Magazine article American Banker

Remote Banking Via Interactive TV Gets Boost from New EDS Alliance

Magazine article American Banker

Remote Banking Via Interactive TV Gets Boost from New EDS Alliance

Article excerpt

Electronic Data Systems Corp. has formed an alliance with an interactive media company that may herald some bold initiatives in remote banking services.

The partnership between the giant computer-services company and Dallas-based IT Network Inc. gives EDS' customers a way to reach out to consumers through cable television.

Interactive television has been touted as a p6tenfially limitless deliv.ery channel for products and services that require instantaneous two-way communications.

But this medium has been largely ignored by the financial institutions exploring in-home delivery systems. Most have preferred to use telephone- or PC based channels.

The EDS alliance promises an exciting list of options that could change bankers' outlook on home banking and on ways they might enter the market.

"The banks have to have electronic alternatives," said Neil Marcous, a vice president and general manager of EDS' electronic commerce division. "They have to offer an entire array of services to customers."

EDS and IT plan to start rolling out services on their Interactive Channel platform in the first quarter of 1995.

The venture may begin working with financial institutions by late 1995, Mr. Marcous said.

Financial institutions, Mr. Marcous suggested, need to consider the possibilities of providing more than just a basic banking and bill-paying package via the new in-home media.

Because he anticipates these services will eventually be widely available, Mr. Marcous said the financial industry must consider including catalogues and video-on-demand services to retain customer loyalty.

"If these things are possible, someone will be offering them in a greater and greater way," Mr. Marcous said. "Consumers make decisions based on overall convienience."

As traditional brick-and-mortar branch systems become increasingly displaced by remote service options, banks will face more and more competition from outside their industry. …

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