Wednesday, April 21, 1999
Ohio bankers prepare for Y2K
Consumers need convincing
BY JEFF McKINNEY
The Cincinnati Enquirer
One man in Cleveland took thousands of dollars out of his bank, buried it in his back yard and later discovered that his nest egg had been stolen.
And beware if a stranger asks for your bank account information and then tries to sell you a product, service or investment, assuring you that it can withstand any Year 2000 glitch.
Those are some stories bankers are hearing from consumers who fear that global Y2K computer breakdowns will keep them from their money.
Ohio bankers and regulators met Tuesday at the Federal Reserve Bank of Cleveland's branch in Cincinnati to dispel consumers' fears before 2000 comes.
The Year 2000 problem is a computer software glitch that could cause systems to fail at the dawn of the next century because they can't distinguish between 2000 and 1900 (they're programmed to read only the last two digits in dates). The problem is especially crucial for banks, whose systems are run almost entirely by computers.
Federal regulators said they will make an extra $200 billion available to ensure that cash is on hand for consumers should there be a rush on banks.
But bankers said their biggest challenge will be convincing consumers that the safest place for their money is in bank vaults — that they're computer systems are ready for Y2K and that they are doing everything they can to prepare.
Robert Elberfeld, vice president of information services at Firstar, said the industry has spent $8 billion preparing for the next century, and most of their systems are ready.
Customers' “biggest concern is whether they will be able to cash out — or even things like will we take the mortgage,” Mr. Elberfeld said. “But when we explain what we're doing, they feel better.”
Bud Burkle, vice president of banking supervision at the Fed in Cleveland, which oversees many local financial institutions, said about 95 percent of banks and thrifts are prepared.
He said that if consumers are concerned, they can contact the financial institution or its regulator to get an update.
STAYING SAFE
Tips for those concerned about their bank and money:
• Stay informed. Read the Year 2000 information your bank sends. If you have questions or concerns, ask your banker.
• Don't give your Social Security or bank account numbers over the phone, in person or by computer to anyone unless you're certain the one you are speaking with is legitimate.
• Keep good records of all your banking transactions, particularly months before and after Jan. 1, 2000.
• Check transaction receipts against statements.
• If you bank online, make sure that your computer and software are Y2K-compliant.
• Get a free copy of The Year 2000, Your Bank and You by calling (888) 878-3256 or at www.pueblo.gsa.gov.
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