Y2K awareness continues to increase...Banks to communicate to customers:
BIRMINGHAM, Ala., Oct. 22 /PRNewswire/ -- Forty of the nation's largest
banks have developed a "Top 10 Awareness" list with information for consumers
about their bank, their money and the year 2000. In the face of so much hype
surrounding the year 2000 issue, this list urges consumers to take a common
sense approach to their financial routines; recognize that banks are closely
monitored; and be aware that the banking industry is considered to be a leader
with respect to year 2000 preparation efforts.
"Banks are working together and sharing best practices in an effort to
make it business as usual for their customers in the year 2000," said Clint
Swift, managing director of operations and technology at Bank Administration
Institute (BAI) in Chicago. The banks, which represent 70% of the nation's
banking assets, work together in BAI's Year 2000 Industry Forum. Through six
roundtable discussions a year; an active Internet discussion list; and working
groups that examine planning, testing, credit risk and other issues, the banks
have been sharing year 2000 strategies for 18 months.
Recognizing this cooperative effort, year 2000 expert Peter de Jager, "The
year 2000 problem is, and always has been, a potential crisis, a crisis which
could only become a reality if we failed to act. By coming together now, these
banks are acting to avoid a crisis. They've proven once again that rather than
bringing out the worst in us, a crisis brings out the best we have to offer."
The group emphasizes that the bank, where each depositor's accounts are
insured up to $100,000 by the Federal Deposit Insurance Corporation (FDIC) ,
is still one of the safest places for money when the century date changes.
Banks are being advised by federal regulators that they need to have
substantially completed their mission-critical hardware and software systems
by the end of this year. Supervisory agencies - including the Federal Reserve,
the Office of the Comptroller of the Currency, and the FDIC -already have
examined the processes that the nation's 10,000 banks have in place to deal
with the year 2000, or Y2K, challenge.
These banks developed the list to help consumers understand the year 2000
problem, because no business can be certain that every one of its suppliers
will be 100% ready. The complexity of the relationships among banks and their
suppliers creates the potential for some inconvenience for consumers, Swift
said. But he added that banks are focusing on potential points of failure and
updating contingency plans. Banks will be working with local communities
around the country to heighten year 2000 awareness.
The year 2000 computer problem was born decades ago when programmers coded
years in two digits to save expensive storage space. Thus, many programs
assumed the century digits to be "19", recording 1975 as "75". Without
changes, programs might interpret the "00" of the year 2000 as 1900, which
could result in incorrect calculations or even systems failures.
Here is the "Top 10 Awareness" list with information consumers should know
about their money, their bank and the year 2000.
Did you know that...
1. the Gartner Group, a Connecticut consulting firm, ranked the financial
services industry first in year 2000 preparedness?
2. federal banking regulators have issued extensive guidance on year 2000
issues to all banks?
3. many banks are working together to share lessons learned in an effort
to help solve the year 2000 problem across the industry?
4. banks keep backup records of transaction information? Consumers also
have backup information in the form of transaction receipts and
periodic statements on deposit, investment or loan accounts. It is
always a good idea to maintain proper banking records and in preparing
for the year 2000, there is no need to retain more than the usual
types of documentation.
5. the century date change does not affect your deposit insurance
coverage?
6. banks already have contingency plans in place? These plans identify
pre-defined solutions to handle many potential business disruptions
and are being updated to prepare for an orderly transition into the
year 2000 for bank customers.
7. if you use a personal computer to bank from home, you will want to
determine if the PC hardware and software is able to handle the date
change? Consider checking with the manufacturers of your computer and
software applications and ask them about their ability to handle the
century change.
8. if you own a small business, you should assess how the year 2000 may
impact your business? Some of the areas you may want to review include
your computer systems, equipment and vendors which provide a service
to your business.
9. many of the financial institutions, utility companies and governmental
agencies with whom you do business have year 2000 information
available? Websites are usually a good place to start learning about
the company's efforts.
10. local trade associations may need your help to be part of the year
2000 solution in your community?
Contact: Clint Swift, Bank Administration Institute, 312-683-2402,
cswift@bai.org
Additional contacts for participating banks are listed below:
BB&T
Bob Denham
Marketing & Public Relations
Winston-Salem, NC
336-733-2209
First Tennessee Bank
James W. Mays
Memphis, TN
(800) 355-6092
First Union National Bank
Natalie Pruett
Corporate Communications Manager
Charlotte, NC
704-374-4331
Hibernia
William B. Gautreaux
New Orleans, LA
504-533-2721
NationsBank
Julie Davis
404-607-5228
SouthTrust Bank, NA
Jean Colquett
Corporate Communications
Birmingham, AL
205-254-5523
Synovus Financial Corp.
Rob Ward
Corporate Communications
Columbus, GA
706-649-2531
Wachovia
Ed Hutchins
336-732-4200
ed.hutchins@wachovia.com.
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