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`Stanford Federal Credit Union Pioneers Online Financial Services.
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`Stanford Federal Credit Union Pioneers Online
`Financial Services.
`
`Print
`Jun 21, 1995
`Date:
`683
`Words:
`Publication: Business Wire
`
`STANFORD, Calif.--(BUSINESS WIRE)--June 21, 1995--As major financial institutions
`throughout the country race to develop online, interactive banking systems, a small credit union
`that serves the Stanford University community is quietly leading the charge.
`
`Last year, the Stanford Federal Credit Union (SFCU) became the first financial institution in the
`United States to perform transactions on the Internet. Today, while other banks offer customers
`access to information through the Internet, SFCU remains the only institution that offers its
`members the ability to withdraw or transfer funds, pay loans, check up to a year's worth of
`transaction history, and conduct other day-to-day business online.
`
`A recent issue of Bank Technology News, in fact, proclaimed that "Stanford Federal...very well
`may exemplify the shape of things to come for financial institutions and their relationship to
`cyberspace."
`
`Warren Marshall, the credit union's CEO, believes that "The time is coming upon us very quickly
`when financial services will not be differentiated by the product, but by how the product is
`delivered.
`
`"We found that 85% of our transactions were being conducted electronically," Marshall said. "Yet
`65% of our resources were being used to serve the other 15% of our membership through three
`brick and mortar branches. Based on these findings, it was a pretty easy decision to implement
`online service last year."
`
`After a successful trial with 100 members in April of '94, the credit union made Internet
`access available to its entire membership of 30,000 last October. Aside from using the Internet
`to check their account histories and transfer money from one account to another, members also
`make loan payments and download account histories to their own computers' hard drives.
`
`Members may also dial the credit union's CU Online system via modem; however, three-quarters
`of the members currently choose to log on via the Internet.
`
`SFCU's home page on the World Wide Web allows members even more high tech convenience.
`They may complete loan applications, check interest rates, and obtain information about
`certificates, home loans, and other credit union services.
`
`For many potential online banking customers, an important concern is the security of their
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`Stanford Federal Credit Union Pioneers Online Financial Services.
`account information. With this in mind, SFCU has adopted a number of security measures,
`according to Sam Tuohey, the institution's vice-president for marketing.
`
`"Members must enter a password of up to 14 characters. My password, for example, includes
`both alpha and numeric characters and a few symbols. This type of password is very secure,"
`said Tuohey. "From a security standpoint, it's no more dangerous for a member to perform an
`online transaction than it would be to use a VISA card or write a check."
`
`Online banking was a natural progression for SFCU, which has been using E-mail for over 10
`years.
`
`"Stanford University was one of the Internet's pioneers and one of the first users of E-mail for
`interoffice communications," Marshall said. "If we were going to communicate like our members,
`it was evident we had to use E-mail.
`
`"As a natural extension of our E-mail program, we asked the University if they would allow
`access from their system to a credit union remote transaction program if we provided one. They
`agreed, provided that the server was reachable through the Internet, because this would require
`little programming on their part. Last year the University requested that we install a World Wide
`Web server so we could maintain and update all of our own information."
`
`In addition to the benefits of providing members with the convenience of remote access, CU
`Online has proven far more economical for the credit union than the traditional brick-and-mortar
`approach, Marshall said.
`
`SFCU serves 30,000 members of the Stanford community, including students, faculty, staff,
`alumni, employees of companies located on University lands, and members of the Palo Alto
`Chamber of Commerce. The credit union operates three branches and nine Automated Teller
`Machines on Stanford lands.
`
`To access SFCU's World Wide Web page: URL: http://www.sfcu.org. To reach the credit union
`by E-mail, send to: service@SFCU.ORG.
`
`CONTACT: Stanford Federal Credit Union
`
`Sam Tuohey, 415/723-8920
`
`or
`
`Cavalli & Cribbs
`
`Gary Cavalli, 415/856-3200
`
`COPYRIGHT 1995 Business Wire
`Copyright 1995, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
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