Banking & Finance.

• Author: Ward, Lisa Cilva

Harnessing Technology

In the banking industry, as in most other industries, the hottest trend is technology. No longer the staid image of stately columns, marble floors, deep leather seats and silent corridors, banking today involves creative, innovative products and services designed to preserve and expand market share. Many banks provide alternatives to traditional offerings, with a recent trend toward direct or "branchless" banking, providing services through a combination of delivery channels, including call centers, ATMs, and now the Internet.

In the old days, to find an account balance, you went to the bank and waited in line. Then came the ATM, allowing you to find a balance or make a transaction without entering the branch. Telephone banking followed, using an automatic-response unit or call-in service offering 24-hour-a-day access to electronic information needed for transactions.

"We are harnessing the technology available to make the banking experience easier and more convenient for the client, and to provide a wealth of information that has not been available in the past," says Zions Bank President Scott Anderson.

Today's trends involve using the Internet and PC, allowing electronic banking services, but with more functionality and flexibility. Customers can order checks, apply for loans, credit cards, and insurance, pay bills, check account balances, and access real-time market information, as well as online brokerage services for buying and selling investments.

Use of real-time processing allows customers to receive instant notification that their transaction was successful. Electronic banking services via the Internet almost become a customer's own personal branch within their home or office, and can move with them from home to office to hotel to overseas. People today can bank when and where they choose. There are no time or geographic boundaries. The scope of services is now expanding to include sophisticated banking tools that allow customers to access complex financial information without visiting a branch or sitting down with a specialist.

For example, many banks offer "calculators" that allow customers to determine their own borrowing power. The customer then completes a loan application online and submits it electronically for consideration. He/she then receives a response via e-mail. Loan documents can be delivered online, and with the recently approved federal legislation allowing electronic signatures that are...