During the last 12 months, we’ve seen the leading financial institutions busily building solid second-generation Web sites. We’ve dubbed this the Utilitarian Phase, where banks take the functionality of their call centers, and port it to the Web. But, beginning slowly this year, and more so in 1999, financial institutions will enter a new phase, one we’re calling the Wow! Phase (until we think of a better name).

Financial information providers will begin harnessing the power of (virtually) free and instantaneous digital connections to their customers to create exciting personalized services; the kind of breakthrough products, like ATMs, that will have users reminiscing in the year 2005, “Wow, how did I ever manage without that?”

A few banks, credit unions, and technology companies are already experimenting with third generation Webs. The most notable examples are Bank of Montreal’s real-time mortgage approval implemented with assistance from American Management Systems, and

Signet Bank’s Notify Me, balance notification built using Edify’s Electronic Banking System (see table next page).

Edify and AMS may have the early lead, but by mid-year most bank technology vendors will be providing third-generation tools and solutions. So no matter who handles your core processing, you’ll be able to buy an off-the-shelf solution for 1999 that instills that sense of “wow” with customers and employees.

Source: Online Banking Report, 1/98