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TV Internet banking
to go live in nine states
By Stephen
Rothman • Bankrate.com
By early January, consumers in nine western states
will be able kick up their feet and do their banking through their
cable-connected television set.
 With
a click of a controller, they will be able to access the interactive
Web site of Bank of America (BofA) through a special black box atop
their television set available through cable systems run by Tele-Communications
Inc. of Englewood, Calif.
It's
part of a joint effort announced March 24 by TCI,
Intuit
of Palo Alto, Calif., Tele-Communications Inc. of Englewood, Colo.,
@Home
Network of Redwood, Calif. . and Bank
of America in San Francisco. , BofA has 14 million checking
and savings customers; through the miracle of cable television,
the new online service will eventually be available to more than
11 million households.
"We
see cable television as a really ideal channel for a certain set
of customers who find the PC a little bit overwhelming," said George
Cheng, senior vice president of product development for BofA's interactive
banking division.
"User-friendly"
technology at hand
"We
believe the technology is there and with proper design and human
engineering, we can build a very user-friendly television system
for people," said Cheng.
Through
the television connection, Cheng said, consumers will be able to
check their account balances, transfer money between accounts at
participating financial institutions, electronically receive and
pay bills, manage investments, shop for a mortgage, consumer loans
and insurance, as well as prepare and file tax returns.
Anup
Ghosh, a research scientist with Reliable
Software Technologies Corp. of Sterling, Va., said the television
connection has great possibilities.
"It's
a great idea that should catch on with people who like to sit in
their living room and click on their television. It's a friendlier
interface with a much bigger screen," Ghosh said.
LaRae
Marsik, a TCI representative, said the company will have 90 percent
of its system on the next generation of cable black boxes, which
will feature two-way capability, by the end of the year. Initially,
the black boxes will be available on a monthly lease.
Consumers could
purchase one model
However
the company also is considering a model that consumers would be
able to purchase.
Mark
Goines, senior vice president and general manager of Intuit's consumer
division, said the alliance will provide financial services utilizing
technology and software Intuit developed with CheckFree,
Microsoft
and other financial services and technology companies.
Intuit,
BofA and a number of other banks and brokerage firms have been working
on its development, along with a single language protocol that will
allow consumers to easily exchange information with anyone, Goines
said.
With
the new technology, a new and possibly more stable revenue stream
will be possible than from the current Internet system.
"We
see all kinds of revenue sources ... from advertising, to banks
charging for services and cable companies for use of the equipment
and Web connection," Goines said, adding that he believes other
cable companies will launch similar efforts in their own areas.
Potential
market huge
Goines
said the potential market for cable-based financial services is
huge. "There are 65 million households that are cable connected
and at least 25 percent of them don't have a computer to manage
their personal finances but could do it on their TV sets," he said.
"Once
the new technology is in place, I think we could see a change in
behavior," Goines said, explaining that he expects to see more people
take advantage of the financial software banks will make available
via cable TV.
-- Posted: March 27, 1998
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