Interactive Financial Messaging (IFM)™ is the Future of Electronic Financial Services, Increasing Convenience, Loyalty and Safety Through Technologies that Enable Control-Sharing with Customers

New Javelin Report Shows how Banks and Consumers can Benefit

LAS VEGAS, November 16, 2006 –Javelin Strategy & Research released a new report in conjunction with the BAI Retail Delivery Symposium, which shows how financial institutions can improve customer convenience and loyalty by using new interactive technologies to give consumers more control over their accounts. The report, Interactive Financial Messaging™, also documents how institutions can reduce fraud by allowing customers to limit account activity due to each individual account holder’s inherent knowledge of their personal use of the account.  Javelin believes that the future of online banking market share relies on a willingness to invest and incorporate Interactive Financial Messaging™ technology.


“Through IFMs, banks, card issuers and other financial institutions can increase customer relationship value while reducing operational costs”, said James Van Dyke, President of Javelin Strategy& Research. “By giving consumers the control they crave, banks can use emerging two-way, multi-channel alerts and messaging capabilities to accomplish a second wave of online banking success.”

Key Findings and Analysis of Interactive Financial Messaging

The Javelin Strategy & Research report provides in-depth analysis of the strategic use of e-mail alerts, account prohibitions and other methods that mitigate fraud, enhance consumer control, and deepen relationships with account holders. The report also identifies several current trends:

• Customer control over account activity will soon undergo a revolution that will help financial institutions strengthen customer relationships and mitigate fraud.
• Financial institutions currently offer consumers the ability to opt-in to e-mail alerts but have yet to implement account prohibitions or immediate review-and-release capabilities for certain transactions.
• Most financial institutions are building alert capabilities in-house but will use vendor solutions as the complexity of offerings increases.
• No vendors currently offer all facets of Interactive Financial MessagingÔ functionality in technology platforms, but the demand for this capability is about to increase sharply.

“To reap the rewards, financial institutions should give consumers the control they want over account information and allowed activity,” Author and Senior Analyst Bruce Cundiff said. “The required systems changes won’t be easy, and institutions must follow non-traditional methods to allow consumers to easily manage the type, frequency and delivery method, while realizing that significant new product strategies and functions will be required”

For More Information

For additional recommendations, a copy of the complete Interactive Financial MessagingÔ report is available along with other Javelin reports and custom research by visiting www.javelinstrategy.com/research or by calling (925) 225-9100×26.

About Javelin Strategy & Research

Javelin provides independent, action-ready research and strategy consulting focused solely on the financial services and payments industries. Javelin’s research-based guidance factors-in the interdependence of consumer and business end-users, financial service providers, payment firms, technology vendors, merchants, billers and other third parties to align opportunity with action. Javelin can be found on the Web at www.javelinstrategy.com.

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Luke Albertalli
lukea @ javelinstrategyDOTcom
925-225-9100×26