Y2K war chests planned

About 32 million households plan to build Y2K contingency funds by withdrawing about $99 billion, of which $44 billion would be withdrawn in the fourth quarter, according to a nationwide study by PSI Global, a Tampa financial service information company.

PSI released the results as the nation's top financial leaders warned at a news conference that stockpiling and inventory hedging against year 2000 computer failures could cause worse trouble than the Y2K glitch itself. http://www.tampatrib.com/sections/columnbz.htm

-- Now or Never (withdr@aw.yourmoney), September 20, 1999

Answers

FOR IMMEDIATE RELEASE

Consumers Trust Financial Services Providers as Source of Y2K Information; PSI Global Says "Just in Case" Cash Withdrawals Could Total $44 Billion in Fourth Quarter

TAMPA, FL, September 17, 1999  Financial services providers are well positioned to allay consumer concerns about the safety of their accounts in the transition to Y2K. A new study, released today by PSI Global, found that U.S. consumers ranked financial services providers as the most trustworthy source of information about what they are doing to prepare for Y2K. Regulatory agencies such as the Federal Deposit Insurance Corporation were second, followed by private consumer protection agencies and independent news media.

Overall, PSI Global found that 38% of U.S. households express some concern aboutY2K readiness in relation to any industry. Survey results show that 32% of consumers are concerned about the Y2K preparations of financial services providers; 33%, non-financial services providers; 29%, telephone companies and 30% have concerns about their local electric company's readiness.

According to the study, Y2K: Managing Financial Consumer Concerns, consumers concerns about financial services centers on primary banks and credit card issuers. Rohit Vaidya, Senior Vice President of PSI Global's Retail Financial Services Group said that 25% of consumers are concerned about the readiness of their primary banks and 22% are concerned about the readiness of their credit card issuers.

"In descending order, " he continued, "the percentage of consumers who are concerned about the Y2K readiness of other financial services providers are insurance, 20%; mortgages, 16%; mutual funds, 12%; and brokerages, 10%."

Customers want financial services organizations to provide a range of assurances regarding the security and safety of their accounts. For example, Mr. Vaidya said "consumers want to know backups of their records exist. They would like service guarantees, and many would like to receive preliminary year-end account statements," he added.

Specifically, the PSI study found that 57% of all U.S. households, and 75% of those expressing concern about the Y2K transition would like to have backups of their records.

Forty-two percent of all consumers and 57% of Y2K-concerned consumers would like service guarantees.

"Another important finding," Mr. Vaidya said, "is that all of the above may not be sufficient to satisfy a significant group of consumers. Thirty-percent of concerned households want other reassurances as well."

Financial services providers, PSI Global said, also are in a good position to deliver Y2K information via the methods consumers prefer. Consumers ranked statement stuffers, mail, and in-branch communications (tellers, signs, brochures) as the most desirable ways to obtain information about their providers preparations forY2K.

An estimated 32 million households plan to build a Y2K contingency fund. According to Mr. Vaidya, if consumers follow through with their stated intentions, total Y2K cash withdrawals would total about $99 billion, of which $44 billion will be withdrawn during the fourth quarter of 1999."

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-- Hmmm (for@immediate.release), September 20, 1999.

I think the banks can put together $99 billion in cash, especially if most of it is done by the end of the third quarter. Of course, it would also help if that remaining $44 billion were spread out across the fourth quarter, and was not all attempted in the last week of December.

Jerry

-- Jerry B (skeptic76@erols.com), September 20, 1999.

I think that works out to about $300 per household.

That's it? That's all we're gonna get?

-- Wontbe Enough (forme@aol.com), September 20, 1999.

My calclator say that's about $3,000. per household stated in the report (32 mil). How many households are there in the US? Here's my guess:

260,000,000 people divided by 3 persons per house = ~ 86,000,000 households. Are the 54 millioin households planning on leaving their money in the bank?

just wondering, Berry

-- Berry Picker (BerryPicking@yahoo.com), September 20, 1999.

Berry Picker,

A divisor of three is a bit high. The term "household" includes single people, even if they have roommates. Three single people living together in a three bedroom apartment are three households, even though they live under the same roof. A childless married couple is a household, too. The general consensus is that there are about 100 million households in the United States.

-- Prometheus (fire@for.man), September 20, 1999.