KeyBank chief: Smarter use of the Web needed

CNY Business Journal (1996+), Oct 24, 2003 by Rombel, Adam

CORTLAND - KeyBank's head of electronic banking told a crowd of local businesspeople that the widespread use of the Internet presents a challenge to companies, and requires them to be as savvy about the medium as their customers. Swanick spoke to about 50 people at a business breakfast hosted by the Cortland County BDC/IDA and Cortland Chamber of Commerce at the Cortland Country Club Oct. 21.

"We have to train our people a lot better. We have to make sure our people are as sophisticated as the clients who've researched the products and services online before coming in," said Patrick J. Swanick, president of Key Electronic Services, which oversees the bank's online banking, ATM, debit card, and billpayment initiatives.

Swanick told the attendees that the Web has now become part of the mainstream, with more than 60 percent of U.S. households actively using the Internet, about one-quarter banking online, and about onethird buying goods and services online. And, many more than that use the Internet to research products and services before buying them in a store or showroom. The result is a more-informed, demanding customer that may want to do business at any time of the day.

Before appearing for his speaking engagement, Swanick did a little research of his own on the audience. He said he called the main numbers of each of the attendees' companies after regular business hours. What he discovered when listening to the firms' tape-recorded messages was that none of them directed callers to the company Web site.

"If there's a way to get [customers] an immediate answer, to satisfy them, and to get them into your company, well, your Web site is available around the clock," said Swanick.

Other practical Web suggestions Swanick offered the crowd included: enabling customers to service themselves online for routine inquiries such as a change of address; highlighting the "Contact Us" button in the same place on every page of a company's Web site; and, asking customers, employees and one's own techsavvy children what they think about the site.

Swanick also urged local businesses to avoid common Internet pitfalls by focusing on their core business while building Internet capabilities, by not getting enamored with the technology, and by closely watching how much they spend on Web initiatives.

KeyBank, which launched its Web site in 1996, now has 37 percent of its nearly four-million customers banking online. That exceeds the 25 percent, bank-industry average, noted Swanick.

About 21 percent of Key's customer transactions are conducted online, compared to 38 percent at ATMs, 31 percent at bank branches, and 10 percent over the phone.

In 1995, before the bank went online, branches accounted for almost 60 percent of transactions and ATMs almost 30 percent. In 1995, the bank had 1,250 branches.

Swanick said the bank's initial Internet strategy focused on offering online services to keep customers from going to the competition. But about two years ago, the bank shifted its focus more toward crossselling its various financial products to current customers and to attracting new clients.

KeyBank operates 900 retail-banking branches in 12 states, including more than 40 branches in Central New York. It recently opened a new branch in Fayetteville.