Internet Banking News
October 3, 1999
CAPITALIZING ON THE INTERNET- UMB Financial Corp., Kansas City, Missouri
on Friday announced an Internet-intensive service that will promote business ties between
its small and medium-size business customers. They plan to charge a small fee for the
service. You will find the site at http://www.escout.com/.
INTERNET SECURITY - There will never be 100% security to your Network/Internet computer
operations but then again nothing is 100% secure. The more monitoring and controls you
build in and around your computer operations will reduce the risk of intrusion and other
problems. While external intrusion will always be a concern, I believe that external
intrusion is less of a problem than internal intrusion, not maintaining hardware in good
working order, not following good backup procedures, executive management not
understanding the risks, and audit procedures not properly addressing the computer
INTERNET COMPLIANCE - Expedited Funds Availability Act (Regulation CC)
Generally, the rules pertaining to the duty of an institution to make deposited funds
available for withdrawal apply in the electronic financial services environment. This
includes rules on fund availability schedules, disclosure of policy, and payment of
interest. Recently, the FRB published a commentary that clarifies requirements for
providing certain written notices or disclosures to customers via electronic means.
Specifically, the commentary to states that a financial institution satisfies the written
exception hold notice requirement, and states that a financial institution satisfies the
general disclosure requirement by sending an electronic version that displays the text and
is in a form that the customer may keep. However, the customer must agree to such means of
delivery of notices and disclosures. Information is considered to be in a form that the
customer may keep if, for example, it can be downloaded or printed by the customer. To
reduce compliance risk, financial institutions should test their programs' ability to
provide disclosures in a form that can be downloaded or printed.
WEB PAGES: When you indicate a cutoff time for Internet banking transactions, indicate the
time zone, such as CST. Remember that your web site goes beyond your community so
providing your area code is also helpful.
VACATION - I will be on vacation from Thursday, October 7 through Thursday, October 14. I
will be horse back riding in the mountains of New Mexico and Colorado. If you need to get
hold of me, send an e-mail. I will get back to you on Friday, October 15. Since I an not
taking my computer, there will be no newsletter next.