Opening the door to self-service at the Bank of Hawaii

Aug 1, 2001 12:00 PM

In the competitive industry of commercial banking, where mergers and failures are commonplace, banks must continually cut costs and attract customers to stay afloat. So the race is on to automate more services. Use of automated teller machines is no longer enough for banks to satisfy consumers and compete in the marketplace. Their customers must be able to do their banking more quickly and conveniently.

In response to this need, the Bank of Hawaii has automated many of its transaction processes. According to Harvey Chang, vice president and project manager, Hawaii branch division, automated banking is ideal for this techno-savvy population.

“Studies have shown that people in Hawaii like self-service, and we have a high ATM, computer and Internet usage per-capita,” Chang said.

To better serve customers, the Bank of Hawaii has incorporated machines to cash checks, exchange foreign currency and access the Internet. Although some of this technology isn't new, few banks on the mainland offer the same collection of automated services. As an added bonus, the Bank of Hawaii has shown these processes are customer-friendly because they reduce or eliminate waiting time, and are cost-effective, since employees can focus on other customer services.

Bank of Hawaii has even installed the state's first virtual teller system, which serves customers using two-way monitors and a pneumatic tube. The system enables tellers to serve two customers at once — reducing wait time and heightening safety because the tellers are in a secure location away from customers.

When the Waianae branch was built last year, Bank of Hawaii officials decided to incorporate some of these new services. Dubbed “the branch of the future,” the bank features the latest technology. The bank has four virtual tellers, check-cashing ATMs and lobby kiosks for banking via the Internet and telephone. And using Diebold's modular vault, single-lock boxes and PassVault system, the branch offers self-serve safe-deposit boxes.

PassVault uses computer technology and biometrics to provide customer access to safe-deposit boxes without a vault attendant. A customer enters a PIN number and places a hand in a wall-mounted, biometric hand reader. If the identity is verified, the hand reader admits the customer to the vault and logs the entry.

“Research showed that our customers have a strong need for automation, audit trails and the overall convenience that PassVault provides,” said Richard Baggot, general manager of Diebold's electronic security group.

The system has been the perfect solution for the Bank of Hawaii's Waianae branch.

“We chose PassVault because it enables us to provide self-service delivery, and we're satisfied with the safety aspects of it,” Chang said. “We're comfortable using a hand reader and a PIN number. It has worked very well for us.”

Recognition Systems Inc., Campbell, Calif., manufactures HandReader, which measures finger length, width, thickness and surface area. The information is then compared to data stored on an ID card or in the system's memory.

The Waianae branch, which has about 500 customers with safe-deposit boxes, has eliminated the need for an attendant, thus lowering operating expenses for the bank. At the same time, the system helps boost revenue because bank employees have more time to cross-sell products.

“Customers like the system a lot,” Chang said. “Since we've made the transition and customers have become familiar with it, the comments have been favorable.”

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