Y2K kick, The

Northwestern Financial Review, Nov 22, 1997 by Bengtson, Tom

I was advised recently that I don't have to worry about the Year 2000 problem. "Take it easy," I was told. "Jan. 1, 2000 falls on a Saturday; you'll have the whole weekend to solve the problem."

I didn't pay for that advice and you generally get what you pay for. Like most people with computer systems in their office, I am working on it now, even with more than two years to go before the magic date.

Whether its a circulation system that keeps track of magazine subscriptions, or a bank system that keeps track of balances in thousands of savings and checking accounts, the potential for computing problems come 01-01-00 is huge. Bank regulators clearly are taking the issue seriously. The Federal Reserve sent a shiver through the industry last week when it issued a cease and desist order to a Georgia bank that it said has significant Year 2000 compliance problems. Nearly every bank exam during the next 12 months will include questions about the bank's Year 2000 preparedness.

NO BUSINESS OWNER can rely on vendors to solve the problem for them. Some shady vendors are assuring their customers that everything will be okay, secretly knowing they will be out of business and out of town long before Jan. 1, 2000. As business owners, we have to seriously discern the vendors we can trust from those we cannot.

This means that bank presidents and other business owners will have to become intimately knowledgeable about the computer systems in their institution. Some members of upper management have been able to put this off, even though computers have been in the office for 20 years. Whether it's a matter of teaching an old dog new tricks, a phobia or simply a dislike for computers, many senior managers today purposely avoid computers. That's going to have to change. There is no way a business manager is going to move smoothly into the next century without knowing his or her computer system backwards and forwards.

IN ONE SENSE, the Year 2000 problem might actually end up being good for the banking industry. By forcing the ranks of senior management to gain a greater understanding of computers, they may become more open to computerized business solutions. For example, 30 million Americans currently use the Internet but less than two dozen banks offer Internet banking. Why? Because a lot of bankers are still uncomfortable with the technology, even if their customers like it.

The Year 2000 problem might be just the kick in the rear that many bankers need to move them into the next century in terms of utilizing technology in a way that will mean something to today's consumers.