TUESDAY MARCH 14, 2006
SMART CARDS
Montreal tech company GFI
Solutions wants to fast-track Canada’s transition from the
familiar magnetic-stripe credit cards to European-style “smart
cards” containing a small microcomputer or chip with all the
necessary data – including personal information – to complete
transactions. Half-owned since 2004 by GFI Informatique, one of
France’s top technology groups, GFI Solutions reportedly has
five of their “smart card” experts working in Montreal with
Canadian institutions including Mouvement Desjardins, to prepare
for conversion. Rising credit and debit card fraud is driving
the costly changeover. Unlike magnetic-stripe cards, duplicating
a smart card chip is difficult. The Canadian Bankers Association
expects the first chip transactions early in 2007. The
conversion undertaking is huge since all cards, merchant
terminals, cash and bank machines have to be replaced, at an
estimated cost of $600 million to $1-billion, and completion
between 2010-2015 as the retail industry comes into line.
(Robert Gibbens, The Gazette, Business, March 11)
The Public
Interest Advocacy Centre in Ottawa says the big issue for
consumers in the smart card evolution is privacy because the
chips can carry extensive personal information. According to
Susan Lott, a lawyer and researcher at the Centre, technology is
rapidly overtaking the regulatory process and smart cards may be
part of the next privacy legislation review. She maintains the
future framework covering electronic payments must be broad
enough to protect consumers properly.
www.piac.ca
ZUCKER ASSUMES CEO ROLE
In a surprising move to analysts,
the new owner of HBC, Jerry Zucker, will assume the hands-on
role of chief executive, as well as governor of the board.
Although management layers were reduced to allow for a more
nimble and effective matrix-type of organization, the new
president was chosen from the existing team. Michael Rousseau,
the former chief financial officer who joined HBC in 2001 from
Moore Corp., has been named president. Zucker has reportedly
already promised swift changes, and consumers will experience a
revitalized department store giant within months.
TORONTO UNPLUGGED
Toronto Hydro Telecom Inc.
announced plans to blanket downtown Toronto with wireless WiFi
coverage, allowing laptops to log onto the Internet anywhere
within the zone. The project will make the city’s core Canada’s
largest WiFi zone, according to the announcement. Toronto Hydro
Telecom said it will install radio access points on streetlight
poles throughout a six kilometer square area in the downtown
core that stretches from Jarvis St. to Spadina Ave., and from
Front to Bloor Streets. The “hot spot” will be set up in stages,
with the first phase bringing WiFi to the financial core by end
June 2006. The entire project should be up and running by the
end of the year. For the first six months, Toronto Hydro will
offer customers free access to the zone, after that it will
begin to charge.
www.torontohydro.com
DESJARDINS ACQUIRES MUTUAL FUND
DEALERSHIP
Desjardins Financial Security has
struck a deal with Standard Life Financial Inc. to acquire
mutual fund dealership, Performa Financial Group Ltd. Performa
has offices in Vancouver, Calgary, Toronto, and Montreal; a
network of 15 independent branches and about $1.3-billion in
assets under administration, mainly outside of Quebec.
Desjardins president, Francois Joly, indicated this transaction
is consistent with the strategic plan of the Desjardins Group.
He noted “Desjardins Financial Security wants to double its
market share outside of Quebec.”
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