HomeNet Notes: New England Lenders On-Line
by Stephanie A. Chisholm
In March of this year, Barbara Goodrich, executive director of the CMBA,Connecticut Mortgage Bankers Association, said that "We recognize theneed to provide education to our members," referring to the growingneed for training bank employees in on-line communication.
Ross Strickland, president of Webster Bank, is a technology pioneer.Webster is one of only five banks out of five hundred licensed lenders inConnecticut on the World Wide Web with their own site. Webster came on linesix months ago, offering existing customers a wealth of information. Mr.Strickland says, "We want our website to be user friendly. We wantto remain ahead of our customer's needs. The internet as a marketing mediumoffers Webster Bank the chance to be on the leading edge." Websterplans to announce its URL (internet address), www.websterbank.com to thegeneral public this summer through direct mail, print, television and radiocoverage and to existing customers through statement stuffers.
Mr. Strickland adds that, "I estimate our customer base at 290,000households in Connecticut. I would guess that one in five households currentlyhas internet access. Our average customer has 2.1 accounts with the bank,typically including checking, savings and mutual funds." Mr. Stricklandexplains that Webster anticipates a good degree of consumer doubt regardingsecurity issues. "Until the public can be convinced that account informationis protected and confidential on-line, we will offer a pre-qualificationworksheet which can be transmitted via fax or E-mail directly to the bank.We want to make sure that our customers are comfortable and that the systemis user-friendly." Karen Stopford, technology relationship managerat Webster Bank, says, "This is a multi-phase project. We see the internetnot only as an avenue to reach current customers with an interactive dialog,but as an opportunity to start new relationships. How does this map to ourmarketing strategy? It's kind of like an 'un-focused focus group.' It isa wonderful opportunity to touch base with our customers. Our goal is tomake what we have now more interactive." Ms. Stopford further expandson Webster Bank's commitment to the community, saying that "As a company,we are not just jumping on the internet because it's a fad. Webster grewup right here in Waterbury. We keep in close touch with our Connecticutcustomers. Our reach is getting broader and we see this medium as beingmore personalized. It's not 'in-your-face' advertising like on TV or radio.It's a natural for us."
Debbie Bochain, vice-president of residential lending at Liberty BankHome Lenders, recently commented on the current banking culture, "I'mbusier now than ever before. When I get to work in the morning, I alreadyhave at least 25 or 30 E-mail messages to answer. People can now leave messagesafter five, overnight, on weekends and on holidays...and they do! This newtechnology marks the end of traditional banking - with its reputation forlimited hours - as we knew it." According to Marie O'Neill in LibertyBank's marketing department "We want to explore the marketing opportunitypresented by the internet, but we are not ready to jump on the bandwagenjust yet."
Nora Suppers heads the residential lending department at Ridgefield Bank.She admits that she doesn't use a PC herself, but has recognized the needto adapt to the new technology. " We have hired a systems consultantto explore the internet technology. Ridgefield Bank will soon be on-line,we're just not sure when or how. Anthony DiCaprio, president of Family HomeMortgage Lenders in Danbury likewise confesses that he doesn't give E-mailaccess to his employees. Mr. DiCaprio, chair of the CMBA technology committeesaid, "We know that this is big, and we are looking into it. We justhave to do some research." Ron Shelton, president of Society Financialin Farmington is ready to jump in. During the month of March, he registeredhis company's domain: www.societyfinancial.com and is currently in the processof designing Society's homepage. "We should be on-line by April 1st.I am fascinated by this...we can't wait to see what kind of a response we'llget. We allocated funds previously set aside for print and billboard advertisingto jump on the internet."
Ironically, one member of the public relations department at BayBank's(www.baybank.com) headquarters recently shared that while the company hasspent hundreds of thousands on developing their website, the employees don'teven have an E-mail system available for their own use. "They say it'sa confidentiality issue. They are too afraid someone will crack the systemand gain access to confidential financial information. I think they areworking on a decoding system now, but from what I understand, it's stillin development. We're an 11 billion dollar bank, and we don't even haveE-mail!"