HyperCom moves into retail banking with branch authentication system
Hypercom Corporation (NYSE: HYC) today announced a program designed to reduce identity fraud at retail bank branches by using Hypercom’s highly regarded point-of-service terminals and PIN entry devices to authenticate customers by using PIN numbers, biometric signature verification or both. The initiative includes wired, wireless and unattended hardware that can be used at teller windows, personal banking and information stations, outside bank branches during non-business hours, and in handheld scenarios with floating tellers in customer lines.
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The program was developed in response to rising interest in new in-branch services that can shorten time in teller services lines, increase sales to existing bank customers as well as combat identity fraud. Customers who are identified and authenticated with Hypercom's systems and associated software, can be directly presented with product recommendations on the terminal or PIN pad screen, maximizing opportunities for capturing additional business from the current customer base.
Hypercom products available immediately to financial institutions include the company's Optimum multi-lane terminals and P4100 PIN pads, all of which incorporate touchscreen displays that support signature capture for biometric verification purposes, as well as on-screen graphics for guiding users through the authentication process and presenting new product ideas. The products can run a variety of software applications, including Communication Intelligence Corporation's SignatureOne™ suite for biometric signature verification.
Hypercom has created a separate sales team that is dedicated to the retail banking channel and plans to establish a partner program to support the direct sales efforts.
"Retail banks today are making a conscious effort to invest in retail branches to increase traffic and sales, as reflected in industry estimates that banks will upgrade and renovate 30,000 branches in 2006 alone. They are also increasingly aware of the need to combat identity fraud," said Patty Walters, Hypercom Vice President of Emerging Industries. "Our products provide an ideal platform for addressing both goals."
"This retail banking initiative is part of a broader corporate strategy to diversify into new vertical markets that can produce new revenue streams," said William Keiper, Hypercom President and CEO. "Our products have been used to authenticate consumers and accept electronic payments in retail stores for several decades, and now we are bringing that expehhat expertise to the retail banking community to provide secure user authentication as well as an important new tool for increasing sales."
Hypercom's expansion in the retail banking market also includes the introduction of ATMConnect, a service that upgrades dial ATMs to IP without the need to replace every ATM machine. Announced last week, the service enables ATM service providers to dramatically reduce the cost of dial-to-IP migrations.