Q2ebanking Enables Community Financial Institutions to Meet New FFIEC Guidance

June 30, 2011

Q2ebanking Enables Community Financial Institutions to Meet New FFIEC Guidance

Electronic banking provider’s proactive security updates have banks and credit unions well positioned for January 2012 deadline.

AUSTIN, Texas, June 30, 2011 –   Q2ebanking (Q2), a provider of premier electronic banking solutions for community financial institutions across the U.S., announced today that its clients are well positioned to meet the revised FFIEC (Federal Financial Institution Examination Council) guidance for the security of electronic banking activities. The guidance, a supplement to the FFIEC’s 2005 “Authentication in an Internet Banking Environment”, was issued on June 28th to better address significant legal and technology changes, increasing fraud incidents and new authentication technologies. It applies to both retail and commercial customers/members and will take effect in January 2012. While the guidance focuses on the Internet delivery channel, the principles apply to all forms of electronic banking, including mobile and voice. Specific areas to improve risk and risk management techniques include multifactor authentication, layered security and/or other controls calculated to assess and mitigate risk appropriately. “More than two years ago Q2 looked at the FFIEC guidelines established in 2005, as well as the industry response,” said Matt Flake, president of Q2ebanking. “We thought further efforts were necessary to effectively deter risk and fraud to protect end users. With this in mind, Q2 began making the functional investments to take online security to the next level.” Q2ebanking’s platform of online, voice and mobile banking solutions operate on a single security foundation. This collaborative multichannel approach enables its clients to meet and comply with the new, updated guidance. Moreover, Q2’s Risk and Fraud Analytics (RFA) solution adds an additional layer of security by dynamically modeling typical transaction behavior to detect and flag potentially fraudulent transactions in real time. These proactive security features comply with guidance by offering advanced native out-of-band transaction authentication, security alerts, full administrative controls with dual authorization, multi-factor authentication (MFA) and VeriSign® tokens to protect both consumer and commercial transactions. Flake continued, “Acknowledging and having a plan to address the ’elephant in the room’ regarding the advancements, new found methods and sophistication of cyber criminals should give consumers more confidence in today’s e-banking security precautions. Fraud has continued to expand exponentially with even more complexity, and to combat this financial institutions must be vigilant in their efforts, their processes and their partner selections.” Suzette Junier, vice president of Compliance for Q2ebanking, added, “The new guidance demands thought and strategic implementation, but it is clear in terms of its execution. With this in mind, Q2 consistently and proactively innovates and enhances our technology to meet the security needs in today’s ever-changing banking environment, and we are confident that our clients are well prepared to meet this January 2012 deadline.”