PCS president calls service key to company growth

Northwestern Financial Review, Jul 1-Jul 14, 2002 by Bengtson, Tom

Regulators are emphasizing security as they examine computers and other technology at the nation's banks, said Bruce Christensen, president of Precision Computer Systems in Sioux Falls, S.D. The expanded use of the Internet is driving much of the security focus, Christensen said.

Although the rush to offer Internet banking services has stemmed, Christensen said bankers will come to view it as a necessary delivery vehicle for their products and services. About 100 banks use the on-line banking software provided by Precision Computers System.

About 170 bankers attended the 13th annual executive seminar hosted June 3 by Precision Computer Systems at the convention center in Sioux Falls. Christenen told the bankers the company expects to add about 50 new banks to its family of customers, as well as upgrade about 100 existing customers to new products this year. The company, which prides itself on customer service, receives about 100,000 calls a year at its support center. With 60 percent of the company's 220 employees working in the call center, most of those calls get responses the same day they come in, Christensen said.

In addition, Olympic athlete John Naber delivered a motivational speech at the conference. Naber, who won four gold medals and one silver medal in swimming at the 1976 Games, mapped out an eight-part strategy for achieving "gold medal performance:"

* Dream about what you want to do; * Commit yourself to making it happen;

* Establish clear, measurable steps to achieving the goal;

* Develop an action plan, with deadlines, for achieving the goal;

* Evaluate your progress by evalating your performance on each step;

* Work hard;

* Be prepared to overcome obstacles; and

* Be able to perform under pressure.

Christensen said he expects the privately-held Precision Computer Systems to generate $28 million in revenue this year, producing the 19th straight year of profitability in the company's 20-year history.

At the seminar, Christensen honored 58 banks that have been PCS customers for 10 consecutive years. He noted that from year to year, the company typically retains 99 percent of its customers, which currently number around 720.

"We are better positioned for the future than ever," Christensen told bankers. "A partnership between you and our company is our goal."

Christensen said technology companies generally saw increases in sales during the Y2K buildup. Current sales levels are lower but steady despite uncertainties created by the terrorist attacks of last fall.

Christensen said banks are likely to beef up their technological offerings as bandwidth improves, permitting banks to offer better service to customers. "In addition, prices are coming down on a lot of equipment," Christensen said.

Norm Meyer, PCS's national sales manager since 1991, is retiring and will be replaced by Chip Hortness, who joined the company in January after a long tenure at Burroughs Corp. Meyer said bankers have concerns about price and product life when it comes to technology. He said, however, that bankers are growing increasingly sophisticated about technology and what it can do for their bank.

Meyer, who pioneered a system at PCS to focus sales attention on existing customers, said satisfied customers make the company's products easier to sell. "If the banker down the road likes our product, that makes it a lot easier for a prospect to decide to work with us," Meyer said.

Christensen said the challenge for PCS is to maintain its high level of service. Traditionally a company that has focused on community banks, PCS recently has picked up some large bank clients. Christensen said the diversity in its customer base demonstrates PCS's ability to service a wide variety of customers. "A bank knows it can grow and not have to worry about switching providers because we are demonstrating we can service the large bank," Christensen said.

By Tom Bengtson