Star Wars Banking

Bankers Will Need "The Force"
Your bank customer pulls up to the gas pump to fill the tank. He gets out, takes off the gas cap, puts the nozzle in, fills the tank, puts the nozzle back, puts the cap back on - and drives away. Stolen gas?

No.

There is a tiny radio transponder on his key ring that automatically transmitted identification information to the pump, which in turn transmitted that information to the bank, and before he drove away his account had been charged for the gas purchase and payment already remitted. He can also use the same system (called EZPass) to pay his toll on the bridge on the way to work.

A young woman walks up to the ATM with her paycheck. She endorses the check. Puts it in the ATM. And it gives her the cash. No PIN. No buttons pushed.

Machine malfunction?

No.

The ATM recognized her face, and so cashed the check for her, in the correct amount down to the penny, by reading the check when she put it in the machine.

And There's More ...
A man picks up the phone, calls his bank, instructs the interactive voice response software to pay a bill, and it does. It recognized his voice, and charges his account and makes the payment simply by that voice identification.

You make it to the airport on time, go to the gate, wave your hand at the small machine at the end of the entry ramp and board the plane. The flight attendant smiles and offers you coffee after you're seated. All your boarding information was loaded in the chip in your watch.

And More ...
Your biggest retail customer is delighted with your new ATM. Located in a secure lobby just outside your main office door, it combines an automated teller machine, an after-hours depository and rolled coin dispenser all in one. He can now deposit any combination of currency and checks and withdraw currency and exchange bills for other denominations or coins as he needs them without waiting in lines for a teller. He can also buy or reload his phone and his smart card there.

Your spouse goes shopping and pays for the groceries with a check. The clerk takes the check, puts it through the point of sale machine, it reads the information on the bottom, debits your account, credits the grocer's account and the sale is done. The clerk hands the voided check back as a receipt. You decide that next time you'll use the ordering feature on the microwave in your kitchen to order your groceries delivered. You already settle your statement there.

And More To Come
The functions described here are already in place, and soon will become commonplace. And these are only a few of the recent developments in our business. There's more coming! You won't have to be C3PO to do your banking in the future - though it might help!

There has been a lot of talk lately about Y2K. But tomorrow's banker has to be looking way past Y2K. No matter what your position is in the financial institution, the new technology and developments will affect you.

Branch Work
Branch folks are going to be the ones to sell all the new "stuff", and in order to sell it you have to know how to use it. There's going to be a lot of learning going on here, so that you can explain the new products and answer all the questions that will be coming at you.

Operations
Operations people - look at all those transactions that will be done with the speed of light! And if something goes wrong with any of them, it's going to be up to you to solve the problems. In order to do that, much research will have to be done in order to become familiar with the processes and functions - and to know what can go wrong with each one. You may be sure, operations, that if it hits the fan, you're going to be the one that will be expected to clean up the mess!

Compliance
Compliance officers now have even more worries. Internet access and privacy issues are already causing us to take a good look at the improvements and increased service functions we're offering. It's going to take a lot of work to stay on top of all the "new and different" products and services our marketing folks can create. But it is a very necessary chore.

Security
It used to be a security officer had to worry about locks and alarms and over-the-counter-jumpers. Then check fraud became "big business", just before loan fraud. Then along came money laundering, privacy issues, internal theft, ATM scams, kiting, regulations, compliance, prosecution and public relations problems. And now the immediate headache is Y2K and the security issues that go with it. Beyond Y2K are the accompanying opportunities for fraud in all the new services. Just imagine what can go wrong in the scenarios above!

Auditors
Auditors - where do you start?! You'll have everything to oversee. And then have the dubious privilege of explaining the whole thing to management!

Human Relations
Our human relations folks are already anticipating our needs by hiring computer-conversant employees who are comfortable with the new technology. Many of our periodicals are adding articles and information to help keep us informed. And many of our people are taking courses in computer science and electronic capabilities.

Our Part
We know our bankers cannot only keep up with the new developments, but also stay ahead - and even come up with their own. And there's no doubt they can handle the new demands that will be put on them. We'll be doing our part too. We read all those articles! Be assured that BANKERS' HOTLINE will do all it can to keep you as up to date as possible. We'll stay on top of new technology so that you'll stay on top of it. That's one of the ways we're here for you!

Copyright © 1999 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 9, No. 8, 9/99