The Changing Face of Financial Institutions.

• Author: ORR, VANESSA

These days banks provide much more than traditional banking services, and as competition between financial institutions increases so will product and service offerings.

It used to be that customers could walk into a bank, open a checking or savings account, or apply for a loan. While clients can still do that today, they also have the option of purchasing insurance, turning over their business receivables to a lockbox service, or getting advice from a relationship manager on how to establish an e-commerce site.

Customers are expecting more these days, and banks and credit unions--through local branches and electronic technology--are working to meet those needs.

"It's a big generalization, but basically the role of a bank is to provide a means of cash management for individuals and businesses," explained Cheri Gillian, corporate marketing director at First National Bank of Anchorage. "Our interest is in providing people with the tools they need to manage their funds effectively for their success."

Some of the tools that banks are offering include the use of lockbox services, which allow the bank to pick up a client's receivables from a post office box, open and process the payments, and deliver a report to the client each night; insurance services that range from home and health insurance to casualty, disability and long-term care; and custom-fit leasing programs that allow businesses to acquire needed equipment. Banks are also offering both phone and Internet banking services, and some even have the ability to help customers set up their own e-commerce sites.

The Changing Face of the Customer

Banking is a very competitive business, and the driving force behind most enhanced service programs is the need to build a customer base. "The name of this game is how many people you serve--how many relationships you have," explained Nancy Usera, senior vice president of corporate development at Alaska USA Federal Credit Union. "The key to our preservation is how we deliver service to our customers or members. Their expectations are high--they want instant gratification. They want things where, when and the way they want it."

Part of the reason for this change in pace is the introduction of the Internet, and before that, telephone banking. With the ability to monitor their money more closely, people have become more aware of what their funds are doing, or in some cases, not doing.

"People expect more," agreed Lori Philo-Cook, vice president and...