We detail the main tech startup companies who pioneered lending to within the tech industry. You might be in the initial throws of getting your startup off the ground. First Tech Credit Union is a chartered credit union headquartered in Mountain View, California. It is operate under the regulation of the National Credit Union Administration. Currently First Tech Credit Union has over 405,000 members and its assets amount to over 7.9 billion dollars. Its 40 branches are located in high technology business centers in California, Colorado and six other states.
Tektronix to First Technology Credit transition
First Tech was formed as Tektronix by seven employees in 1952. The company was focused on technical innovation. 11 years later the name was changed to Tektronix Employees Federal Credit Union. By the 1970s the credit union was using computers for online data processing and ATMs. In 1985 First Tech launched Call 24 which allowed members to transfer funds and check balances by phone. Having changed its name again in 1986 to First Technology Credit the company implemented the first online banking in 1989.
Company Members and Mergers
In 1992 Microsoft was added into the First Tech membership .The company launched its website in 1995 .First Tech was among the few trustable financial institutions that could perform secure internet transactions. In 1997 the credit union changed its name to First Tech Credit Union. In 2011 the company merged with Addison Avenue Credit Union based in California and which has a lot of technology based clients including Hewlett Packard and CH2M Hill. The new body was called First Tech Federal Credit Union.
Products & Services
Among the tech startups of First Tech including mobile banking, and bio metric two-factor authentication. First Tech also offers investment, tax services and insurance. The company also provides account aggregation and online access to check images.
Security controversy and updates
In October 2015, First Tech’s update to their mobile banking and internet billing systems caused extensive payment failures among members. Members complained of how they were forced to rest passwords many times, endure slow speeds and re-enroll in eBills. The company laid down measures to improve eBills and make their interfaces user friendly. First Tech also promised to launch card controlled features and person to person mobile money transfer. It planned to update its online banking system with fraud detection and messaging tools.
Earlier in the same year and in partnership with MasterCard First Tech had announced plans for the first US biometric payments pilot. Tests were to be done on verifying payments with facial recognition and fingerprints.
The pilot program called Selfie Pay was to be conducted in a closed environment where artificial funds and biometrics would be used by First Tech’s employees. First Tech undertook the test in a bid to explore the potential to deliver greater security and convenience to First Tech’s cardholders in the US. Security would be strengthened if users’ photos, facial identity and finger prints were scanned during log in. Security is usually of main concern whenever a person uses credit and debit cards in their online transactions. Such a technology would help ease and enhance convince of using credit and debit card.
First Tech is aware that its members are the more technologically advanced in the industry and so the company strives to come up with unique programs like the biometrics that is long . a STUDY ABOUT Master cards also revealed that 83 percent of consumers are excited about technologies for secure online transactions to protect their financial information.
The bio metric pilot program builds on existing doings by MasterCard and CardinalCommerce.
First Tech & Mastercard
Unlike First Tech, MasterCard trades in the New York Security as Exchange. It is a big technology company in the payments industry. They operate payment processing networks, connecting consumers and financial institutions, banks and governments all over the world.
Tech Startup Funding
Tech startups do not have a sole method of funding due to the amount of money they require. Some sources of funding for tech startups include bank loans, venture capital, loans from friends and associates among others.
Before deciding where to seek funds and how it is important to look at your growth plans, the cost vs revenue levels, your credit history and the assets you possess at that time. Include as much details as you can in the business plan you will use to solicit funds.
Venture capital works best for startups with high expectations increase in revenue over short period of time. Loans from family and friends are easier to repay while bank loans go with their interest rates. You have to be prove you are really credit worthy to be eligible for a bank loan.