Wednesday, May 17, 2006
Despite branch building boom, it may lie in high-tech services
Banks already reach into our homes, grocery stores, offices and cell phones, but there’s uncertainty about where people will bank in the future.
Some bankers think multiple banking tasks will be made on smart cards. Others think banking will be via video conferencing from computers.
Nevertheless, banks keep building branches even as they hedge their bets with ramped-up high-tech services.
“My guess is that (branch banking) is an endangered species,” said Anthony Ulwick, chief executive officer of Strategyn Inc., which advises banks on high-tech strategies. “People don’t want to go to banks … I believe in 10 years the people who are investing in (newly built) branches will wonder why they did it.”
Ulwick said his research shows many people want to skip bricks-and-mortar banks. Some even want to skip ATMs.
“We found people want to be able to print out money in their homes,” Ulwick said. “You can’t do that, of course, but you can download money onto a smart card … and not use cash at all.”
Such smart card technology doesn’t yet exist, but lots of virtual banking innovations have recently been unveiled.
Generally considered an innovator in branch and tech banking, Washington Mutual Inc. last week announced an online checking sign-up service — no paperwork required.
The bank is looking for ways to spark sales in the Chicago area, where it ranks 48th in deposits but fourth in the number of branches.
“People can open an account in five to 10 minutes, and it’s totally paperless,” said Stephen Rotella, president and chief operating officer of Seattle-based Washington Mutual. “It’s absolutely a sales tool for us.”
Still, even Washington Mutual, with its 167 local branches, is opening 15 more branches in the Chicago area this year.
Buffalo Grove resident Richard Kerbis heads the regional office for Wells Fargo & Co. in Chicago. The biggest home mortgage holder in Illinois, Wells Fargo still has no local branch banks.
Much of the way it manages accounts — mainly for mid-sized businesses with $10 million to $500 million in annual sales — is via the Internet.
One of its offerings is remote check capture, where businesses can feed a customer check through an electronic reader and have it registered by Wells Fargo, not by a third-party provider. The paper check can then be discarded.
“If you wanted to measure what the hottest product is for us, it would have to be that,” said Kerbis, whose bank recorded $30 billion in check transactions in the past year, its first year of operation.
High-tech services vary by bank, but all have some offerings.
Currently, TV commercials for Chase show a mother getting cell phone alerts when her daughter uses her debit card.
LaSalle Bank is installing ATMs that talk to customers in different languages, offering stamps and other services. It plans to add 100 ATMs this year in the Chicago area, bringing it to 500 ATMs and about 140 branches.
Still, bank industry statistics show a major shift in the industry may be years away, as many customers still fear security issues online. Eight million new customers signed up for online banking last year in the United States, but in the latest quarter the pace slowed.
Harris Bank spokeswoman Jen Dillon said she remembers when bankers predicted an online onslaught, but it hasn’t materialized yet.
“We found our customers want both kinds of service — bricks and mortar and online,” Dillon said.
Harris aims to double the size of its branch network in the coming years to more than 400, but it already has more than 500 ATMs.
Online, Harris offers a “Push to Talk” link, which when clicked upon has a call center contact the customer’s phone to verbally assist.
Another way to mix high-tech service with human interaction is Silicon Valley-based Avistar’s “Expert on Demand.” This service will video-conference licensed mortgage brokers or investment brokers to retail bank locations. Banks often lose customers who don’t find a licensed broker on duty when they visit a branch. The video conferencing is high-tech but incorporates face time, too.
Davies Molding in Carol Stream has a check reader from Wells Fargo, which comptroller Robert Istok said changed his job. At 55 years old, he remembers the days of the old 14-column accounting sheets and adding machines.
He said the lack of nearby Wells Fargo branches doesn’t bother him. And he doesn’t miss the face time.
“In general, in the old days, we’d get together with the bankers and have lunch or play golf anyway,” Istok said. “This way is more efficient, more proactive.”
Thursday, May 04, 2006
(ARA) - Depending on who you listen to, the burst of the housing bubble is either imminent or somewhere down the road. But all financial and real estate experts agree that it is inevitable.
One way for homeowners to minimize the coming dip in their property value is to invest now in home improvement. While interior improvements to kitchens and baths are top equity-builders, homeowners shouldn't overlook the exterior of their houses.
"Exterior home improvements add to home value by increasing both the home's durability and curb appeal," says exterior home improvement expert Scott Seiler of ABC Seamless. "Work done on your house's siding, roof or landscaping can offer appreciable returns when it comes time to sell the house."
Five common equity-building exterior improvements include:
1. Roofing - "This is a top area of concern for many potential home buyers," Seiler says. "An old or damaged roof can cause huge headaches if not taken care of." The average asphalt shingle roof (now installed in four out of five new homes) should last about 15 to 20 years. Metal, slate and tile roofs will last significantly longer. All need regular maintenance and repair to maximize their lifespan.
Check the integrity of your roof every year, at least once a year, more often if you live in a particularly harsh climate, and certainly after every significant storm. High winds and hail can cause considerable damage to even brand new roofs.
2. Deck/patio - Creating an outdoor living space is one of the hottest trends in exterior home improvements. If your home currently has no deck or patio, adding one can be a low-cost way to increase your warm-weather living space. If you already have a deck or patio, consider dressing it up with additional "hardscape" items such as a built-in bench seat, gazebo, arbor, pergola or awning.
3. Landscaping - One of the first things potential home buyers will notice about your house is the landscaping. "To maximize the value landscaping adds to your home, you must walk a fine line," Seiler says. "If your lawn looks like you've never watered, mowed, weeded or fertilized it, a buyer may see it as too much work to bring it up to snuff. On the other hand, if you've gone overboard with shrubs, floral displays and excessive plantings, it will also look difficult to maintain."
The best bet is to keep lawns cut and patch any obvious bare spots, keep shrubs neatly trimmed and plantings to the minimum needed to enhance your home's curb appeal.
4. Sheds/Garages - Americans notoriously love our stuff and we always need more space to put it. Often, yard work equipment and patio furniture wind up stored in the garage. Consider adding a shed. You can either hire a professional to build one for you, purchase a do-it-yourself kit or opt for a pre-made plastic shed. Whatever shed you choose, the important objective is to contain outdoor clutter that might detract from the house's curb appeal.
5. Siding - Wood, fiber cement, vinyl, brick, stucco and aluminum are the most commonly used siding materials. Periodic painting is required to maintain the appearance and efficiency of wood, fiber cement and aluminum siding. Vinyl siding needs no painting, but can crack in extremely cold temperatures or leak at the seams where panels meet.
Seamless steel siding is the only siding option that eliminates both the need to paint and the risk of cracking or leaking. "One of the biggest benefits of this product is its longevity," Seiler says. "The seamless quality eliminates any opportunity for moisture, dirt or bugs to get in. The siding never needs to be painted or stained. The color looks as good after 20 years as it did when it was first installed."
To learn more about how seamless steel siding can add value to your home, visit www.abcseamless.com
