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#75340 - 04/23/03 07:17 PM Internet Banking information
c.a.r Offline
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Texas, USA
We are in the process of finishing our internet banking setup. We will offer bill pay but not account opening. To use internet banking you must be a customer and set up a user name and password. We do not advertise apr or apy. Do we need to add privacy/GLBA? Or better yet what do we need or where can I find the information? Thanks
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#75341 - 04/23/03 07:26 PM Re: Internet Banking information
Andy_Z Offline
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I would suggest a search on "Internet banking agreement" and use the "AND" operator. You'll find many hits and discussion revolving around the capabilities of your systems. Will this replace printed statements, as a point. If it does, E-Sign or UETA will come into play. If it is purely a supplement there is less to worry about.

The Privacy notice can be there, but it is not a requirement under "P". It certainly is easy to do and makes sense. This one should also include specific privacy features such as your collection and use of information collected online and the use of cookies. These are likely not in your standard privacy notice.
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#75342 - 04/23/03 07:31 PM Re: Internet Banking information
c.a.r Offline
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Texas, USA
I know customers will be able to print statements and transfer funds from one account to another (same cif# only).
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#75343 - 04/23/03 07:38 PM Re: Internet Banking information
1111 Offline
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1111
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Unfortunately the FDIC Checkers Bank web site has been removed, but HERE is an excellent URL by the chicago fed listing internet banking supervisory resources.

Yes, you need to post your privacy statement and a statement relating to the lack of security involving email, your internet banking disclosure, etc. etc. I suggest that you visit some internet banking sites to see what is posted. Of course, your internal policies must be in place along with disaster recovery relating to this service/product.

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#75344 - 04/23/03 07:38 PM Re: Internet Banking information
Andy_Z Offline
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The question is, will they still be sent paper statements. These assist you in Regs. E and DD compliance. E-statements require more work if printed statements are replaced. If this is your case you may be rushing it, but also search on "demonstrable consent". That will also yield a lot of information. But you should also become familiar with UETA since Texas has adopted a conforming version and it can supersede E-Sign.

The possible answers to your questions could be an entire seminar, depending on how far you want to go. That is why I refer you to research the topic. Likely this research will help you now and in the future as you enhance your products online.
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AndyZ CRCM
My opinions are not necessarily my employers.
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Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#75345 - 04/23/03 07:43 PM Re: Internet Banking information
Andy_Z Offline
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Quote:

Yes, you need to post your privacy statement


I will agree it is a best practice and I have done it since before "P" had a pot to "P" in, but can you provide me with a cite requiring this?

"P" doesn't require it. It says if it is there it has to be correct. And this could be a means of delivery for e-customers. There is more in the definitions, but it isn't a requirement.
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AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#75346 - 04/23/03 07:45 PM Re: Internet Banking information
1111 Offline
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Andy has a good point. The best way to implement web based services is to do it one step at a time with each step requiring a lot of research. First, a web site, second internet banking and once that works, perhaps bill payment, statements, etc. etc. If you do it all at once, you will need a lot of luck and a big staff to assure compliance.

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#75347 - 04/23/03 07:54 PM Re: Internet Banking information
c.a.r Offline
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c.a.r
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Texas, USA
Thanks, it is still unclear but I will continue to research. We already have a web site, and will be going on with internet banking. I have just been brought into all of this and continue to stay confused.
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#75348 - 04/23/03 08:06 PM Re: Internet Banking information
Andy_Z Offline
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If you are pressed on time you may opt to get an outside vendor to assist or subscribe to a good manual that at least has the info in one place and will grow with you. Sheshunoff (I think it was) had a good manual that I looked at a year or three ago. It might help and you can always preview it first.
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AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#75349 - 04/23/03 08:15 PM Re: Internet Banking information
PatrickG Offline
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The FDIC has issued some FIL's that may be helpful:
www.fdic.gov/regulations/information/fils/index.html

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#75350 - 04/23/03 10:30 PM Re: Internet Banking information
Richard Insley Offline
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Boy! Try to go out for an afternoon and look at all this interesting discussion of my favorite subject!

Several points:
- I have done two series of those full-day "Internet Compliance" seminars for Texas Bankers Association, but nothing is currently scheduled. You may want to contact Sharon Zakes at TBA about this.
- I do not agree with Andy about ESIGN and UETA. Federal disclosures are governed by federal law (ESIGN). The only time you get a choice of laws is for matters subject only to state law (contract documents and state-required disclosures.)
- I agree with Andy on privacy disclosures. Reg P does not require you to deliver privacy disclosures via the web site if you are also providing them in paper form.
- Ipso is right about the Fed pulling the public version of The Checkers Bank, although I'm thinking about producing something comparable and making it available via CD. The Chicago Fed's "Internet Banking Supervisory Resource page" isn't going to help you much--the primary compliance-related item is a dead link to The Checkers Bank.
- Weblinking is another topic you need to add to your list of issues. FDIC, OCC, OTS and NCUA issued guidance today and there's another thread or two going on that topic.

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#75351 - 04/24/03 02:20 PM Re: Internet Banking information
Andy_Z Offline
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Richard, we get into this all the time. While I am not an attorney, and don't pretend to be one, E-Sign appears to clearly allow this UETA preemption in Section 102.

(a) IN GENERAL.—A State statute, regulation, or other rule
of law may modify, limit, or supersede the provisions of section 101 with respect to State law only if such statute, regulation, or rule of law—
(1) constitutes an enactment or adoption of the Uniform
Electronic Transactions Act as approved and recommended for
enactment in all the States by the National Conference of
Commissioners on Uniform State Laws in 1999...

If it is built into E-Sign, why would it not apply?
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AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#75352 - 04/24/03 02:47 PM Re: Internet Banking information
SusyG Offline
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Richard, I have been looking for seminars, etc. on Internet/Website compliance and have found very little. Would be very interested in attending one of yours. I am in Texas. Any plans for another one in the future? Sorry I missed them. Does anyone else know of other seminars on this subject?

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#75353 - 04/24/03 02:58 PM Re: Internet Banking information
Andy_Z Offline
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As Richard noted, you may want to contact the TBA and/or ABA and ask when the next one is. This demonstrates a need and perhaps one may be planned as a result of these calls.

You could also ask for online sessions and tapes of prior live sessions if you have an immediate need and the tapes are not to old.
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AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#75354 - 04/24/03 03:29 PM Re: Internet Banking information
1111 Offline
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1111
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Quote:

Thanks, it is still unclear but I will continue to research. We already have a web site, and will be going on with internet banking. I have just been brought into all of this and continue to stay confused.




The best way to go if you are pressed for time is to visit the sites that are already offering the services, especially whose sites that are serviced by your internet banking vendor. You will see a pattern of disclosures, links to important input (email security, privacy statement, disclosures) that will end up looking like best practices. The bigger the bank the more likely that all the bases have been covered, normally.

I used this method, it worked and we went through an internet banking exam with no exceptions.

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#75355 - 04/24/03 03:49 PM Re: Internet Banking information
Rubaiyat Offline
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Be very careful using other banks as examples, even the big ones. I found errors on websites of the "big boys" and when I mentioned it to my examiner as a weak defense, he called a fellow examiner to write them up for it!

I know Richard has a number of good examples of bank websites in violation of all kinds of things he uses in his seminars.
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#75356 - 04/24/03 05:45 PM Re: Internet Banking information
Richard Insley Offline
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Andy- I am told that the Fed is now advising that ESIGN disclosure/opt-in is the only form of consent that will be recognized under the e-Regs. The UETA option applies only to matters governed by state law.
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