must be in place. Addition al measures should include: screening and filtering routers, intrusion detectors, strict authentication, virus protection, and application security. In application security, common devices include double-blind systems for issuing PINs, user lockout after several failed attempts, and additional encryption of sensitive user info.20 Along with these measures, there are a few other practices that will work to ensure system security. First, an outsourcing company should use an outside auditing company to monitor and measure their procedures. Second, an outside vendor can be used to monitor network vulnerabilities. Lastly, a disaster recovery system should be in place. Infinity Bank realizes that addressing customer security issues is a chief concern, and a security policy and measures will be posted on the website. In fin ity B a n k - O n lin e B a n k in g P r o p o s e d A r c h ite c tu r e S e c u r it y fe a t u r e s o u t lin e d in R e d C u s to m e r C u s to m e r C u s to m e r F ire w a ll a n d C u s to m e r A c c e s s R o u te r F ire w a ll a n d C u s to m e r A c c e s s R o u te r F ire w a ll a n d Multiple A c c e s s R o u te r de nt Indep en Circuits P u b lic Internet In te rn e t rnet Circuit Existing Inte R e d u d u n d a n t W e b S e rv e rs W e b S e rv e r IB M R S -6 0 0 0 C is c o P IX 5 1 5 F ir e w a ll a n d L o c a l N e tw o rk P r im a r y D a t a c e n t e r - F ir e w a ll a n d V P N A g g re g a to r A tla n ta , G A V P N E n d p o in t S e c u re V P N T h ro u g h In te rn e t B a c k -e n d D a ta b a s e S e rve rs M a in fra m e D ig it a l I n s ig h t N e t w o r k T o p o lo g y D a ta b a s e F ro n te n d S e rv e rs I n f in it y B a n k N e t w o r k Page 26 of 35 Security Needs Discussion
  28. 28. Infinity Bank Spruce Team Recommendation Section 14 – Marketing Plan One of the appealing aspects of online banking is the ability to acquire new customers. With the expected growth in this market projected to be prominent, now is the ideal time to create a better banking experience for both Infinity and its members. In order to create an attractive option for potential members, Infinity needs to aggressively campaign the new online banking feature. This can be done through many different medias, including electronic (website ads), print (newspaper, flyers etc.) and broadcast(radio & television). Surveys have suggested that the public is waiting for the financial institution to catch up with the technology that is available. This makes the market a viable investment. Radio advertisement is one area where we have the ability to reach a large portion of the community at a low cost. A local radio advertisement has an estimated cost of $1,500.00 per 13 week cycle or $6,000 for the year. With this we have the chance to provide both members and non members with valuable information concerning online banking.21 Another option of broadcast marketing is television advertisements Local television ads allow us to reach a larger number of people than radio. Although radio is the most widely used broadcast media, it is restricted to certain listening groups. Initiating a television campaign that will appeal to many different people allows us to present our newest initiative to many more people. The cost to run an advertisement depends on the time of day. The general rule for the cost is $5.00 per every thousand people reached, so to reach 10,000 people late at night or during the day would cost about $50.00-$60.00. This allows us room to negotiate for the best times to run the ads and is a very cost-efficient way to market online banking.9 Print media is also a very effective way to reach not only non members of Infinity bank, but also those who are currently using us to bank. Direct bulk mailing and local newspaper ads are 2 ways to reach both groups. Direct bulk allows us to reach every person in the area of the post office chosen. It also allows us to choose many different areas, thus reaching a greater number of people. Bulk mailing is an affordable option at $35.00 per thousand and increases the growth per dollar. Informing current customers of online banking through newsletters and brochures at the offices is a good way to update our members on the features and answer some frequent question. Newspaper articles also enable us to be detailed in our description of services and reach a high amount of people in a single day. With a cost of $200.00 (including Sundays) it is a more expensive of the choices but it is a valuable tool in advertising. The strategies for a successful marketing program depend on the tools we use to communicate our services to the public. With many options, an investment into multiple media’s will allow us to develop and increase our customer base. Page 27 of 35 Marketing Plan
  29. 29. Infinity Bank Spruce Team Recommendation Section 15 – Customer Support Plan Customer support plays a major role in any company’s future. Farmers Insurance states, “It takes months to obtain a customer, and seconds to lose one”. This is a motto that all companies who serves customers should live by. Utilizing a customer call center is one technique we can use to make our customers feel we care about them. Many of Infinity’s customer’s problems will be able to be solved or avoided with qualified CSA’s. Infinity Bank will be utilizing Digital Insight as their premier outsourcing company. One of the major deciding factors for choosing this company was their ability to manage a customer call center for Infinity’s customers. The price of the call center employees will be included in the monthly management fee. The call center will be open 8:00 a.m. – 6:00 p.m. We will start out with 8 call center employees, Their shifts will be staggered throughout the day in order to have maximum coverage during the prime incoming call periods during every given day. We will have a clause built into the contract stating we can add or reduce headcount depending on the call volumes. Page 28 of 35 Customer Support Plan
  30. 30. Infinity Bank Spruce Team Recommendation Section 16 – Internal and External Training and Education Mechanisms Training, both internal and external will play a major role in implementing this new process. The Digital Insight team will install the new system. They will then train the on-site Infinity employees to run and maintain the system, and be available for routine questions. Digital Insight will also offer Cash Management Certification training to all Infinity personnel; this cost is included with the one-time charges in the budget. Digital Insight will provide an online tutorial for their web site. From this tutorial, the customer will learn how to complete routine transactions. There will also be a “Frequently Asked Questions” section on the site. Infinity will utilize the Digital Insight Customer call center to answer questions by live Internet chats or by phone. Page 29 of 35 Internal and External Training and Education Mechanisms
  31. 31. Infinity Bank Spruce Team Recommendation Section 17 – Privacy Policy and Implications To address customer concerns, banks implement privacy policies to advise customers how their information is kept confidential.22 Infinity Bank will have its Privacy Policy available on the website: Infinity Bank owns and operates this website at, by which it delivers branch information, financial products, etc. as well as provide customers with interactive banking services. Customers are to log in using a user ID and a password through a secured network and access personal information and services. Infinity Bank realizes that some customers may not want to continue with the online services, and these customers may opt out of the service by calling the customer service department. How we collect information In order to ensure customer satisfaction with this website, we have created this Privacy Policy to outline what types of information will be collected from the user and in what manner it will be used. Infinity Bank collects information in the following ways: • Your applications, over the phone, your use of the website • Your browser when you visit our website • Your transactions on the website • Consumer reporting agencies How we keep your information secure Infinity Bank is dedicated to keeping your personal information secure, as detailed in our employee handbook, this policy, and the contracts that Infinity Bank holds with other companies. Personal information will be limited to employees that will need this information to complete transactions that you have requested. System security is of the utmost importance at Infinity Bank, and each customer will go through a series of protocols before gaining access to their accounts. Security integrity will be maintained by a series of firewalls, intrusion detection systems, and other tools such as data encryption. Infinity Bank strives to make every transaction 100% secure, and will continue to assure the systems are in place to do so. Information sharing policy Infinity Bank will not sell personal information of its customers to other companies for the purpose of solicitation. In addition, Infinity Bank will make every effort to ensure that all of its customers are aware of this privacy policy. The policy will be posted at branch offices, sent to customers in a form letter, and will be available on the website. These postings will also include a channel for answering customer questions or concerns. Page 30 of 35 Privacy Policy and Implications
  32. 32. Infinity Bank Spruce Team Recommendation References 1. "Image of spruce tree." Web page, [accessed 29 October 2004]. Available at freeze_nature/index4.html. Notes: Image courtesy of 2. Drennan, R, "E-Banking History." Web page, [accessed 29 October 2004]. Available at 3. "A look back: Online banking timeline." Online Banking Report, January 2004. Web page, [accessed 29 October 2004]. Available at . Notes: January 2004, 4. Penn State School of Information Science and Technology. "IST110 - Infinity Bank Problem, History with ATMs, p. 7." Web page, [accessed 29 October 2004]. Available at 5. Penn State School of Information Science and Technology. "IST110 - Infinity Bank Problem, IT Infrastructure, p. 13." Web page, [accessed 29 October 2004]. Available at 6. "Bank of America | Online Banking | Overview." Web page, [accessed 29 October 2004]. Available at statecheck=GA&hlexp=x&olexp=x. 7. "Citibank Online." Web page, [accessed 29 October 2004]. Available at http://web.da- BS_Id=OnlineBankBrok&BV_UseBVCookie=yes. 8. "Sovereign Bank | Netbanking." Web page, [accessed 29 October 2004]. Available at 9. "Statistics for Online Banking" Web page, [accessed 29 October 2004]. Available at 10. "Digital Insight Corporation Flexible GUI Features." Web page, [accessed 29 October 2004]. Available at 11. Penn State School of Information Science and Technology. "IST110 - Infinity Bank Problem, Customer Interviews, p. 8-9." Web page, [accessed 29 October 2004]. Available at . 12. Penn State School of Information Science and Technology. "IST110 - Infinity Bank Problem, IT Focus Group Interview, pp. 9-11." Web page, [accessed 29 October 2004]. Available at 13. Penn State School of Information Science and Technology. ""The Information Society" from Frameworks and Approaches for Fostering Ethical Approaches." Web page, September 2003 [accessed 29 October 2004]. Available at 14. Brehm, Sharon, and Saul Kassin. Social Psychology. 2nd ed. Boston: Houghton Mifflin Co., 1993. Page 31 of 35 References
  33. 33. Infinity Bank Spruce Team Recommendation 15. DeMeo, Joe. "E-Commerce and Internet Security." Banking Strategies 76, no. 2 (2004): 6. 16. Brown, Ian, Nicholas Bohm, and Brian Gladman. "Electronic Commerce: Who Carries the Risk of Fraud?" Web page, [accessed 26 October 2004]. Available at 17. " Company Details: Digital Insight Corp." Web page, [accessed 29 October 2004]. Available at tkr=DGIN. 18. "Digital Insight Press Release." Web page, [accessed 29 October 2004]. Available at 19. Interview with Lucy Otradavec, Banking Industry Executive. Chad Marcum. October, 2004. 20. "Digital Insight Security." Web page, [accessed 29 October 2004]. Available at 21. "Television Advertisising FAQ’s.” Web page, [accessed 29 October 2004]. Available at 22. "BankOne Privacy Policy." Web page, [accessed 29 October 2004]. Available at Page 32 of 35 References
  34. 34. Infinity Bank Spruce Team Recommendation Appendix A – Biographical Sketches Nick Giacobe – Information Technology Consultant and Network Engineer Nick received his B.S. in Science in 1993 and M.S. in Information Sciences and Technology in 2000 both from Penn State University. Nick came to Infinity Bank in 2002 to manage the overall network operation of the bank. His previous experience is with Penn State University, Office of Telecommunications, where he ran the day-to-day operations of the campus backbone to all Penn State locations, covering the entire Commonwealth of Pennsylvania. Nick holds vendor certifications from Cisco, Microsoft, FORE/Marconi Networks, and IBM. Chad Marcum – Contracting and Finance Consultant Chad received his Master of Finance from Penn State University in 1996. Chad was hired by General Electric (GE) in 1997 and worked in their Sourcing department as a corporate contract manager. This position included the management of many outsourcing companies. He took a position in 1998 within GE as the leader of the FMP (Financial Management Program). Chad was promoted to a Master Black Belt of Finance in 2000, this is a quality position derived from Six Sigma. In 2002, Chad accepted an opportunity within Infinity Bank. Chad is responsible for Infinity’s corporate contracts and their finance division. Craig Marino – Business Management Consultant Craig received his MBA from Penn State in 1992, with a focus on information systems. He worked with PNC Bank in Pittsburgh, Pa from 1992-1998 as an account manager in the corporate accounts division. He then moved on to M&T bank in 1998, and became involved in the banks initial foray into the online banking world as a network administrator. Craig then moved onto Infinity Bank in 2000 as an account executive in the corporate division and has been a team project member in the bank’s initial research into establishing an online division. Kyle Purdy – Marketing Consultant Kyle received his Master of Science degree in marketing from University of Tennessee in 1992. Kyle worked for the Tennessee Net services and consulting firm from 1992-1998, where he provided internet marketing services. In 1998 Kyle joined the Infinity Virginia division where he led the team designated to plan strategic and competitive analysis for all aspects of marketing for the division. Page 33 of 35 Appendix A