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'Money Service'
drawing attention
of world bankers
ByRonltcglsss i
A money transfer system which begn in Lincoln's
Hinky Dinky grocery itores in 1974 has drawn the
attention of directors of national and iaternatiend
financial institutions. - ,
Personnel from about three financial institutions
visit the Transmatic Money Service (HIS) offices weekly
in the First Federal Savings and Loan bldg., according to
John Lydick, director of TM5, also blown as The Money
Service.
"Basically, it takes the power of the computer and
moves it to where tlie people are," he added.
The Money Service is actually a savings account that is
accessible at consumer outlets, other than the savings and
loan institution itself, through remote computer
terminttls. First Federal developed the plan for HIS and
asked Hinky Dinky to alow the terminals in their stores,
Lydick said.
The user can make deposits and withdrawals from
his account by presenting a plastic account card with a
'magnetic strip to a teller at the merchant's location, who
makes the transaction from the remote terminal.
Upset wedd .
"This tended to upset ihe financial "world," Lydick
said. "AO of a sudden, the consumer had an easier way
to do his banking needs."
Every major financial institution has access to a
computer, he said, and The Money Service (or similar
programs) make more efficient use of these computers.
First Federal has 40 remote savings terminals, which
have developed from the first five located in Kinky Dinky
stores, Lydick said. Jack and Ja3, Den Simon's and
Richman Gordrnan stores also have the service.
Sixty more terminals in merchant outlets across the
state are planned to be added this year, he said.
The cost of these 60 new terminals wd be less than the
contraction of two branch savings and loan offices,
Lydick said. - - -
, Good for merchants
"It is also good for the merchants, as it draws more
people to their place of business.'
First Federal now has 20 per cent of its transactions
conducted at the merchant locations, Lydick said, and
during the two years IMS has operated, its assets have
increased 44 per cent, Lydick said.
In addition, it costs little to have the computer stay
open 'since the stores are open anyway, Lydick said.
"Besides, people have to go to the grocery store and
these stores are built strategically where the people live.
"This is much more convenient for the consumer than
having to go downtown to a marble mausoleum built by
the institution, Lydick added.-
The TMS Corporation of the Americas, a wholly
owned subsidiary of First Federal, is marketing the Money
Service concept throughout the cation, he said.
-4
T - - f
r
Cfcaismfrs cf Feat Federal
the grocery state. The Tiznsm
:r"r;s trJ Lean Asra. may transfer many to cr frcm their savings account whi
atic Money Savicc moves computer ban!drg to the consumer.
Programs have been licensed in Cleveland, Pittsburg,
Washington, D.C., Boston and Chicago, Lydick said, and
similar services have been developed by other firms across
the country. .
"It's impossible to copyright the concept," he added.
"If it's a good Mea, it's going to be copied."
The Money Service has been called "the most
important thing in banking in the last 50 years," Lydick
said. ...
"I can't think of any press that has been unfavorable
toward the concept," he added.
"most interesting experiment"
World Business magazine, in its spring, 1975, edition,
said: "One cf the most interesting experiments in this
area (Electronic Funds Transfer System) involves the Fast
Federal Savings and Loan of Lincoln, Nebraska, which has
installed very simple terminals in all five Hinky Dinky
grocery stores in Lincoln. . .The project acts as a very '
cheap way of branching for First Federal without really
adding more than a $500 terminal and some software and
communications lines. The next phases wO add both new
locations and new services, such as bill paying."
Lydick said the rest cf the banking community sued
Hinky Dinky in an attempt to prevent operation of the
system, because of the threat to their position in the
financial world.
Hinky Dinky won the law suit and set a precedent for
other operations across the nation, he said.
The Nebraska Supreme Court decision stated: "The
computer terminal is arulagous to communication equip
ment of other kinds in that it simply transmits
information to ihe central computer of First Federal.
The depc&t and withdrawal transactions are electronically
effected and perfected by the computer on the records
and premises of First Federal. At no time does First
Federal have possession or ownership of any cash or
funds physically transferred on. the store premises
between the store and the customer." -
Many new features are to be added to the Money
Service in the- future, Lydick said, but those changes
cannot be revealed because they are in the planning stages.
'"We do hope to make it into a card usable anywhere in
the country, linked by a national computer network,"
he said.
"It is significant that electronic banking began in
Lincoln, Neb.," Lydick added. "The Nebraska consumer
has had a lot to do with its (TMS) development in the
state and in the nation."
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Lincoln's head, Helen Boosalis,
state's one full-time female mayor
By Cstsfc Asesioiss
Helen Boosalis is one of the few full-rime women
-mayors in the United States, according to Mike Merwick,
But differences in styles of management, not the fact
that one is male or female, is what distinguMies one
mayor from another, Boosalis said.
Boosalis, one of forty women mayors in American
cities cf ever 35,000 population, said she thinks there are
no significant prcsblems in being a woman mayor.
"I really kind of feel, for the general public, the issae
(of male versus female) is resolved - in the election,
Boosalis said. :
She said she has had no major opposition from any
large group of people because she is a woman. Instead, she
said, she thinks there are "pockets of opposition' towards
women in politics in Lincoln, but that most of the
community does not share the view.
Boosalis said she thinks people's attitudes on women in
government are "unquestionably changing. ' i . .
People are looking more at a person's qualifications,
ratLer than race cr sax, she said.
Cie attributed this chasge to the women's movement
and to the greater number cf women being elected to
grnment positions, as .well as their soccer in those
ats a women mayors mclude Inoenix,
ClLthcma City and Sin Antonio. .
Llsrwick, Boosalis' astant, sail many cities with
women mayors are ran. under the city caui-tr form of
government, with a part-time myrrr zzd a fiU-trns city
rnanager-administrator. . "
Boosalis rsakes the decisions
Boosalis said the mayor makes the administrative
decisions in Lincoln.
BoosaEs is one of the highest paid full-time women
mayors in the country making a yearly salary of $28,000,
Merwick said. There are 10 other women mayors in Ne
braska, but none of them work full time, he said.
Merwick said he thinks there are no particular advant
ages or disadvantages for women mayors.
"She (Boosalis) acts on what she thinks is right for the
city," he said.'
This is because she is a veteran in dty government, hav
ing served on the Lincoln City Council for 16 years before
her election as mayor in 1975, he said.
Merwick said most of the men in the office relate to
her as any employe would relate to his boss.
flrltlji,i.il . t
The attitude that men don't like to work for women is
not present inter administration, the mayor sail.
Most of .the applicants for three top admiaistratife
positions open during her term were man, she said.
Boosalis said she hadn't thought cf running for mayor
until a month before last year's primary.- Sie said sfie
entered the race to accept a challenge as an mdirid-al to
get more involved in city govenmient.
"I had been hesitant about running to tcia with,
Boosalis said. "I wasn't sure I had the mansgtsssnt skSs
the job would require "
However, she said, she thoht her knowledge of city
government would make up for her lack cf managerial
experience. . ... ... .
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