Online Banking.

• Author: BONHAM, NICOLE A.
• Position: Interview with National Bank of Alaska President Richard Strutz - Brief Article - Interview

Richard Strutz, National Bank of Alaska

As an increasingly technological society opts to move online to bank and invest, financial institutions in Alaska and worldwide are acting fast to meet the demand, serving up a host of interesting options. That response includes facing client's scrutiny regarding issues like security and prompt replies to e-mail questions and queries.

National Bank of Alaska President Richard Strutz recently addressed a series of questions from Alaska Business Monthly regarding this innovative way of doing business--and the challenge of keeping ahead of the curve.

Strutz: Although less than five percent of our customers use our Internet banking service, the number of customers is growing rapidly. In just four months, Internet banking sales exceeded our one-year goal, as well as surpassing our peak PC banking volume by 32 percent. Obviously, customers perceive direct Internet access as a much more convenient way to access banking services than a dial-up connection.

ABM: Five years ago, did you anticipate this industry trend?

Strutz: Certainly we expected that electronic delivery channels would continue to grow. I don't think that anyone knew that Internet banking would be the primary delivery channel. At that time, private networks were the primary delivery channel, not the Internet.

ABM: Initially, NBA offered a directdial version of electronic banking and last year turned to the Internet version. What logistical concerns and developments arise from implementing such a major aspect of client service?

Strutz: We introduced NBA Internet Banking in September 1999. As with any new delivery channel, the major challenge was developing the key infrastructure. In this case, we had to coordinate with the system partner, as well as developing our product profile and marketing plan. In order to ensure that the service worked correctly, we also underwent an extensive testing phase. In addition to testing system capabilities, we also ensured that proper security controls were in place.

ABM: Alaska is considered among the most "wired" or electronically savvy, states in the nation. In your estimation, does that demographic statistic correspond to e-banking use in the state?

Strutz: Not at this point. However, online banking is relatively new in Alaska. NBA's Internet banking was just introduced in September 1999 and it is growing rapidly.

ABM: When paying bills online, banks appear to offer two options: an electronic exchange...