ADP, the automation service bureau, has begun testing a home banking videotex service in 20 market areas. Joining ADP will be 19 financial institutions, each paying up to $500,000, depending on the number of terminals served. Another 12 financial institutions have opted to be “observers” for a substantially lower fee. The system will include funds transfer and automatic bill paying capabilities. Two Digital VAX super-minis will support the system. Plans are to use AT&T's $900 Sceptre cordless videotex terminals and possibly later some personal computers. Several pricing strategies will be tested. The significance of the trial is the large sums of money which the participants are willing to invest. Of the some 250 videotex trials which have been undertaken in the U.S. to date, few have gotten the providers to make more than token investments.
The support of information providers is clearly a key factor in the success of the technology. The oldest installations are in Britain, but usage is limited. In contrast, there is rapid expansion underway in France, with the 175,000 videotex terminals installed as of late 1983 to increase to 1 million by the end of 1984 and 3 million by the end of 1986. It is estimated that at this time there are only 250,000 users in all of the world outside France.
Were the technology to succeed in the U.S., it could be used to provide access to library catalogs and other files to homes and offices.
