http://mm.dfilm.com/mm2s/mm_route.php?id=889697

Jason BeckerHerman ChuDavid Jennis

Maureen MaggiYumin MoonEric Shurley

Executive SummaryExecutive Summary

Where does Coastal Union rank among the elite firms in the banking industry?

Benefits of Online Banking: Very user-friendly, bigger clientele, more revenue and assets, and easier to manage

A Few Words Associated with Coastal Union :

§   Trust

§   Loyalty

Coastal Union fell behind several years ago in the development of their ATM network.

With over 70 billion dollars in assets you have grown strong enough to not let a few setbacks scare you away from the direction you need to go in.

The current branches and ATM’s as well as the internal business infrastructure will not be altered. We will simply augment the new technology and correlate it with existing infrastructure and incorporate that into the daily routine of CU employees.

This is a move that can put Coastal Union on the forefront of online banking:

•Increasing assets•Expanding clientele•Eventual global and physical expansion.

Market and Current TrendsMarket and Current TrendsHistory of Banking and Market Trends Page

With its culture deeply rooted in the south, Coastal Union has been operating on long standing traditions of customer satisfaction

Past Mistake: Hesitated in implementing technological changes, Delayed introducing ATM’s

Risks associated with not taking banking online ASAP:

§       Loss of clientele

§       Loss of competitive edge

§       Jeopardizes future survival of company

Future Trends

1. TV banking

2. Wireless banking

3. Account aggregation

Improved security measures

1. Voice authentication systems

2. Thumbprint identification

3. Digital signatures.

Current InfrastructureCurrent InfrastructureAnalysis-This server is a little out of date and ill equipped to handle the strenuous loads demanded by a dynamic online system. The hardware is slow and barely passes as a personal computer, let alone a mainstream web server. The 375mhz processor, although copper and technologically advanced, is still too slow to keep up with tasks. The memory, although adequate for personal computing uses, fails to provide enough storage for upcoming server needs.an IBM RS/6000 SP system, distributed memory, multimode server, serial, symmetric multiprocessor:

•375mhz POWER3-II SMP, a copper based chip•125mhz system bus speed•2 processors per node•256mb SDRAM DIMM (PC66)•8mb level 2 cache running at 250mhz•currently runs the entire Coastal Union website

Personnel computers-Ranging from midrange 800mhz Pentium 3’s to newly released 2.8ghz Pentium 4’s. Computer memory and type vary from 128mb of PC100 RAM to 384mb of PC2100 DDR RAM. Hard drives vary drastically in size, sometimes limiting software setup

Mainframes housing the database-It is a series of eight state of the art IBM zSeries 800 servers built for security, scalability, and unparalleled performance. These mainframes employ a five Processor Unit MultiChip Module each.

Current SoftwareCurrent Software

IBM RS/6000 (web server) = Runs Unix AIX 5L operating system, with Globus Personnel computers = runs Windows 2000 Professional SP3, using FAT32, Norton Antivirus, Corporate Edition, Microsoft Office XP IBM zSeries 800 servers (mainframe) = runs a 64-bit version of the Linux operating system Infrastructure = 470 physical branch locations, as well as, 1220 ATM machines that serve 2.7 million customers located in six different states. In addition to personal accounts, Coastal Union also serves 140,000 businesses

DB2 Database = Closely knit with the Linux operating system and is tightly integrated with WebSphere. OffersSQL language enhancements, enhanced XML support, and add-ins for Microsoft Visual Studio development products.

Team DecisionTeam DecisionPrimary Decision that we came to was to keep this project In-House.Reasons:

§    Unnecessary allocation of resources if project was completely outsourced.§    Proper training §    Better resources§    Current Staff

Potential Reaction of Investors, Customers, and EmployeesKey Points: •Fiscally, the monetary investment is relatively small compared to the scale of Coastal Union’s annual assets•employees morale remains positive•solid investment in terms of human capital and resources because you are investing in your own people•Stockholders might question decision to make a substantial investment but it will be very beneficial to them in the long run•Customers initially embrace change and see it as a benefit towards them

Legal and Regulatory IssuesOnline Banking, still a fairly new topic—Not a whole lot of legislature to coverFocuses:• Customers with disabilities• The Electronic Signatures in Global and National Commerce Act (CyberSign) –

governs the use and storage of electronic signatures• Electronic Fund Transfer Act- provides guidelines for online transfers

SecuritySecuritySecurity Concerns and Problems

The single and foremost problem is with security. With the advent of online banking, the issues of security and new risks arise.   There is no feasible way for a online banking system to require the standard signature to close a contractual agreement, so online forms are created. These usually involve clicking on one of two buttons: an agree and a disagree button. By clicking on the agree button, a person is acknowledging his/her agreement.  Problems: It is difficult to prove that a user actually intended to click or actually clicked anything in the event of a dispute. Someone could have been committing fraud under a false name and information. Or maybe the click had been accidental and irreversible from the user’s standpoint. §     Fraud Problem§     Unauthorized Access§     Identity theft §    The bank is liable for keeping its site up 24 hours a day 7 days a week with minimal maintenance downtime

This can be a problem in the event of a systems failure or even a Denial of Service attack.

 

  

Money based online is no longer centralized and backed by a central institution. This means that all this digital money can travel far and wide, covering the edges of the globe

This will cause problems because money can no longer be tracked. Illegitimate funds or stolen funds are a lot harder to tag and track down

Security Measure Taken

To all these questions, we have answers!

The security of the site will be maintained by VeriSign’s Managed PKI (Public Key Infrastructure).

·    enables the issuing, renewing, and revoking of SSL certificates

·    maximum flexibility, performance, and scalability controls cost-effective solution ($6,950)

Security Security (cont.)(cont.)

Some Security features Coastal Union will include:

1.      Password Protection

2.      Anti-Virus Software: Norton Antivirus Corporate Edition w/ firewall

3.      Employee Surveillance: Ethical actions of employees and personnel

Online URL and Online URL and DesignDesign

The online banking division of Coastal Union will be registered at the domain www.coastalunion.com According to Direct Domain.com, this URL was not taken and will cost $29.99 per year to be registered including personal identity account, domain, matching email address, 5 email forwards, 10 sub-domains, and DNS management. Everything will be run off Coastal Union’s own servers

Site LayoutSite Layout

 In order to integrate these services easily into customers’ routines, customers need to feel comfortable.  Choices of Internet Banking Offered:·   Basic Choice·   Premium Choice Features of Basic Package: 

Balance Check

Customers can check the balance of their accounts instantly from any place that has a computer with an Internet access.

Transfer Funds

Customers can transfer funds between their accounts anytime with their computers.

Track History

Customers can view the history of their accounts, up to 3 months and download data to popular desktop applications such as Quicken.

E-mail Alert Customers will receive their accounts’ statement via e-mails from the company whenever there is a transaction. They can set up the period of the statement.

Division Business Strategy and Income SourcesDivision Business Strategy and Income Sources

The Premium Choice offers the following services. There will a monthly fee of $2.99, but to get the clientele accustomed to banking online this fee is waived for the first three months after activation The following chart explains the services that will be offered for the Premium Choice in addition to the services of the Basic Choice.

Make Online Payment

Customers can make 25 online payments. Additional payment is only $0.20 each.

Schedule Payments

Customers can schedule their payments in advance up to a year. They also set up a reoccurring payment.

Personalized Portal

Customers will be offered specially personalized portal that includes online banking as well as other services such as stock, mortgage.

Track History

Customers can review the history of their accounts up to 1 year and download data to applications like Quicken, Access.

Previous Session Review

Customers can review their last login session. All transactions and activities from the last session will be displayed for a better security.

E-mail Alert Customers will be notified via e-mail whenever there are scheduled payments or transactions.

Division Business Strategy and Income SourcesDivision Business Strategy and Income Sources

 

The financial services aspect of the site will be broken down into personal accounts, small business accounts, and commercial business accounts to better suit each groups needs. From there, users will be able to log in to each of these sections with vital information, enroll in these accounts, as well as find out more information about them. Once logged in, each of these will offer banking, borrowing, and investment options

 There are a number of possible services that may be implemented in near future. The

following table summarizes these services. 

Cell Phone Alerts

Customers will be notified any transactions activities by text messages sent to their cell phones. If they have any concerns, they may call our customer service.

Mobile-Commerce

Customers’ cell phones may be used to make payments like credit cards.

Division Business Strategy and Income SourcesDivision Business Strategy and Income Sources

Marketing PlanMarketing Plan

Marketing Plan In order to attract Coastal Union’s current customers to pursue a line of online banking, Coastal Union will implement several tactics.o       Informational Pamphletso       Emailo       Bannerso       Posterso       Customer Satisfaction Surveyso       Customer Appreciation Dayo       Commercials and Advertisements

Customer Support Plan

In order to facilitate an easier environment for online banking customers, Coastal Union will implement several devices for costumer support o       Hotlineo       FAQo       Emailo       Downloads

SurveySurveyPreferred Customer SurveyPreferred Customer Survey  1.As a user of online banking, how well do you like the layout of the website? ______ I think it is very easy to navigate and use.______ I think it is a great improvement from the before but needs work.______ I think the layout and design needs to be restructured.  2. How do you rate the services offered for online banking? ______ I find that they cover everything I need and want.______ I find some of the services as beneficial, but not all.______ I find that the services offered will not be of use to me.  3. As a consumer, do you feel you will use the Premium Choice Package? ______ I really like what the Premium Choice has to offer me and will definitely use it.______ I might consider using the Premium Choice once I become more adjusted to the internet.______I don’t see the Premium Choice package as being useful to me because the Basic Choice covers my needs. 4. What recommendations if any do you have to improve the Coastal Union Website? ______None, I really like the newly designed format.______I would recommend adding more features and services so I can do my banking online more often.______I would recommend removing some of the features that I feel I will not use and are unnecessary. Thank you for participating in our customer survey. Your input is very valuable to us and we will consider it for the future of our online banking option.

 

Hardware Hardware NeedsNeeds

Desktop Computers- Dell OptiPlex GX60 ($1,003.00 each)

Component SpecificationProcessor Intel Celeron 1.8Ghz, 400Mhz front side bus, 128kb L2 cacheHard Drive 20Gb Ultra ATA/100RAM 128Mb PC2100 DDR SDRAM, Shared MemoryRemovable Media 3.5” floppy drive, Zip 250CD-ROM 24x CD-ROM driveDisplay Dell UltraSharp 1504FP flat panel displayNetwork Card 3Com Etherlink 10/100

Ethernet card

Servers- Dell PowerEdge 2600 ($7,981.00 each)

Component Specification

Processor Dual 2.0Ghz Intel Xeon processors, 400 front side bus, 512 L2 cache per processorHard Disk PERC4/Di 128Mb embedded RAID running 6 X 18Gb 15k RPM Ultra 320 SCSI hard drivesRAM 2Gb PC2100 DDR SDRAMRemovable Media 3.5” floppy driveCD-ROM 24x CD-ROM driveDisplay Dell UltraSharp 1504FP flat panel displayNetwork Card Intel Pro 1000XT Copper Gigabit Network Adapter

Laptop Computers- Dell Latitude C640 ($1,917.00 each)

Component Specification Processor Mobile Pentium 4 2.0GhzHard Disk 20GbRAM 256Mb PC2100 DDR SDRAMCD-ROM 24x CD-ROM driveDisplay 14 in SXGA+ displayNetwork Card TrueMobile 1150 Wireless PC card

Software Software NeedsNeedsSoftware

o   Microsoft Office XP, which includes:  a.  Microsoft Wordb.  Microsoft PowerPointc.  Microsoft Excel Security softwareNorton Anti-Virus Corporate Edition Task SoftwareHire programmers to write and maintain programs to manage the systems and resourcesOf course these new programs will need to integrate with existing OS’ and related programs such as Microsoft Office Operating System All of our desktops and laptops will be reformatted and will run Microsoft XP Professional. Our servers will be running Windows 2000, MS Web Server, employing ASP through VB Script.  WWW/Internet Systems Eight Dell PowerEdge 2600’s, linked with IBM equipment and other in-house resources 

BudgetBudgetNeed Numbe

r Needed

Cost Per Total Cost

Director of E-Commerce

1 $100,000 $100,000

Software Programmers

3 $70,000 $210,000

Staff of IT Professionals

5 $55,000 $275,000

Domain Name 1 $29.99 $29.99

Dell PowerEdge Servers

8 $7,981.00 $63,848.00

Dell OptiPlex Desktop

500 $1,003.00 $501,500.00

Dell Latitude Laptops

235 $1,917.00 $450,495.00

VeriSign Security 1 $6,950.00 $6,950.00

Unexpected Costs --   ~$400,000.00

    Total Approximate Budget Est:

~$2,000,000.00

Privacy Privacy PolicyPolicy

·  The privacy policy will inform all present, past, and future customers that all information is confidential, and will only be used for customer and corporate needs

Information on customers that will be stored consists of: ·   customer-provided information (from applications, communication, etc.)·   account information (balances and usage)·   public record information, and credit/employment information

This information can be shared only between each Coastal Union branch, and according to all state and federal laws

VeriSign ID Management is the high-quality security

Coastal Union, tracks cookies for the sole purpose of improving the overall user experience. Coastal Union can collect information on customers in order to determine which parts of the site are most useful, and what services are of most interest to the user.

Ways Coastal Union makes customers aware of privacy policy:· Complete copy can be read on the website·   Preferred customer surveys ·   FAQ·   Customer support desk

   

Questions?