Software
RSA Lands Banking Deal
Katie Dean
03/08/06 - 02:48 PM EST
Security software company RSA Security (RSAS Quote) has inked a deal with Jack Henry & Associates (JKHY Quote) to provide RSA Cyota Consumer Solutions' authentication technology to its online banking customers.
Investors liked the deal, and on an off day for the Nasdaq, shares of Bedford, Mass.-based RSA gained 6 cents, to $16.31.
Jack Henry, headquartered in Monett, Mo., and the maker of software for processing ATM and debit card transactions, will offer the technology to the 1,500 financial institutions it serves. Its shares were recently up 2 cents to $22.15.
The RSA Adaptive Authentication technology analyzes each online transaction and evaluates and scores the potential for fraud based on factors such as a user's computer, IP address, geography and past banking behavior.
That score is shared with other banks in the RSA Cyota eFraudNetwork, to protect them from "fraudsters" in real time.
Last week, Baird analyst Steven Ashley upgraded the stock to outperform, based on above-average growth predictions for RSA's Cyota division.
At the urging of the Federal Financial Institutions Examination Council, many banks are in the process of re-evaluating online security, and Ashley said that RSA's Cyota technology has a strong "first-mover advantage."