Boeing Group's Home Banking Is Taking Off
Arndorfer, James B., American Banker
Boeing Employees Credit Union flirted with introducing home banking for a year before finally going live on Oct. 1.
Making a commitment seems to have paid off for the Seattle credit union, the country's fourth largest. In three months, nearly 5,000 of its 180,000 members have signed up and demand hasn't let up yet.
"The timing is right for home banking," said Patty Schwendeman, vice president of management information services for the $1.9 billion-asset credit union. "It was a little ahead of its time when the banks first introduced it years ago. It's not as intimidating as it used to be."
Boeing Employees is one of fewer than 60 credit unions offering home banking services, but industry observers and officials expect more institutions to hop on the bandwagon -- and soon.
"Home banking is probably the next delivery system topic on evey credit union agenda," said Charles Filson, president of Callahan & Associates, a Washington-based consulting group.
Mr. Filson said he expects credit unions initially to concentrate on offering personal computer banking rather than screen phone or interactive television technology.
Most credit unions with more than $50 million of assets will consider adding such technology within the next 12 to 18 months, he predicted. There are about 1,000 institutions that size.
The industry will spend $7.6 million purchasing personal computer-based home banking systems in 1994 through 1996, according to the Credit Union National Association. That would dwarf the $399,000 credit unions spent from 1991 through 1993.
And Robert Jensen, national sales manager for electronic banking products for Portland, Ore.-based CFI ProServices Inc., contends that the $7.6 million figure is too low. He noted that CFI, the largest provider of home banking systems for credit unions, claimed more than 30 credit unions as customers during 1994.
Fear and cost-cutting are two forces driving the industry's movement toward home banking. …