Executive gear

This month, we talk with Michael Stevens, president of $208million Hemlock Federal Bank for Savings in Oak Forest, Ill., and with James Varney, CEO of $49-million Custer Federal Savings Loan & Trust in Broken Bow, Neb. Both executives agree that the future lies in home banking.

And since September means back to school and the advent of the football season, we asked Stevens and Varney to

roll with us down memory lane to discover what colleges they attended and what kinds of technology they used back in their school days. Both men were educated in the Midwest-- Stevens went to DePaul University and Northwestern, the proud home of the Wildcats, and Varney attended Hastings College, which is Broncos country, and their views on technology are similar.

What products are indispensable for today's banking executive?

Stevens: You need a PC. I think it's also important to have a hand-held organizer, Internet knowledge and access, e-mail and fax capabilities within the executive's office. I use Dell computers at home and at the office, a Palm-Pilot, and a Microsoft Scheduler.

Varney: The Internet, a computer, a telephone and a fax machine. We use Gateways here, primarily because their factory is close by and we buy direct from the factory.

Which new products will become common in the next millennium?

Stevens: Internet and home banking are in the future.

Varney: Banking at home and debit cards. People don't have time to wait in lines at the bank.

What technology does your bank use to enhance customer service?

Stevens: We're a small bank and have a limited amount of funds, but we have just switched over to a customer information file oriented platform system. The CIF system provides demographic data about our customers such as age, marital status and number of children so that we can match our products and services to what our customers need.

Varney: We work with computer loan software from a company called Bankers Systems to quickly turn around our consumer and farm loans.

Do you think recreation is important? If so, why?

Stevens: Sure. You obviously need it to blow off steam. Our work environment has become increasingly stressful.

Varney: It is important. Selfishly, relaxation leads to better health, better marriages and better relationships with family.

Where do you get most of your ideas about banking technology?

Stevens: I buy most of the computer hardware myself. I go online to CNET and ZDNET. These sites evaluate quite a bit of hardware. For printers and other common hardware, I look to dejanews.com to get actual user perspectives. I also try to take advantage of demos whenever possible.

Varney: From America's Community Bankers. We look at the services you provide and your publications and those are where we get 90 percent of our information. We also look to our state organization, the Nebraska Bankers Association.

In the next 10 years what type of banking technology will be obsolete?

Stevens: I have a Bloomberg station terminal set up on my desk to obtain news about the financial market. I pay a hefty fee to use this service and I can get about 75 percent of that information for free on the Internet.

Varney: Downtown banks will become obsolete. There will be no need for those offices that appear strong and substantial with their columns and archways. In this day, both spouses work. They don't have the time to take off work and look for parking downtown. Branch offices will suffice for when you need to talk to a person, but the old way of banking will disappear.

What is your primary source of information, newspapers, magazines or the Internet?

Stevens: The Internet. I set up my own personal website on Yahoo and I subscribe to the Dow Jones Interactive Edition where I get the Wall Street Journal and Barron's online. I also check out the OTS website and look at my competitors' numbers.

Varney: A combination of newspapers and magazines. I mostly read America's Community Banker magazine, the Wall Street Journal, U.S. News and World Report and Nebraska's newspapers.

How do you relax?

Stevens: I spend a lot of time with my son, but I also play games on my PC. I like the realtime strategy games and I play them with different simulations.

Varney: It sounds strange, but I work at a couple of other jobs. I have a ranch where there is no telephone and I can do physical labor while getting away from the office. I also do some accounting for an insurance agency.

And finally, what advice do you have for other community bankers?

Stevens: Don't forget the human factor. It's our one advantage over the big banks. Also, take a hands-on approach to learning about technology.

Varney: The old mutual savings and loan axiom: Take care of your customers and they will take care of you.

[Author Affiliation]

Kimberly Gay is editorial assistant for the magazine.