STAR®

Changes in consumer behavior, market saturation and increased operational costs have contributed to the decline in automated teller machine (ATM) profitability. Forward-looking financial institutions (FIs) are rethinking their ATM strategy and moving toward exciting new technologies. Recent innovations present FIs with an opportunity to turn ATMs into customer relationship tools, marketing to specific consumers. These new ATM programs help strengthen relationships, increase loyalty and generate revenues.

Sixty-one million households use Internet banking today and two-thirds of those users would switch financial institutions (FIs) for a better online banking solution. Despite the growing importance of Internet banking to attract and retain high-value customers, many FIs still rely on first-generation systems that lack the service levels and features that savvy online bankers are seeking.

Even with education and high-tech systems designed to protect consumers, identity theft continues to be a major concern. As this and other types of fraud proliferate, financial services companies are in danger of losing customers’ confidence in the event of a security breach. The Fair and Accurate Transaction Act (FACTA) Red Flag rules—designed to address these issues, require financial institutions and creditors to implement a written identity theft prevention program to detect, prevent and mitigate identity theft.

Voice over Internet Protocol’s (VoIP) impact on transfer cost changes the equation for hosted IVR and unlocks significant new opportunities for voice application outsourcing.