Better Banking Through Technology

Atlantic Southern Bank, a US$824 million-asset institution in Macon, Ga., that opened in late December 2001, decided to automate the way it reviewed its financial numbers by signing on with Banker's Dashboard, a Stockbridge, Ga.-based provider of automated reporting and financial analysis. The results were immediate.

"You can look at specific regions throughout the state, and you can really see what your loan officers are doing in each area. It's probably cut our chief financial officer's time in half, in terms of preparing board reports and month-end reporting. It's just point and click, and it's so easy to read," said Mark Stevens, chief executive officer of Atlantic Southern Bank.

Quicker Turnaround

At First Chatham Bank, a $470 million-asset institution, in Savannah, Ga., automation has also played a role in reducing the workload. "With automation from Banker's Dashboard, we can put a board package together in 30 minutes, where other banks are taking three to five days. It's instantaneous wherever you are," said Brian Foster, chairman and CEO of First Chatham.

Branch automation, according to Chris Bledsoe, CEO of Banker's Dashboard, is all about presenting information in a clean and logical way. "There's no value to manually crunching numbers; the real value is in analysis. What we do is automatically crunch the numbers, and then let the bankers become analysts," Bledsoe said.

Automation can also help improve the overall efficiency of a bank staff. "Our automated reports allow banks to see their weaknesses and see who they need to coach up. It's all about accountability. Finding good people is not easy; its like finding a good pitcher in baseball," he said.

With the goal of improving employee efficiencies and boosting customer service , banks are turning to automated systems, which provide employees with a horizon-sweeping view of operations.

Automating the Lines of Defense

At most community banks, employees are forced to wear a number of hats. A typical employee might have responsibilities for overseeing a bank's IT infrastructure as well as maintaining overall security and helping out on the mortgage side. In this situation, staying on top of a constantly fluctuating Internet threat level can prove difficult. Symantec (Nasdaq: SYMC) , a Cupertino, Calif.-based provider of security, storage and systems management solutions, recently rolled out the Symantec Solutions for Windows portfolio, which can help banks protect themselves through a combination of automation and integration.

"Small and medium-sized businesses are really our market here. Our Backup Exec solution, for example, is perfect for community banks with small IT budgets. One of our products, the Symantec ThreatCon, is really a bit of a widget that can automatically indicate the degree of elevated risk on the Internet. Its integrated with our Backup Exec product, and as the ThreatCon level goes up, so does the frequency of automatic system backups," said Kevin Murray, a vice president at Symantec.

Tellers can also use automation to take part in defending their banks. A number of vendors offer positive pay products, which allow tellers to input a check and receive a real-time "pay or don't pay" prompt. CheckFree, a provider of electronic commerce services that was recently acquired by Fiserv, offers a teller positive-pay module, which can assist a teller in real time. Once the check has been submitted, a payment recommendation will be given to the teller based on rules that can be created by the bank for each individual account. As an example, if a fraudster tried to pass along a forged check that was identical to one that had already been cashed, the teller would receive a do-not-pay message and would then be alerted to contact security.

Banks can also use automation to stay in compliance with various regulations, specifically the Bank Secrecy Act. Integrated Bank Technology, a provider of banking software solutions based in Cedar Park, Texas, works with banks to keep an eye on individual transactions. Transactions of more than $10,000, for example, have to be reported, but money launderers often spread their money over several transactions, so as not to surpass the limit. "Without tracking, people can come in with $900 transactions, and it won't get caught. It's disturbing, especially in light of 9/11. We're taking information, and aggregating every transaction, so we know which transaction takes us over the regulatory limit," said Mark Dittman, CEO of IBT.

Welcoming the New Teller Line

In a quest to increase the efficiency of frontline staff, community banks are turning to teller check-capture devices. Farmers National Bank, a $337 million-asset institution in Prophetstown, Ill., finished installing a teller item capture solution in late February. After a three-year vendor search, the bank settled on Integrated Bank Technology.

When a check is presented at the teller line, it is scanned and automatically balanced, and customers can see their check image immediately through online banking. A customer's account balance is also updated in real time, and the check images are sorted by customer and made ready for inclusion in image statements.

During the three-week installation period, certain tellers took part in the training process, and once the solution was fully launched, they were able to train the rest of the staff. Since the bank has gone live with teller capture, it has been able to eliminate its bookkeeping department, moving the three employees into new jobs. "I am convinced we have a better system in place for no additional cost. We have a much more efficient operation and increased funds availability, while also reducing the number of departments," said Gary Cangelosi, cashier at the bank.

Sterling Savings Bank, an $11 billion-asset institution in Spokane, Wash., has also been bringing automation to its teller line. In February, the bank announced that it would be installing Goldleaf Financial Solutions' Sierra Xpedite teller deposit automation solution.

As a result, tellers won't have to manually input check data and can focus on the customer instead of the check. Transactions will also be able to be posted immediately.

"We were looking for a solution that would improve our customer experience at the branch while meeting our Check 21 objectives of capturing and clearing checks intraday. This would substantially reduce our IP expenses," said Kade Peterson, senior vice president and banking support director at the bank.

To IBT's Dittman, automating check deposits at the teller window is a win for customers and bank staff. "For community banks, it can improve costs and efficiencies and cut the overhead. Deposit capture really needs to be real-time, so a customer with a laptop can see his check image appear right after he's deposited it," he said.

Some banks are taking automation even further, changing the way customers relate to tellers. With SI's Enterprise Teller application, for example, bank tellers can receive real-time alerts during transactions, telling them a variety of information, from a reminder that an online payment is due to a notification that an account balance is low. Tellers can also receive customized marketing messages tailored to the individual customer.

Saying Farewell to Paper

Beyond boosts in speed and overall efficiency, branch automation can lead to sharp reductions in paper. "Our branch renewal solution allows users to continue doing business as always, but when they go to print, the document gets imaged. It's a virtual print driver," said Joe Pitzo, enterprise content management product manager at Wausau Financial Systems, a Mosinee, Wis.-based provider of payment and receivables processing solutions.

"It's got a number of uses, including new account openings, human resources and the teller line. The goal is to let the employee work as usual," he said. "We can't eliminate all paper, of course, but we've seen big savings in courier fees, paper and toner."

E-statements are another area where automation can help bank branches cut down on their use of paper, while at the same time boosting customer convenience. Bank of the West, a San Francisco-based $61.8 billion institution, selected Systemware in 2007 to provide electronic statements. Using Systemware's Centraspect FS for Electronic Statements solution, the bank can re-create the look of a paper statement, giving customers immediate access to current and historical statements. The technology can also be used at the teller line or by other front-line personnel, allowing staff to access specific customer statements.

According to Laurie Callagy, vice president and eTimeBanker product manager for the bank, "We felt it was imperative to provide convenient, efficient and secure access to important banking information online." And that's the stuff automation is made for -- convenience, efficiency and security.