Phase 3: Remediation - We examined and rewrote programs, replaced them if necessary, and established firm commitments from our vendors and service providers that they would do likewise.Phase 4: Testing - In the winter and spring of 1999, we tested all of our applications by simulating the millennium date rollover. We tested until all our simulations were error-free; we also fully tested our interfaces with other systems such as the Federal Reserve and outside service providers.Phase 5: Implementation - All computers and systems at Santa Clara Valley Bank are running smoothly, and we fully expect trouble-free operations throughout the millennium date change.We have a high level of confidence that all will be well; nevertheless, it isn’t possible to guarantee that external systems not under our control will perform as expected. Each SCVB department has established a detailed contingency plan to be followed to minimize disruption in case of system failures outside our control. Rest assured that we will have accurate back-up records, and while SCVB customers may wish to keep records of their transactions with us, we will be able to accurately review each account history when we open on Monday, January 3, 2000.John Koskinen, chairman of the President’s Council on Year 2000 Conversion, said “banking is clearly in the best shape of any industry in the country.” That view is shared by San Francisco Federal Reserve Bank President Robert Parry and Fed Chairman Allan Greenspan, who have praised banks’ readiness for the date rollover. The FDIC recently reported that 99 percent of U.S. banks are on track or already fully prepared for Y2K, good news for not only Santa Clara Valley Bank customers, but the nation overall.
Banking Industry Well Prepared
to Face the Millennium
November 19, 1999
By J. Stephen VoelkerPresident/CEO Santa Clara Valley Bank
Columnist
By J. Stephen Voelker President/CEO Santa Clara Valley Bank
If you’re like those of us here at Santa Clara Valley Bank (SCVB), you’ve been concerned about what may happen to computers and the services that depend on computers when the clock rolls over to January 1, 2000. Now that we have substantially completed all of our preparations for the so-called “Y2K problem”, I want to share some details of those preparations and report on our readiness accomplished under the direction of SCVB Vice President Christine Tonello.We have been working on Y2K since Santa Clara Valley Bank opened in December 1998, collaborating closely with government regulators, vendors who provide our software and processing services, and customers whose own Y2K readiness might have an impact on the bank.We have a high level of confidence that all will be well, especially since SCVB had the advantage of our start-up effort being fully cognizant of the upcoming Y2K turnover and the related challenges that might be presented. The bank vowed to use only Y2K compliant systems.Nevertheless, in order to assure ourselves that SCVB systems and services to customers would be trouble free to greet the millennium, we planned a five-phase process in accordance with federal guidelines:Phase 1: Awareness - Early in the process it was important that each department of the bank understand the potential problems, consider possible system errors, and accept that solving the Y2K program would be our highest technology priority.Phase 2: Assessment - An inventory of all our software applications, computers, operating systems and locations has been completed, identifying those that are essential to our operations, and plans formulated for the remedial action necessary to fix each one in rank order of importance.
