Come crunch time, banks are still relying on the mainframe.

BANKERS ARE LOOKING more and more to personal computers to improve customer service, but the vaunted PC has yet to make much of an impact in the back office, where the mainframe continues to rule.

According to the American Banker/Tower Group/Andersen Consulting 1994 survey of technology in banking, personal computers are increasingly being used for new applications that deal with customer contact.

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But mainframes and midrange systems are still the primary hardware for big number-crunching tasks such as balancing savings accounts or processing checks.

Chase Manhattan Corp.'s chief information officer, Craig D. Goldman, said that although the banking company is trying to take advantage of the PC's servicing and application power, it has not moved away from mainframes and does not plan to do so for the foreseeable future.

"The use of the mainframe continues to grow and will grow because it does somethings better than the personal computer," Mr. Goldman said. "In some cases it is difficult to trust the personal computer over the mainframe."

The survey of 150 of the top bank holding companies in the United States, representing 43% of the industry as measured by noninterest expense, showed that personal computers are being deployed mainly for customer service, as well as management and control tasks.

Bankers say the activities are made more efficient through PC software that is relatively easy to master, and hardware that can be easily upgraded as business needs change.

When it comes to delivering customer service functions through branches or telephone call centers, PCs now dominate. The survey found that 29% of respondent banks are using PCs for client service delivery while 16% use a mainframe for the same tasks. About 23% said they are using minicomputers.

Despite a push to so-called client-server computing, where networks of PCs replace mainframes or minicomputers, banking companies are still mostly committed to the idea that a mainframe is the right tool to collect and process data while a personal computer is the right tool for interpreting and working with the data.

Currently, 39% of larger banks use mainframes to process their financial products, and 44% use minicomputers, while 22% use PCs.

Stephen Ciambrone, a senior vice president at National Westminster Bancorp in Jersey City, said the $25 billion-asset banking company is focusing the future of its information systems on personal computers.

"Our strategy for office automation is to provide general automation through personal computers," he said. "We are taking a hard look at the local area network and feel that we can centrally manage our business units through the PC."

Natwest has been installing a network of personal computers, about 240 a month, on a department-by department basis instead of in one fell swoop, Mr. Ciambrone said.

Mr. Goldman said the personal computer is "the bread-and-butter tool" for Chase's $112 billion-asset operation.

The New York money-center uses more than 29,000 personal computers worldwide, all of which are connected through a series of local and wide area networks.

"The PC is the primary vehicle we are using for desktop distribution of applications and messaging," Mr. Goldman said. "It provides us with global customer servicing."

Mr. Goldman said that despite their ability to store and process huge amounts of data, mainframes are not capable of the day-to-day applications like word processing and spreadsheet programs found on PCs.

"All of the new growth in applications is coming in the shape of desktop software," he said. "In order to stay competitive we must continue to expand our usage of the personal computer."

There are, however, some security concerns associated with the continued growth of PC use.

"As we continue to provide access and move information we need to ensure the systems are secure," Mr. Goldman said. "With a mainframe, we know there is one way in and one way out, but with a personal computer there are many opportunities for access and we need to make sure all of them are secure.

"We have a long way to go before we meet the sophisticated controls of the mainframe," he continued.

Cincinnati-based Provident Bancorp has had a great deal of success implementing personal computers in its operation.

Over the last four years, the $4.7 billion-asset banking company has changed its management strategy - increasing PC use to augment its mainframe-based loan and trust accounting systems.

Senior vice president Roland E.Koch said the bank has thus been able to diversify its processing platforms and the integration of solutions.

"The personal computer caused us to reorganize and has solved problems while making our operation more efficient," he said.

One of the problems that Provident faced was how to put all of the information stored on its mainframe into practical use.

"We had everything we needed but were faced with problems of integrating the data with our day to day operation," he said. "By using a personal computer, we can access the information and use it to increase our competitive advantage."

Mr. Koch said he sees the mainframe as a tool for processing and analyzing data while the personal computer provides the flexibility and ease of use to present and work with the information.

Huntington Service Co., a subsidiary of Columbus, Ohio-based Huntington Bancshares, has installed 4,000 PCs over the last two years in the $16 billion-asset banking company.

"All of the bankers that work on the retail side are using personal computers with a ratio of two people for every machine," said Rick Sellers, president of the service company. "By using PCs, we have the option of selecting the most cost-effective computing platform."

Huntington has started using personal computers, including laptops, as part of the reengineering of its commercial lending operation.

"We have been able to speed up our processing and loan approval times by using personal computers," said Mr. Sellers. "Some of our lenders are able to take applications and start processing the information from the field by using laptops."

Mr. Sellers said the theory behind the bank's use of personal computers is to extend the capabilities of its mainframes through the use of client-servers and local area networks.

"We are not going to replace our mainframe system with personal computers," said Mr. Sellers. "But, what we are going to do is use the information from the systems more effectively in many areas of our operation.

"The option of using a personal computer allows us to pick and choose what is the best system for the application," he continued.

"The mainframe is the best tool for high-volume processing, while a personal computer is the best tool to understand the data. By using both, we have the best of both worlds."

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