A company has introduced a video banking machine that allows customers to talk on the telephone to a banker who appears on a TV screen.
Analysts said the technology could allow banks to cut costs by eliminating branch offices and to offer customers experts in areas such as mortgages, mutual funds and insurance who might not be found in every branch.But they cautioned that during a sharp contraction in the industry, it's unclear how much demand will exist for technological experimentation.
"The intrigue of it is that it delivers on the promise of high-tech, high-touch banking," said Christopher M. Formant, a banking consultant with Furash & Co. in Washington.
"It allows (banks) to take their product to people - where they live, where they work, where they shop - in a way that doesn't require a full branch," he said.
The video banking machine, developed by Personal Financial Assistant Inc. of Charlotte, consists of a booth with a telephone, video screen, chair, personal computer, printer and deposit box.
A customer talks to the bank representative on the telephone and sees a moving video image of the sales person on the screen. The banker cannot see the customer.
Text about whatever product a customer inquires - from opening a checking account to obtaining a car loan - then replaces the picture. At the end of the session, the sales person can print out information for the customer. The customer can sign forms and drop them in the deposit slot, retaining a copy.
Mortgages can be discussed with a banker in St. Louis. Press annuities and the call switches to New York. All the bank officer sees are the customer's records, which may put some customers more at ease.
Personal Financial Assistant President Richard D'Agostino said the technology will make it easier and cheaper for banks to offer new products and services. "It clones people," he said. "It allows one loan officer to be in eight different branches at the same time."
Analysts said the machines were not designed to replace the now-common automated teller machines, which first appeared in the late 1960s but took about 15 years to catch on.
The innovation, however, comes at a time of cost-cutting and consolidation in the banking industry. That could hurt if banks decide not to try new systems but could help if they are seeking to streamline operations.
The innovation may not appeal to all consumers, particularly those who want personal contact before conducting transactions like taking out a car loan or a mortgage.