Page 1 Executive summary by wulinqing


									               Coastal Union
Online Banking Analysis and Recommendations

                  Zach Beckel
                 James Gartrell
                    Joel Abe
                   Matt Raup
                 Lisa Peterman
                  Matt Wolfe
                              Executive Summary:
        In order to maintain a competitive edge within the banking industry, Coastal
Union must immediately begin to implement an online banking strategy. The Company
will create an internal division to implement and maintain this new online service, which
will co-exist with our current operations, complementing our real world presence with an
equivalent online presence. The synergy between the two approaches of banking will
enable Coastal Union to grow and prosper into the 21st century and beyond.

       The online banking division will consist of 25 newly hired or transferred
employees. They will be the backbone of what will become the best online bank in

       We will need to invest heavily into the infrastructure of the online service to give
our customers the level of satisfaction they are accustomed to. This investment will
enable Coastal Union to implement a state of the art banking service that will offer
unparalleled ease of use and services to our current and future customers.

         Our newly created online division will offer every service that our physical
branches currently offer. In the future, we plan to implement several features that are not
possible in the traditional bank setting, such as customized services for finding tickets to
events or automatic bill payment. These advanced features will not be present in the
initial rollout of the online service, but instead will offer a growth pattern for future areas
of profitability.

        The negative impact on our profits will be noticeable in the short term, but within
a year the online service will be self-sufficient. Within three years the online division will
turn a profit, including the costs for initial setup and investment of equipment.

       As you can see, online banking is the future of our business. By offering a
superior service and higher customer satisfaction, we will be able to establish an online
presence at a time where no other online bank has claimed dominance. With our
marketing plan and the ideas presented in this document, this dominance will be Coastal
Union’s. Thank You.
Analysis Component
I     History of Banking Information Systems and Coastal Union’s
History with Banking Information Systems
        Branch banking, interstate banking, and franchising play an important part in
banking history. Branch banking goes all the way back to 1791 when one of the federally
chartered Banks of the United States established a branch in a different state. George
Smith, a Scottish banker who worked in Illinois and Wisconsin, bought the Bank of
Atlanta in 1853. He did so in order to emit its notes through his offices that were
stationed in Chicago. Some time after the Civil War the Bank of California had a branch
in Nevada. In the 1930s and 1940s a man by the name of A.P. Giannini tried to produce
an interstate branch system of his Bank of Italy. Federal officials stopped his attempts.
The next attempt at interstate banking occurred in the late 1970s. At this time large banks
began taking advantage of “non-bank bank” clauses that were in state laws. Merrill
Lynch and Sears had offices that made loans or accepted deposits but the offices did not
do both. They did this because the “non-bank bank” clauses said they could perform
some bank functions but not all. In the 1980s a lenient interpretation of the McFadden
Act was adopted by bank regulators (“Branch” 33). The McFadden Act permitted
national banks to branch if and only if state laws allowed branching. Bankers in a number
of regions in the country lobbied to get state laws changed so that they could have the
same banking agreements. In 1980 Joseph Pinola formed a network of twenty-one banks
in eleven states that were held by his bank Western Bancorporation. The banks were
brought under one name, First Interstate (“Branch” 34).

        A humungous leap was taken in banking information systems when Wells Fargo
became the first U.S. financial institution to launch online banking. Wells Fargo is
considered an Internet innovator and rightly so. This bank holds many firsts in respect to
online banking. It was the first bank to offer secure Internet payments for merchants in
1995. In 1998 Wells Fargo was the first to offer real-time home equity credit decisions.
In the year 2000 Wells Fargo was the first to launch nationwide wireless banking, online
individual retirement accounts, and person-to-person payments (Bach 2).

         Coastal Union Financial Services Group is a national banking institution. It is
located in the southeastern region of the U.S. The headquarters is stationed in Atlanta,
Georgia. Coastal Union has become a corporate institution through the consolidation of
smaller banks around the region Coastal Union has earned the nickname “the old man of
the sea” because of their tradition and slowness to change. Though they are traditional,
they do not lack vision, which is why there was a Director of Technology Research
appointed. The bank market is changing and Coastal Union recognizes this. Coastal
Union was slow to change in the past, when ATM’s became popular. The Board of
Directors did not agree with implementing ATM’s and the bank took a blow with a drop
in their customer base. They offer quite a range of services now, but understand that
technology and information systems are the key to their future (“Module 1” 7).
II     Market Potential for Online Banking
        The world of online banking is a very competitive market. Banks that only
operate online, which mean they have no physical branches, are able to offer higher
interest rates on their accounts than perhaps a bank like Coastal Union. In order for banks
such as Coastal Union to remain in the online market they must be as versatile and offer
the same kinds as services as their online competition. Most online banks offer services
such as checking accounts, savings accounts, money market accounts, CDs, loans, credit
cards, insurance, credit reports, bill payment and brokerage services.

         Online banks do not offer all the same services. Some go beyond the call of duty.
A top-notch bank that has been able to make a reputable name on the market is Wells
Fargo. Wells Fargo has been the cutting edge bank on the Internet. Wells Fargo has been
the first bank to launch wireless banking nationwide among other accomplishments. On
their site they offer a variety of services. An individual can sign up for a home equity
loan with no points or lender fees. If somebody wants to buy stock they can sign up for
Wells ShareBuilder, which allows unlimited stock buys for eight dollars and returns
twenty-five dollars credit when signed up. There is a Trust Portfolio Reporting service
that allows a customer to view, print, download historical and pending financial data for
all accounts in their Institutional Trust portfolio. For their commercial clients they offer
such services as equipment leasing and financing. Companies can lease construction
cranes, drill presses, computers, printers, and etc. Small business owners might find the
site useful to get information about human resources, to use the financial services, to buy
supplies at the marketplace, or to receive some business tips (“Investing” 1). U.S. Bank
Online includes services that most online banks offer such as free access to checking and
savings accounts at all times, transferring funds, checking account balances, and online
bill payment. To entice customers to their site, U.S. Bank is having a Travel Getaway
Sweepstakes (“U.S. Bank” 1). PNC Bank takes a different approach to gaining customer
approval by showing their concern for customer decisions by providing a learning link.
This link offers in-depth articles, tools, books, and Internet resources to help customers
make informed financial decisions (“PNC Bank” 1). From reviewing these sites it seems
that a major marketing tool for online banks is to offer a service that no other bank is
offering and to offer more than just banking, as well as to show their appreciation for
using their services banks will offer benefits.

        Right now there are several services that are now taking off or may in the future.
Account aggregation services are Internet pages where an individual can manage all their
finances in one spot. Wireless banking lets consumers bank from small devices such as
cell phones and handheld computers. Online bill management allows a customer to
review, pay, and file bills (“Module 1” 12). A service that may become popular for online
banks in the future is concierge service. Concierge services may include finding hard-to-
find show tickets, travel research, maid service, personal shoppers, nightlife suggestions,
and errand runners. VIPdesk offers such services and partners with online companies
(Bruno 2).
        Coastal Unions main aim is to please their customers. Though the bank is rooted
in the South, which is known for staying with tradition, it seems that Coastal Union
customers are ready for the convenience of online banking. The two customers of Coastal
Union who were interviewed gave positive reactions when asked how they felt about
online banking. Ms. Lee, who has been a customer for thirty-seven years, told the
interviewer that a year ago she would have never thought of using online banking. But
since her husband recently had a stroke it would be more accommodating to use online
banking rather than interrupting her son to take her. Mr. Brown, who has been a customer
for two years, says that offering services online would be great. His wife just had a new
baby and loading kids and equipment into the car to run errands can be difficult (“Module
1” 8-11).

III    Infrastructure Analysis

                          Current Infrastructure Analysis

                  Coastal Union’s Internal Computing Infrastructure


                                              IBM Mainframe

                                              Front-End CPU

                  Coastal Union Branch     Coastal Union Branch       Coastal Union Branch

           Current Internal Computing Hardware Specifications

The current hardware specifications for our internal network are adequate for our
current needs. The IBM Mainframe is a very powerful machine that executes all
of Coastal Union’s major applications, communications solutions, and operating
system. (reference The
mainframe is directly connected to a large database array, which is where
business transactions are stored. Through a Front End Processor (also known as
a communications controller), the branches of Coastal Union are able to interact
with the mainframe by both inputting and receiving data. (reference ) The front-end
processor is one of the most integral parts of Coastal Union’s current computing
infrastructure. Multiplexors help facilitate the front-end processor, by controlling
voice, and data communication at speeds of up to T3. (reference ) Multiplexors are vital to Coastal Union for
their ability to combine many different communications signals, and carry this
information on one standard medium.

             Current External (I.E. Internet) Computing Infrastructure



               Current External Computing Hardware Specifications

External computing capabilities are minimal at this time. Coastal Union only
services the marketing area of the corporation on the Internet. The server that is
currently being used for web application is an IBM RS-6000. The RS-6000 is a
entry level rack web server with enough power to serve the marketing
department. However the RS-6000 has no powerful database solutions, and only
boasts a single 32-bit processor for computation, with maximum data storage of
approximately 36 gigabytes of data.

                                  Current Software

Coastal Union strives to have a heterogeneous network, and as a result uses
software that is compatible on various operating systems. The Unix operating
system (and other flavors of Unix, like Linux for example), is Coastal Unions
primary OS for back-end and server applications. Unix is a very stable operating
system that is efficient for network applications. (reference Unix promotes interoperability
between operating systems like Microsoft Windows, Solaris, Mac OS, OS/2,
Novell, and others. For the front-end or user-end Coastal Union promotes ease
of use, graphically oriented interface. We want our users to be able to focus on
the problem that they need to have done, and not worry about archaic Unix
commands. Microsoft is the most user-friendly operating system, which boasts
an easy to use graphical interface. (reference
Database is another important aspect of Coastal Union’s current infrastructure.
The database software we are currently using is DB2 made by the IBM
Corporation. DB2 is a diverse solution to database problems by utilizing the web
and multimedia. (reference
IV     The Team Decision
How Coastal Union will develop the online banking services:

         Coastal Union will create an internal division to handle the new web banking
initiative. This will be an integrated division, tied to the existing Coastal Union network
and replicating virtually all banking services already offered.

        The development of this initiative will be the most intensive project undertaken
by Coastal Union since the rollout of the ATM machines. All current employees will
undergo training to inform them of the new online services and how to inform the
customer of the new services. Normal core services will not be interrupted in any way or
be altered while the online division is being created and implemented. While the web
service is brought online, we will keep the employees informed of each service as it is
implemented. For example, simple banking transactions, such as saving and checking
account management, will be implemented before high level applications, such as online
loan approval. Employees will thus be equipped to answer any questions that customers
may have about the new services. They will also have a support system to fall back upon,
including branch managers and a customer support phone number for answers to
questions the employee does not know the answer for.

Estimate of resources needed:

10 Servers:
    2 for communications
    1 web server (backup)
    1 online banking server (backup)
    1 WAP server (backup)
    1 marketing server (backup)
    1 for mainframe of company
    1 for database (backup)
   • 2 for intranet (holds branches and ATM’s – backup)

Marketing staff (subset of overall marketing department)
Software and OS (WebSphere, WebObjects, i9, etc)
Customer Support staff (toll-free number, email support, employee question support)
Web site design and upkeep team

Scope of Services:

•      Savings Accounts
       - Creation
       - Viewing
       - Editing
•      Checking Accounts
       - Creation
       - Viewing
       - Editing
•      Certificate of Deposits (CDs)
       - Creation
       - Viewing
•      Loans
       - Auto
       - Home Equity
       - Mortgage
       - Student
       - Small Business
       Including these actions:
       - Applying
       - Managing
       - Payment Options
•      Credit Card
       - Applying
       - Balance(s)
       - Fraud Protection
•      IRA accounts
       - Creation
       - Managing
•      ATM card(s)
       - Apply
       - Report Lost Card
•      Online Bill Payment
       - Auto Deduct
       - Auto Reminder
       - Overdraft Protection
•      Direct Deposit
       - Checking or Saving Account

Potential Reactions:

        Some employees may see this venture as a possible replacement for branch
offices, thus the loss of jobs currently held. We see this division as a compliment to our
existing services and employees, not a replacement. We must stress this idea to our
employees and show them how this new division will make a positive impact on the
company as a whole, as well as their individual jobs.

        Other employees might see this as an opportunity to advance in a different
direction in their Coastal Union careers. The advancement of these employees would be a
welcome sign. Obviously, this would depend greatly on the abilities of the individual in
question, but advancement from within would certainly be considered.

        We believe the overall reaction from our customers will be positive. Customers
will see the addition of new services as a nice compliment, or even perhaps as a
replacement, for the way they currently bank. As long as the customer is given the
opportunity to learn about our new services, we see this as nothing but upside.


        Short-term investors will not like our plan to implement an online banking
service, because it may impact our profits for one or two quarters while we construct the
infrastructure and interface. Long-term investors should be enthusiastic about our new
service, because it will only expand our profits and services offered, resulting in a
stronger entity and a more solid investment.

Reflection and Team Process:
        The first step in the decision making process is problem recognition. The
problem to be dealt with is: how Coastal Union will develop its online banking services.
The second step is problem interpretation, giving meaning to the problem just stated.
This involves looking at whether it will be in house or outsource, how the organization
will function with this new development of Coastal Union, estimating internal and
external resources, the scope of sources that the online bank will offer, and the reaction of
all those affected by such a new implementation. The third step is problem attention,
which aspects of the problem should be paid the most attention (prioritize). All aspects
listed above were all addressed because each one is directly influential on how well
Coastal Union will survive in the online banking market. The fourth and final step is
courses of action, what choices will be made to solve the problem. The members of this
team researched and considered all possible solutions in order to come up with the team
V      Legal, Ethical, and Social Issues Discussion

The move to online banking brings up some legal and regulatory issues that must be paid
attention to before implementing such a system. Security issues are going to become
legal issues. Online banking is increasing and as this is increasing so is fraud and identity
theft. This is not only costly to customers whose money is stolen but also the bank from
which the money is taken from. Meridian Research has released information that says
Internet fraud will likely reach forty billion dollars in 2004. The California Public
Interest Research Group has published this: it takes a consumer two to four years to settle
cases that average in a loss of $18,000 because of fraud. And among all the scandals and
cases of fraud taking place there is one in particular that proves that any customer’s
financial account can be attacked. For example, a Brooklyn busboy stole the identities
and broke into the financial accounts of Oprah Winfrey, Ted Turner, and other celebrities
(Bob 1). That’s why it has to become a top priority for online banks to ensure that
customers are who they say they are. As for regulation issues, there is support growing in
Washington D.C. that wants privacy to be protected on the Internet. Advocates of
protecting privacy of individuals on the Internet believe that if the government does not
intervene then individuals will not be able to control who collects their info and where it
will be distributed to. Those who oppose such intervention believe that it will harm
consumers, retard electronic commerce, and disrupt the protections of the U.S.
Constitution. Some forms of regulation that could take place are: laws that require online
businesses to erase information about an individual if that individual would request it,
apply property rights to personal information, and laws that require businesses to get an
individual’s consent before collecting and distributing information about them

        The feelings that the employees of Coastal Union may take on are portrayed
accurately in the interview with the focus group. One employee feels that going to online
banking is a giant mistake. He’s heard that there is no possible way to make online
transactions completely safe and he states that he does not feel the bank is in the position
to make the networks completely protected. He says that the company is not ready to
deal with hackers and crooks. He conveys feelings of frustration and concern. He seems
frustrated with the idea of Coastal Union going to online banking because he doesn’t
want to have to deal with customers who have complaints with the new system. He also
seems scared of losing his job. Another employee feels completely different about the
subject. She states that she thinks that if Coastal Union does not move to online banking
then they are “going to go down the tubes”. Overall, from the consensus of the
employees interviewed, it seemed that most were scared of not being needed anymore or
just scared of the change in general.
VI     Online Banking URL
        The URL for the online banking site will be:
There will also be a link to the online banking site from the main website for the
company, which is located at This distinction is important
because the main website will be informational and would have a section for employees
to log in for use away from the office. This function is only for corporate employees, not
each employee in the company. The website will be the
gateway to all commerce functions and banking options.

VII    Online Banking Division Proposal Summary
       The online division of Coastal Union will consist of a 25-person team. The
breakdown of this team is as follows:

• Online Project Manager (1): In charge of the entire online project, from implementation
to maintenance.
• Web support team (4): Includes on Webmaster and three support positions. They will be
responsible for developing the online banking interface, implementing and maintaining
that interface.
• Network/IS team (4): Team is responsible for the hardware end of the division,
including initial installation and eventual maintenance.
• Application support (1): This person is in charge of maintaining the software package.
They must also coordinate between the web support team and network team.
• Customer Service team (13): This team includes 12 customer service representatives,
three for each shift, and one supervisor. This team is positioned in a manner to allow easy
scalability as the online business grows. They would answer phone calls as well as
answer email questions.
• Security Manager (1): This person is in charge of security on the website, ensuring the
web team is using secure protocols and resolving any security issues. They will also act
as a liaison between the online division and the regular bank security division.
• Quality Assurance Manager (1): This person will be responsible for Quality Assurance
(QA). This will be accomplished through customer surveys, announced and unannounced
feature checks. This person will also be responsible for customer feedback for
suggestions on improvement and will work with the Customer Service team to resolve
any customer issues.

        Most of these employees will be hired from the outside, with the possible
exception being the customer support team. Several of these employees could easily be
transferred from within, if the interest is shown, and could be trained for the specialized
online banking support they would need to give.

        The Customer Service (CS) team will also provide support for employees in the
branches for questions customers may bring to them about our online banking services.
The employees in the branches will have training for the basic questions, but the CS team
will serve as their backup and information source.
VIII Division Business Strategy and Income Sources
        In order to become one of the premier online banks in the country, this new
division of Costal Union will offer customers comprehensive banking services on the
Internet. However, we will be able to separate ourselves from our competitors based on
the ease and speed of use, simplicity of design and high level of security afforded to
clients. By offering online banking, Coastal Union will attract more customers, leading
to more revenue, which will offset the cost of creating this division as well eventually
increasing profit.

        Costal Union customers who use the online banking services will be given full
access to their accounts, both checking and savings. This will allow them to pay bills
online, transfer money between accounts, have funds directly deposited and check
balances. These services are done using direct deposit and account specific routing
numbers. With these services now being offered online to both private individuals and
business we can expect to have an increase in new business opening accounts in the bank.
Recently more people have been using their bank to invest money for retirement. With
the current state of the stock exchange the consistency of bank interest rates and the
security this offers is increasingly attractive. By allowing people to check investments
and deposits it gives and additional sense of security. In addition to these basic services,
we will have online applications for loans, mortgages, retirement plans and investment
options. . Of course in some cases it is necessary to meet in person with a bank
representative, however this will speed up the process by clearing up preliminary paper
work. The site will also have a search engine so that people can find branch banks and
ATMs based on a zip code. Finally, company information to encourage investment, and
employment opportunities will also found on the main site as well as here.

        In order to distinguish ourselves from the many other banks offering these
services we will have faster connections, which are easy to use and secure. By design
and layout the graphics and text boxes will give a virtual tour of using the site which will
let people feel comfortable with this new service. The hardware and software powering
the system will be of premium quality. What will most set us apart from competitors is
the online customer support allowing us to quickly remedy any problems that arise within
the banking system. This will be down through a specialized program, similar to Instant
Messenger. Lastly, by offering customer orientation sessions at local banks our
customers will become even more comfortable with using the Internet for banking

       The new banking department will make Costal Union more attractive to
prospective customers as well as encourage current clients to stay with the bank. By
bringing in and keeping investors, the system will be able to offset original costs and
increase revenue. The ability to process transactions through direct deposit will make
Coastal Union more attractive to businesses which seek to speed up money exchanges.
We will become profitable by maintaining the high standards that the business is now
being managed with.
IX     Marketing Plan
        The most effective way to attract current customers to the idea of banking online
is by offering orientation seminars in branch banks, and producing fliers that also explain
the process. By familiarizing them with the idea of using the Internet to bank, the
transition will be very easy to make. The more difficult of tasks is attracting new
customers to Costal Union. The basic slogan which will be used is “Banking; Whenever,
Wherever.” Conveying the message that people can now do their banking when it’s
convenient to them. We will place ads with this slogan and details of services offered in
regional papers, and magazines as well as on the Web. An important part of the
marketing plan is informing prospective investors of what sets Coastal Union apart from
other online banks.

        Another form of advertisement is the rankings in online banking surveys, such as
the Gomez report and Forbes. Our goal is to consistently rank at the top of these surveys,
which will increase our bank awareness and give the potential customer a sense of
security, which is one of the biggest selling points in banking, and the hardest to achieve.
We feel that our superior banking system and attention to the customer will allow us to

X      Customer Support Plan
        In order to be efficient as an online bank we must have effective customer
support. We need to offer support using email, the telephone, and our specialized instant
message help system. The instant message is a new idea for customer support. We will
also have a FAQ (Frequently Asked Questions), which will be database driven, so
customers can search for a specific topic or concern with ease. With the switch from
traditional banking to using the Internet it will be necessary to improve upon the current
customer support system of Coastal Union. In particular a new staff will be needed
which is very familiar with the system, hardware, and current technologies. Additionally
a new phone system needs to be developed to better route calls in regards to the problems
with the computers. In order to eliminate basic problems though we are going to offer
orientation sessions for all members of the bank. In this we will walk them through how
to use the system and conduct their banking, security issues and how we protect their
money. It is hoped that by taking this free course we can cut down on simple complaints.
       XI      Internal and External Hardware Needs

Server Specifications:

      Sun Enterprise 450 Server
      4 480-MHz UltraSPARC-II Processors
      8-MB External Cache
      4-GB Memory
      4 36-GB 10000 RPM UltraSCSI Disk Drives
      1 Floppy Drive
      1 DVD-ROM 10 Drive
      3 605 Watt Power Supplies
      Solaris Operating Environment Server License
       List Price: $52,195.00

4 Raid Array Storage Stacks (SCSI) at ~56,000.00 per stack: $224,000.00
    1 for web server, online banking, and WAP
    1 for marketing
    1 for Database
    1 for intranet and employee storage.

Raid Array Storage Specifications:

      Sun StorEdge T3 Array for the Workgroup
      1 Sun StorEdge T3 Disk Array, 660-GB
      1 RAID Controller with 1-GB Cache
      1 Copper-to-Optic Media Interface Adapter
      1 5 Meter Fibre Optic Cable
      2 Power Supplies
      2 Fans
      Sun StorEdge Component Manager Software
      Tabletop or Rack-Ready
       List Price: $55,700.00

Other Stuff: ~$100,000 (i.e.: routers and switches)

      10 - 3Com® SuperStack® II Dual Speed Hub 500 24-Port
       List Price: $1,275.00

Internal and External Hardware Specifications explanation
The Sun Enterprise 450 Server will play a vital role in bringing Coastal Union into the
online banking market. Built on the efficient RISC architecture, the Sun Enterprise 450
server has 4 480 MHz processors that will handle all of our customers needs. This
machine facilitates a heterogeneous network because it runs the operating system Solaris.
Solaris is a flavor of Unix that enables interaction of different operating systems through
one machine without confusion or error.

4 Gigabytes of memory allows a huge amount of space for applications that need to
temporarily store data, and quickly retrieve it for processing. Four local 36 gigabyte
UltraSCSI hard drives spinning at 10,000 revolutions per minute provide quick access of
locally stored information that maybe necessary for server applications.

This machine will help bridge the gap of our internal network with the Internet. It offers
an immediate connectivity with our IBM Mainframe that does all our transactions from
local offices and our marketing web server the IBM RS-6000. Applications created on
this new server will also levy the workload off of the IBM Mainframe and RS-6000. New
applications will make our networking more efficient.

Four RAID Arrays will allow provide mass amounts of storage for our data.
There will be no need to upgrade branch computers because the purchase of the Sun
Enterprise 450 server coupled with the purchase of four array storage stacks. Our servers
and mainframe will do all of the computing. Customers can supply their own data
through the Internet, and our employees will be able to access and store this data from
one centralized location. Each array will be assigned to an aspect of the company; one for
web server, online banking, and WAP, one for marketing, one for database, and one for
an intranet and employee data storage.

In order to be able to execute our new interconnected network, we must increase the size
of our already efficient communications infrastructure. We will need to have funds
allotted so that we may properly fill the need for new fiber optics cables, multiplexers,
switches, and routers. It is vital for Coastal Union to interconnect these new machines on
to our network.

XII    Internal and External Software Needs
Software needed:

    SunScreen Secure Net software $0.00
    Oracle Database Enterprise Edition $800.00
    Wireless Option $200.00
    Internet Application Server Enterprise Edition $400.00
    Mainframe Integration Gateways $95,000.00

To make use of all the new hardware that Coastal Union using it is important that there
be new software that will help utilize this hardware to the best of its capacity. The most
important part of Coastal unions heterogeneous network is compatibility transparency.
The DB2 files that were run on the Mainframe will now need to be converted to Oracle,
and visa-versa. This is where Mainframe Integration Gateways will serve a vital role,
keeping data moving at high speeds. Although this solution is expensive, it will pay for
itself over time with reliability and efficiency.

The Oracle Database Enterprise Edition is the most efficient database solution on the
market. Oracle Database products are easy to upgrade when a new version comes out.
There are no painful migrations of data due to a new version.

The Internet Application Server Enterprise Edition combined with the SunScreen Secure
Net software, will help Internet level communication. These solutions will offer secure
transaction methods. SunScreen Secure Net software is firewall software that will block
ports from malicious attacks from crackers.

It is essential that Coastal Union buy these software solutions to integrate successfully
into the online banking industry. United with the hardware needs, Coastal Union will be
thrust profitably into the online market.

XIII Internal and External Information System Needs
Upgrade Possibilities:
      Wireless Banking: WAP Technology, Bluetooth.
      Online Management (AMast): Oracle DB, Sun Enterprise Servers with CGI Front
      Account Aggregation Services: Out source or approve specific sites. Perhaps
       would take some strain on our machines.

    We are going to source all of our information through the communications portion of
our design. This is going to decide where the information is going and what to do with it.
This helps out our web servers and keeps the processing to a minimum on other servers
that will need more of it. We have integrated the Internet in with our service as well.
However it is separate from our internal intranet. This solves many security issues
troubling us. All of our transactions will be carried out in our transactions mainframe.
This will be accessible from both the branches and the Internet allowing us to satisfy
XIV Security Needs and Discussion

        Coastal Union has several key positions to ensure our customer data is secure.
The first is the Security Manager. This position will ensure that the proper procedures are
being followed and the best protocols and newest and best methods of online security are
used. This position is directly responsible for the security of our customer’s data.

        The other significant position is the Quality Assurance Manager (QAM). The
QAM is responsible for the quality of our online banking service and must monitor
customer complaints and suggestions, as well as security “willies” that customers may
feel uneasy about, but which are in fact completely secure. Depending on the situation,
the QAM must work with Customer Service to ensure the customer is completely at ease
with the security of our web site.

Measures taken to ensure our customers data security will be as follows:
   Frequent updates of database software
   Frequent backups of data
   Frequent logs to make sure nothing is going on that isn’t supposed to be
   Frequent security audits by us and hired company’s
   Out source some customer information only to other secure servers
   Finally, encrypt everything!!!

XV     Approximate Budget


Servers                                          Quanity       Price
Communication                                       2       $104,390.00
Web server (backup)                                 1       $52,195.00
Online banking server (backup)                      1       $52,195.00
WAP server (backup)                                 1       $52,195.00
Marketing server (backup)                           1       $52,195.00
Mainframe of company                                1       $52,195.00
Database (backup)                                   1       $52,195.00
Intranet (hold branches and ATM's - backup          2       $104,390.00
                                         Total     10       $521,950.00

Raid Array Storage Stacks (SCSI)                 Quanity       Price
Webserver, online banking, WAP                     1         $55,700.00
Marketing                                          1         $55,700.00
Database                                           1         $55,700.00
Intranet and employee storage                           1           $55,700.00
                                          Total         4           $222,800.00

Other                                                Quanity           Price
Routers, switches, etc.                              multiple       $100,000.00

Software                                             Quanity           Price
Sunscreen Secure Net software                                   1     $100.00
Oracle Database Enterprise Edition                              1     $800.00
Wireless Option                                                 1     $200.00
Internet Application Server Enterprise Edition                  1     $400.00
Mainframe Integration Gateways                                  1    $95,000.00
                                           Total                5    $96,500.00

Employees                                            Number            Salary
Development/hardware and software                       8           $480,000.00
Development Management\Network Supervisor               2           $200,000.00

Tech Support
Costomer Support/Costomer Relations                     8           $320,000.00
Support Management/Relations Supervisor                 2           $200,000.00

Magnagers over all departments                           2           $300,000.00
                                          Total         22          $1,500,000.00

                                                   Total Cost =     $2,441,250.00

XVI Privacy Policy and Implications
          The most important thing to our customers is the security of their money, whether
it is in a Costal Union branch or being transferred online. Furthermore, we will set
ourselves apart from other online banking companies by the how stringent we are in
protecting investments. To make people feel secure we will make customers aware of
our security policy when they first log into the system and at basic online banking
orientation meetings. A basic privacy protection system will only allow customers to be
logged onto the bank for periods of 30 minutes. After a period of 30 minutes users will
be automatically logged off, however then can easily log back in. This is to protect
customers if they accidentally do not log off and leave their computer unattended.

        Coastal Unions policy privacy is that we only release account information to a
third party in these cases:
    - In order to complete a transaction or transfer.
   -   When outside sources such as creditors need to check the existence of the account
       at Coastal Union
   -   If the customer has specifically given Coastal Union permission to release it.
   -   Or if the government requests the information through a legal form of requesting.

       These are the only cases in which Coastal Union will disclose account
information to a third party. Many other banks are willing to release information to
consumer researchers but we will not.

       Finally, in order to protect privacy from individuals who attempt to search for
information illegitimately we will have an incredibly high level of security and person
who periodically checks for holes in the system.

        Implications are that in some cases it may make it more difficult for large
transactions to take place, or people to release information. We believe though that the
additional security of knowing that your funds are not easily being disclosed will
counterbalance other problems.

       Works Cited
Bach, Deborah. “Absence of E-Strategy Works Well for Wells.” The American Banker.
   21 Sept. 2001. Lexis-Nexis. L.A. Beeghly Library, Huntingdon, PA. 25 Sept. 2001
Bob, Kenneth. “How Will Banks Ensure That Online Clients Are Really Who They Say
   They Are?” Microbanker ONLINE. 2001: 23 pars. 9 Sept. 2001
“Branch Banking, Interstate Banking, and Franchising.” Banking and Finance, 1913-
   1989. 1990.
Bruno, Maria. “Winning Customers: Concierge Services.” Bank Technology News
   Sept. 2001: 30 pars. 9 Sept. 2001 <wysiwyg://79/
Governing Internet Privacy: A Free-Market Primer. About. 15 Sept. 2001.
Investing has its rewards. Wells Fargo. 2001. 28 Sept. 2001.
The Penn State School of Information Sciences and Technology. Module 1: Coastal
   Union Problem. 2001.
PNC Bank: The Thinking Behind the Money. PNC Bank. 2001. 28 Sept. 2001.
U.S. Bank. U.S. Bank Online. 2001. 28 Sept. 2001.
Appendix 1: Internal and External Team Resumes and
Related Experience
                                     Matthew Raup

910 Liberty Valley Road                                            (570)742-4960
Danville, Pa 17821                                       


               I have programming experience in three different languages
                                    *Visual Basic

I have just one class in Java and a whole year of Visual Basic. I have been programming
HTML for over two years, with my homepage being the best of my works. You can see
this at .

Sports Assistant

Worked three months for Meadowbrook Christian School. The job included management
of intramural sports. I also designed a computer program to keep track of sports jerseys.
I had many responsibilities as well as given chances to think of new ways to do things.


Worked two years as a janitor for Christ Wesleyan Church. I was trusted to make my
own times, make important decisions about Church property, and given charge of
expensive machinery. It was a job with a lot of responsibility, but I handled it fine.


                                High School Diploma
                             Meadowbrook Christian School
                    Bachelors degree in Information Technology
                                  Juniata College

                                     Zach Beckel

Rd 2 Box 87                                                       (814)696-1997
Hollidaysburg, Pa 16648                                 


              I have programming experience in three different languages
                                   *Visual Basic

I have had a summer course in Java at Lebanon Valley College. In high school I had 1
year of visual basic, 1 year of Pascal, 1 year of logo, 1 year of BASIC, and 2 years of
C++. I have taught myself many of the languages I know but I took them in school to get
a better background of them. I never took a class in HTML but am very good at it. My
webpage is

Sears Brand Master

I work at Sears Electronics as the brand master there. I sell, and help people out with
computers and any other electronic equipment sears sells. I love to work there because I
get to deal with people one on one. I like to make people happy and keep them informed.

                                 High School Diploma
                            Hollidaysburg Area High School

Bachelors degree in Computer Science/Information Technology with a background
                              of Criminal Justice
                                 Juniata College

                                 453 Juniata College
                                Huntingdon, PA 16652
                                   (814) 641-4687

      Matthew Wolfe
O B J E C T I V E : Implement an online banking system for Coastal Union.

       Technical skills: Experience in Java, C++, BASIC, PASCAL, HTML,
       Applescript, CSS, Javascript, VAX, UNIX (including BSD UNIX), Windows
       3.1, 95, 98 ME, NT, 2000, Mac OS 7.0-9.2, OS X

       Previous leadership roles

       1992-1996 College Prep, Quakertown Community High School
       1999-2003 English/Computer Science/Technology, Juniata College

       1996-1999 Assistant Manager, Sears
                 Day to day operations of store, including scheduling, hiring, firing,
                 employee relations, merchandising, stock ordering, customer
                 satisfaction, program implementation

       2000       Sales Rep, Vector Marketing
                  Ran own office, motivation, hit sales peaks/perks, attended trade
                  shows, demonstrated products, performed in a team atmosphere
                                 1401 Juniata College

                                Huntingdon Pa, 16652
                                   (814) 641-4644

                                       Joel Abe

       To provide Coastal Union with sound business and marketing advice in the
implication of an online banking infrastructure.

       Technical skills: College and High School level business and statistics courses.
Senior research project examining marketing strategies and a strong background in
computers and their use in online banking.
Also additional leadership and communication skills.

       1994-1998- Archbishop Hoban High School Akron Ohio
       1998-Present- Psychology/Peace and Conflict Studies Major

       1994-1999 Stricklands Inc.- Worked with customers handling feedback also
was in charge of collection of money and overseeing other employees.
         2001 Americorps – Designed and implemented educational and entertaining
   programs on the computer for below poverty line children. Worked within a team
                                    oriented setting.

                                     Lisa Peterman

155 Juniata College                                                (814) 695-8573
Huntingdon, PA 16652                                     

                   I have programming experience in these languages:
                                    *Visual Basic

In high school I took half a year of Pascal and half a year of Visual Basic. I am taking
Java at the moment.

                   Experience that may directly relate to this problem:
                             *Researched market potential
                       *Researched banking information systems
                      *Researched legal, ethical, and social issues

Score Keeper

I worked one summer at the Hollidaysburg YMCA keeping score for the women’s
league. I kept track of the score on paper and electronically.

Old Navy Sales Associate

I have worked at the Old Navy store that is located in the Logan Valley Mall for over a
year. I hold many duties with my employment at Old Navy. I run the sales floor and
cash register. I am a member of the shipment crew and have been put in charge of
shipment. I work on creating room for incoming shipment and several other duties. I
have had to deal with being responsible for many things that affect how smoothly the
store runs. I handle pressure situations very well, and I am adequate in meeting


                                  High School Diploma
                             Hollidaysburg Area High School
                                                                  James Gartrell
                                                                   1111 Juniata College
                                                                  Huntingdon, Pa 16652

Technical Experience:

   OS: NetBSD, Linux, Solaris, Solaris x86; Familiarity with Windows 9x and
    Macintosh environments
   Languages: Perl, CGI, shell scripts, java, javascript, HTML, CSS.
   Server Administration: Apache, CVS
   Oracle: Familiarity with Oracle, and introductory SQL

Internship Tourtellotte Consulting INC. Natick, Ma Summer2001

         Developed CGI and other PERL programs.
         Technical consulting for Alliance Health Group. Newton, Massachusetts.
         Set up system for laptops on the Impala Project for Pfizer Inc. New London,
         Researched specifications for an internal server that would run Oracle DB and
         Set up internal server.

Education: Sophomore at Juniata College majoring in Information Technology and

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