Server: Netscape-Enterprise/3.0F Date: Thu, 18 Dec 1997 12:44:34 GMT Content-type: text/html Last-modified: Wed, 08 Oct 1997 19:32:34 GMT Content-length: 6643 Accept-ranges: bytes Connection: close Foothill Independent Bank FYI

FIB Logo
FYI


The Year 2000: Are Your Computers Ready?

In three short years when the ball drops at Times Square and calls an end to the year 1999, those two nines will be replaced by two zeros, creating for most businesses and corporations, a critical problem. Our customers, and potential customers, are our primary reason for being and for that reason, we feel it's important to bring to your attention an issue that can affect ninety percent of all known computers.

THE ISSUE
The issue is simple. Since the invention of computers, programmers have conserved space in data fields by abbreviating as much as is reasonably possible. A standard abbreviation is to use the last two digits to designate a year. Thus the year 1997 in your computer's records is the year "97." The computer then keeps track of years mathematically, the next large number indicating the following year, and a smaller number indicating an earlier year. Unless corrected, when the year following "99" is coded by "00," an error message will occur. Almost every transaction that is entered into your company's computer has a date associated with it.

There are literally hundreds of potential trouble spots in all companies.

HOW CAN IT INVOLVE YOUR BANK
It is anticipated that at least 90 percent of most banks will have serious computer problems associated with the calendar rollover from 1999 to 2000. Examples of problems that can occur in banks (and other institutions): investment accounting systems will not be able to accrue interest on investments, or to calculate how much interest is due. Personnel benefits records will not compute. Pension plans are going to lose track of who is vested and who is not. File retention systems are going to quit retaining files in chronological order. Entire accounting systems may fail.

If other banks have not begun a risk assessment as Foothill Independent has, they may not have enough time to properly identify the software and hardware equipment that needs to be corrected. Testing and "back up" contingencies are also issues for the year 2000. It has been proposed that it will take the remaining three years to ensure that the "switch" in the year 2000 is a non-event.

HOW IT CAN AFFECT YOU, OUR CUSTOMER
Corporate and business customers can expect the same problems. Besides financial formulas and personnel information, customers can anticipate inventory and maintenance records failing, and billing procedures corrupted. Software programs designed specifically for time management programs and security systems may abort.

THE SOLUTION BEGINS NOW
Foothill Independent Bank has begun preparation for the year 2000. If you are not a customer of Foothill, we suggest that you contact your institution and ask if contingency plans are in place. As a company, we strongly suggest you begin preparing too. Take the following steps to ensure your company's computer systems are problem free for the Millenium.

  • Begin with a risk assessment.
  • Identify the systems that must be modified.
  • Develop a plan to get the systems modified.
  • Test systems and execute "back up" measures.
  • Pursue external vendors with vigor.

As a Foothill customer, you can learn more about how to implement these steps. Please leave your name in our Guestbook for more information.

Missing previous FYI articles?
Would you like more information on:
Imaging
Asset Based Lending
Small Business Administration Lending
Construction Loans

Please leave your name in our Guestbook and we'll be happy to forward the information to you.


FIB_but.gif
FIB_but.gif
deposits_but.gif
loans_but.gif
FYI_button
Human Resources button
guestbook_but.gif

| Foothill Independent Bancorp | Deposits | Loans | FYI | Human Resources | Guestbook |

equal housing lender
Send mail to info@foothillindbank.com with questions or comments.
Copyright © 1996, 1997 Foothill Independent Bank
All rights reserved.
FDIC