MANAGEMENT AT Vancouver City Savings Credit Union knows the value of providing a high level of service and the use of technology to get the job done.
But, instead of focusing on the installation of the latest and greatest technology, management has focused on the actual business application.
In doing so, it has created what it believes to be a strategic plan for the future. The result is the installation of a branch automation system and the ability to provide better customer service.
"Rather than buying into the latest fad, then trying to figure out how to use it, we look at what we are trying to achieve from a business perspective and we find the technology solution that takes us where we need to go," said Richard Wafer, vice president of information systems. "The key is to develop and implement flexible technology that anticipates, or could react quickly, changing business needs."
VanCity, as the credit union is commonly known, is the largest in Canada with more than $3 billion (U.S .) of assets and 28 branches.
Within the last year, the credit union has been developing and installing client-server technology to automate its branches. The result has bccn a more efficient operation and a higher level of customer service.
Over the last five years, the credit union has completely rewritten its long-term technology strategy. Whereas in the past VanCity had different systems for different business purposes. it is now building an architecture that relies on one network of completely integrated solutions.
"We want to be able to replace and/or add systems as quickly and painlessly as possible," said Mr. Wafer. "There are two keys to our technology strategy: the network and its capabi lily and how the systems communicate across to the branches."
As part of the credit union's strategy, it has teamed up with Maynard, Mass.-based Digital Equipment Corp. to develop and implement client-server technology.
The credit union has installed Digital's Decbank Financial Business System, which provides tellers and branch personnel with the tools for the production, deployment, and delivery of retail financial services through a link to personal computers that operate in a Microsoff Windows environment.
The network is connected to the GEAC 9000 mainframe at credit union's home office for storage and general ledger information.
"It is a fully redundant network that carries voice as well as data," said Mr. Wafer. "All of the software in the network follows the same messaging standard from mainframe to personal computers -- which enables us to remove outdated technology and plug in new technology very easily."
David Medeiros, an analyst at the Tower Group in Wellesley, Mass., said that by building a network between branches, banks or credit unions can put into place the tools to distribute customer information with ease.
"Installing networks is a very big growth area in the industry," he said. "The use of networks provides the branches with an outlet for customer information and the ability to serve the clients more efficiently."
One of the real benefits VanCity has seen with the network is the ease of installation -- along with ease of use to the credit union's staff.
"The conversion from our old system to the new one has been very positive," said Mr. Wafer.
In fact, he added, once the new system was installed in a few test branches, the remaining branch managers insisted that they get the system next.
The logic behind the bank's installation of the network is twofold. The network has been designed to work with virtually all systems so that new technology can be added with ease. It has also been designed to be installed in the branches with relative ease regardless of hardware being used.
Once a teller transaction is conducted, the network stores the data and puts it into a file to update the credit union's general ledger in the evening through the link to the mainframe. "It is a fully on-line real time system that does not use memo posting," said Mr. Wafer. "Every member of the credit union can conduct business at any branch, which is a direct result of the system because it provides complete interbank capability."
As VanCity continues to pursue the use of technology and expand its use of the network, it will be rolling out a maintenance function that will provide the branches with a customer information file system and an alert function for when term deposits and mortgages are coming due.
The credit union also plans on exploring the use of imaging to allow tellers to verify signatures on screen and store customer information digitally. Plans also include using the technology to capture loan documents and applications as well as retirement savings plan information at the branch level.
"We will be able to transmit information back and forth from the home office and branches as well as branch to branch, which will allow us to speed up the level of customer service we can provide while increasing the efficiency of the operation," said Mr. Wafer. "Our goal is to take the client-server platform and make it the front end of our entire operation including our front office.
"Change is not only inevitable but it is also going to come more rapidly then we expect," he continued. "As a business, we have to be ready to change with change and embrace it as part of our being."
