Industry observers and executives with other processingcompanies predict that the recent supervisory letter on FISsecurity problems may have a limited impact on FIS' sales but willlikely heighten the importance of security for all paymentsprocessors.

NCUA forwarded a supervisory letter the FDIC and two otherfederal financial regulators sent to FIS outlining the results of arecent security examination and their concerns about the company'ssecurity operations and procedures. 

“This will cause reputation concerns for FIS and their groupservice providers, but likely will be corrected by FIS and resultin almost no short-term changes by their processing clients,” wroteTim Kolk, founder of TRK Advisers, a card portfolio consultancythat helps credit unions improve their credit card performance.“Most of their clients are happy with their products and servicing,they have a good team in the field, and the lead time to making aswitch is at least six months and more typically a year of analysisand conversion planning.”