Banks Beginning To Outsource Jobs

Banks Beginning To Outsource Jobs Some Consumers May Be Concerned

POSTED: 2:07 pm EST February 17, 2006

CLEVELAND -- Zak Mann banks the modern way. He gets all his cash from the ATM and checks his statements online, too.

"That's really how it's the most convenient," Mann said.

He had no idea about the latest trend his bank is using -- outsourcing work overseas.

WEWS reported it's not uncommon. Many of the top U.S. banks are now hiring in countries, like India to fill not only technical support, but also data entry jobs.

Fritz Elmendorf of the Consumer Bankers buttociation said it's all about saving money.

"Banks, like other industries, are exploring ways to reduce their expenses and that can include using vendors that are based overseas with a cheaper labor rate," Elmendorf said.

But consumer advocate Beth Givens warns banking is not like any other industry, since the product is your money.

"The person on the other end of the line is likely to have very sensitive information -- your account number, your Social security number, the types of accounts you have, the way you use your accounts," Givens said.

Even the government group that insures bank deposits, FDIC, acknowledges the risks, warning security measure like background checks are ãstandard requirements in the United States.ä

The ability to obtain the same types of reviews in many other countries is questionable."

"They may not really know who is working for them. There could be a higher risk for fraud," Givens said.

If there was a case of fraud, however, the banking industry said consumers would get their money back.

Givens said banks don't have to tell you whether they're sending information overseas, so if the practice concerns you, it's critical to ask.

Zak said even though he does not know if his personal accounts are being outsourced, just knowing his bank ships some of its data is enough to make him think about making a switch.