result of a new retail banking system that came on line this week.

And executive vice president, Colin Furr, said that depositors would be better served as a result of the significant investment by the bank in new hardware and software.

"The customer will not notice many things different, although the new system is expected to lead to an overall improvement in, and reduction of, paperwork in the future,'' he said.

But Bank customers will soon learn that some of their account numbers are being extended.

Mr. Furr refused to comment on the cost of the system.

The first phase includes savings accounts and Butterfield Mortgage and Finance deposits, with the accounts now changing from 12-digits to 17-digits, although the six-digit core account number will remain unchanged.

Interest credits for accounts will be posted in March, June, September and December, instead of the current February, May, August and November. That change takes place after February's interest is credited. A further one month's credit will be posted in March.

Mr. Furr also pointed out that the changes will pave the way for customer enhancements in the future, such as tiered levels for loan applications.

Better management reporting would also result from the alterations. Current accounts and loan accounts are not involved at this time, said Mr. Furr.

Mr. Furr added that the bank's customers need not take any action as a result of the changes, and, existing standing and payment orders will remain unaffected. Savings account passbooks can be updated when next presented.