Not Quite Full-circle

I do a lot of reading to stay as much "on-top" of what's happening in the banking world as possible. And it is with some interest I've been following the advent and growth of the computer and its gradual takeover of our systems and procedures.

I was around back in the dark ages when it was first made accessible to the front line. A dumb terminal, but it was wonderful to us, because we could now pull up information on a screen right at our desk instead of going to the records room and hauling out huge transaction books and journals. Well, at least we could get it unless the main frame was down- or a new program was being installed-or management changed its mind about which system it was going to use-or we acquired a financial institution with a different system?but some of the time it was great! (My publisher/computer expert partner tells me that my lap-top has more power in it than that huge main-frame had! No wonder it was "down" so often!) In the over ten years since I worked full time in a financial institution, the Personal Computer (PC) has taken over. You can really DO things on the PC. Some of the paper disappeared from your desk.

Inquiries and entries and completion of forms became easier and quicker. Even better, by today it seldom goes "down"and becomes unusable. (And one of the reasons we like it may even be because you can play solitaire on it when you're having a slow day in the branch office!)

On the downside to everyone having their own computer, according to a recent article in American Banker about the subject, is the cost. The writer of the article claims it costs somewhere about $3,000 or more for each PC installation, while system maintenance, upgrades, and other expenses can amount to $12,000 per desk-top per year.

So now we're ready for the next step-Java Enterprise Computing. Many computers (called Network Computers or NC) can access a central network server. We've almost come full circle, but not quite, because the NC is not a dumb terminal. It will do everything your PC does, but can cost a lot less,(about $500 according to the writer) and the upgrades, etc. will all take place on the network, and be available to all users.

What a concept!

Actually, it's exciting to observe the changes and improvements in the way we do business. The financial industry is one of the fastest changing, most forward looking of any in the United States. And the computer (PC or NC) makes it possible for the smallest of the financial institutions to be competitive with the largest.

Direct deposit, bill paying, balance inquiries, e-mail, FAX-none were even thought of when those first dumb terminals were installed. Now full financial services on the Internet are just over the hill. Makes you wonder what could be coming next, doesn't it? What exciting times!

One last thought-if you happen to be one of the NC users-I don't think I'd look for solitaire from the central network server if I were you?

Copyright © 1996 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 6, No. 12, 11/96