Customer Profile

Technology Credit Union (Tech CU) provides financial services to professionals in Silicon Valley, serving 77,000 members with over $1.3 billion in assets. Tech CU is among the top 1% of the nation’s credit unions with nine full service branches in Silicon Valley.

Background

Serving high tech members in Silicon Valley, Tech CU used to rely on traditional forms of authentication such as drivers licenses and passports when members visited branch tellers and conducted account-specific transactions. Branches also had on file cards with members’ signatures, called signature cards, which tellers compared with the signatures of individuals visiting a branch to identify them. Not only was this manual process prone to human error, but a signature card was only held at one branch, so if an individual visited another branch, that branch would have to request the signature card to be faxed from the original branch, a process that could take up to 10 minutes. Later Tech CU imaged all signature cards so that they could be accessed electronically, but comparison by teller still took up to one minute.

Challenge

Tech CU's Delivery Systems Division, led by SVP Mike Luckin and R&D Manager Barbara Cure, needed to implement an alternate method of identification at its branches in order to authenticate members more quickly and accurately, especially given the growing concern over identity theft and fraud. The new system also needed to provide members with a better customer experience.

Solution

In 2003, Tech CU implemented the MemberID System. Now when members visit a branch teller, they have the option to authenticate themselves by entering a PIN (something you know), swiping a debit card (something you have), or placing their finger on a sensor (something you are) using an IDMatrixx device with a numeric keypad, a card reader, and a fingerprint sensor from UPEK, Inc. Software and system integration were also provided by IDMatrixx, which selected the UPEK TouchChip TCS1 fingerprint sensor to be incorporated into the authentication solution.

“Financial institutions need technology that is both accurate enough to protect sensitive data and easy enough for a large customer base to use daily, and UPEK fingerprint sensors fulfill these needs,” said Guri Walia, President of IDMatrixx. “From a technology standpoint, we switched from another fingerprint sensor to UPEK’s based on greater robustness, larger imaging area, and better ESD protection.”

Results

Members feel more secure knowing their accounts are protected from identity fraud by a higher level of security. Currently over 14,000 Tech CU members, typically high net worth members, use MemberID, and this number continues to grow as members increasing replace their PINs with their fingers and use biometrics as the preferred second ID for wire transfers.

“I’m comforted knowing my private financial information is protected by fingerprint biometrics,” said a Tech CU member. “I can access my account even if I forget my wallet or my PIN, and I feel confident that the credit union will prevent a fraudster from accessing my life savings.”

Tech CU has been able to lower authentication time from the 1 minute it took to compare imaged signature cards to an average of 3-5 seconds using the MemberID System.

“Deploying the IDMatrixx biometric authentication solution using UPEK technology demonstrates to our members that they are our priority when it comes to protecting their financial assets and ensuring fast service when they visit our branches,” said Cure.