Nevada County Picayune and Gurdon Times Newspaper Archive

Bank Of Delight Is Ready For Year 2000

Customers of the Nevada County Branch Bank of Delight have no need to worry about their money when Jan. 1, 2000 arrives.

Kent Hendrix, executive vice president, said the bank's computer systems have been checked and rechecked to make sure there will be no Y2K problems.

But this is nothing new to the bank's customers, he said, as the bank has been sending out notices in customers's statements regularly. These notices let the customers know what the bank is doing in preparation for the year 2000.

The bank, Hendrix said, began working on the Y2K problem in 1997, before the FDIC began issuing mandates on the problem. The bank, he continued, was evaluating its systems to see where it stood when the year changes from 1999 to 2000.

Most computers were designed using a 20th century calendar, and, it has been said repeatedly, they wouldn't recognize the year 2000 and would, instead, revert to 1900.

In the past couple of years, speculation has been rampant about a complete collapse of global computer systems on Jan. 1, 2000.

However, Hendrix pointed out, the federal government has mandated all financial institutions be prepared for Y2K.

The Nevada County Branch Bank of Delight, he said, utilizes Uni-Banc software, as do many other banks in the United States. This is the bank's operating software, or the programming used to keep up with all banking business done there.

Earlier this year, the FDIC tested the system itself, giving it passing marks for Y2K preparation, Hendrix said. But this was really no news to the bank as it had already tested the computers and found no problems.

Still, as the bank had purchased new hardware in March 1998, the testing had to be done to be sure.

Actually, Hendrix said, the few problems the bank ran into while doing its Y2K testing were with the hardware. So, the bank purchased a new server with a 32 bit user system to correct the situation.

Along with helping complete the Y2K preparations, the new server cut the daily processing time considerably.

The Nevada Branch Bank of Delight uses Fedline software to communicate with the Federal Reserve in St. Louis. The reserve supplied the bank with new software during the Y2K upgrades, with the bank purchasing the required hardware to go with it.

Now, Hendrix said, all of the computer systems are Y2K ready and are much faster than they were.

Still, taking no chances, the bank has a backup system as required by the FDIC.

Utilizing the Uni-Banc software, he said, the bank works with another financial institution in central Arkansas. While the two banks aren't affiliated, Hendrix said, they work together backing one another up and neither seeing the other's files.

This way, should the unthinkable occur and the bank lose its data, all account information will remain current and accessible.

Hendrix said by working with the other bank, it allows the Nevada County Branch Bank of Delight to offer the amenities of a large bank, while giving its customers small town personal attention.

When the end of 1999 arrives, he said, the data will also be downloaded onto floppy disks, just to be doubly sure. The information will also be backed up off-site to help provide even more security for its customers.

Then, he said, should there be a total system failure in spite of all the precautions taken, the bank will have up-to-date copies of all customer account information, so there will be no problems for the customers.

"I feel we've told the customers enough that they know how safe their money is," Hendrix said.

"The federal government says people's money is safer in a bank than anywhere else. But, people do need to be aware of scam artist who tell them to remove their funds from banks and have the ready cash on hand.

"There's no need for anyone to worry," he continued, "all the tests have been completed and we have letters of assurance from the major utility companies. Our customers' money is safe, and with the backups we have, even if we had a disaster, we could keep working."