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Despite the downturn in consumer Internet stock prices, the Net-only banking crowd continues to grow in number and funding. This month we add GE Financial Network www.gefn.com an impressive effort cobbled together from the product lines of CompuBank and PayTrust; and Umbrellabank, Chicago-based Argo Federal Savings Bank, a wholly owned subsidiary of Argo Bancorp
|
Bank |
Launch Month |
Ownership |
New Developments |
| 1st WebBankDirect | Sept. 1999 | Sovereign Bank | · Web site renovated to include spoken introduction of the product and an online brochure downloadable |
| American Express Membership Banking | Aug. 1999 | American Express | · added PayTrust’s scan-and-pay
bill payment service · revealed that 2.2 million cardmembers are using American Express online services, either statement access or online payment of their card bills |
| BankDirect | May 1999 | Texas Capital | · raised $26.5 mil to spin off
bankdirect.com in 1st quarter 2001, applied for a separate charter · plan to spend $50-100 mil over 12-18 months to build up bankdirect.com · current deposits at $210 mil · partnered with American Airlines to launch the BankDirect AAdvantage Program, with 5,000 miles for direct deposit as well as other deposit offers which provide lower rates in exchange for frequent flier miles · running full page ads in American’s in-flight magazine |
| Clarity Bank | March 2000 | private | · added account aggregation
through a venture with MyWay.com · mortgage offers include: (a) loan decision within 3 hours or $250; (b) will beat any lender’s offer or $250; (c) will close on agreed date or the rate will be lowered by 1/8% · opened commercial loan centers in Chicago and |
| CompuBank | Oct. 1998 | private | · Smart Money Magazine “Best Bank
Online”
· rated #1 in Customer Confidence and Saver categories of Gomez Spring 2000 ratings |
|
Bank |
Launch Month |
Ownership |
New Developments |
| DirectBanking | Nov. 1999 | Salem Five | · offering free Internet access through Freewwweb program to give their customers “truly free checking” |
| everbank.com | Jan. 2000 | Customer One Financial and Wilmington Federal Savings | · $100 million in deposits in
June, five months since launch · rated #2 in Customer Confidence in Gomez Spring 2000 · launched it’s human-based financial advisory service |
| NEW General Electric Financial Network (gefn.com) |
June 2000 | General Electric | · added GE Bill Manager provided
through PayTrust to the financial management site to round out the
banking services offered through CompuBank · offering $20 for opening first account |
| Juniper Financial | Fall 2000 | private | · with it’s WingspanBank heritage this well-funded entrant continues to grab a lot of media attention |
| NetBank | Oct. 1996 | public (NTBK), IPO 7/97 | · 100,000 active accounts as of
June 2000 · adding free bill presentment to bill pay program through CheckFree |
| OneCore.com | March 1999 | private | · named by Fortune Small Business
as one of 25 companies with breakthrough services in 2000 · redesigned site and offered a free year of Earthlink Internet service with an account and free payroll for 3 months and $100 OfficeMax rebate · marketing to “Financial Professionals” who advise small business clients with offer of support and possible fee income |
| PCbanker.com | Sept. 1999 | service mark of American Bank (PA) | · completed IPO of 1 million shares to raise $10 mil |
| Security First National Bank | Oct. 1995 | Royal Bank of Canada | · Web site redesigned · retained rating of “best overall” for the 6th quarter in Gomez Spring 2000 bank ratings |
| NEW umbrellabank.com |
June 2000 | Argo Bancorp | · Internet-only bank from Chicago-based Argo Federal Savings Bank, a wholly owned subsidiary of Argo Bancorp, $391 million holding company |
| USA Bancshares | Feb. 1999 | public (USAB) | · total funded accounts at 27,000 · Q1 report card: $365.6 mil in assets and 90 employees |
| X.com | Nov. 1999 | private | · the company’s PayPal service
launched a business account which for the first time included fees,
1.9% for receipt of emailed funds and an optional 0.6% fee for
automatic daily sweep of funds into the business’s bank account (via
ACH) · PayPal business accounts also receive $100,000 fraud protection for no additional charge · reset all PayPal user accounts with a new $2,000 lifetime limit of for free credit card charges · implemented a new online method for set-up and authorization of bank accounts for ACH transfer capability |
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