The ink's barely dry on the news that ING Group will divest its U.S. bank, ING Direct, within the next 48 months (note 1), when someone else has already launched a direct bank with a distinctive orange theme (note 2):

The new brand: Incredible Bank from River Valley Bank, an 18-branch, $900 million (assets) bank headquartered in Wausau, Wisconsin.

The strategy: Like the original orange bank's Electric Orange account, Incredible Bank offers a high-yield checking account, currently paying 2%, that's 100% electronic. No paper checks (note 3), no paper statements. And unlike the hundreds of rewards-checking products, this one comes with no strings attached. The full rate is paid on all balances up to $250,000, then it drops to 1%.

Other account features:

• Debit card
• Free online bill pay
• Unlimited ATM reimbursement
• Overdrafts are $34 each with max 10 per day
• Incoming wires are $5 each, outgoing are $20
• Mobile banking (which is highlighted on the home page, see below and note 4)
• ACH in/out (coming soon)

Analysis
I've always wondered why, other than ING Direct and Kiwi Bank, only the U.K. direct banks seemed capable of a light-hearted brand positioning online (see update below). While we've seen many good social media and microsite efforts using humor, few financial institutions have dared use this approach on their core websites. Leave it to those spirited cheeseheads in Wisconsin to break the mold finally (note 5).

Initially, it's the 2% rate that will bring cash to Incredible Bank. But longer term, for any direct bank to add value to the parent's franchise, it must create loyal customers who won't bolt to the next newcomer offering a 15-basis-point rate advantage. This is a good start for River Valley, but they'll need a lot more than this bare-bones website to create long-lasting relationships.     

Hat tip: Bank Deals blog.

Update 9 Nov: The Financial Brand's Jeffry Pilcher reminded me of two good U.S. examples, GMAC's Ally Bank and (how could I forget?) Redneck Bank.

Incredible Bank homepage (9 Nov 2009)

Notes:
1. In his Retail Delivery presentation, always one of the highlights of the show for me, Second Curve principal Tom Brown said ING Direct would be an attractive acquisition for any number of deposit-seeking large financial institutions; however, he did not name any.
2. Full disclosure: I have a strange weakness for the color orange, perhaps the result of many trips to Florida as a child. So, take anything I say in this post with a huge grain of salt. 
3. Normally, I think paper checks should still be made available, even if they are discouraged with fees. However, in cases where the direct brand will cannibalize deposits at the parent, it can make strategic sense to cripple the direct brand's checking account in this way. That way, fewer River Valley customers will simply move their entire checking account over.
4. The bank has created a mobile site with shorter URL: ib4you.com. 
5. While Incredible Bank is quite different, the main River Valley Bank brand remains typically conservative, at least in its online presence. They don't even dare mention the Incredible brand anywhere on its website.
6. See our Online Banking Report: Growing Deposits in the Digital Age for a dozen more strategies.

It's been six months since the last direct bank launch, Provident Direct (coverage here). The latest entry is OnBank from M&T Bank, a $66 billion bank based in Buffalo, NY. 

OnBank passes our strict 25-word homepage standard, joining ING Direct, EmigrantDirect on the short list of financial institutions with Google-like clarity on their home page. It takes just a few seconds to know that this is a place to get a high rate of interest on your money, but you should look elsewhere for a commercial loan.

The user has just two main choices of what to do next (screenshots below):

1. Apply...encased in a trendy lime green button
2. More details...which leads to an equally succinct page that answers the important questions (see last screenshot below):
   - fee free
   - minimum balance of $1
   - FDIC insured
   - quick online opening process

The only thing missing is a comparison to other banks. Given that it's one of the highest savings rates available right now, OnBank should be aggressively showing how it compares to key online rivals, including ING Direct's 3%.

Not only is the bank direct and to the point in its copywriting, it also uses simple, effective graphics, including a gimmick sure to gain attention. To reinforce its 24/7 "always on" branding, OnBank takes a page from the iPhone weather forecast interface, showing the current time in reverse lettering in front of a background image that changes to match the time of day. As you can see in the three screenshots below: daylight (4:42 PM), sun setting (8:58 PM), and nighttime (9:02 PM). Presumably they also have a sunrise background. The bank displays the time according to the user's machine, PDT in my case.

We didn't test the Metavante-powered online application all the way through, but it looked relatively straightforward, although graphically not as appealing as the other OnBank pages.

Thanks to Bank Deals for the find.

OnBank homepage during daytime (17 April 2008)

Evening (16 April 2008)

Night (16 April 2008)

"More details page" (17 April 2008)

ING Direct will spend $220 million in cash to buy Sharebuilder, a unique Bellevue, WA-based discount brokerage, with upwards of 2 million accounts across 660,000 customers (see previous coverage here). The deal was first reported in the Seattle PI last week (here) and confirmed yesterday (here).

At an acquisition cost of about $100 per account or $300 per customer, it seems workable at face value. However, both Sharebuilder and ING Direct's core businesses have historically been relatively low margin, so it will take good execution to make the acquisition pay off.

Many (most??) of Sharebuilder's accounts have come through co-branded programs with 40 banks and 140 credit unions including National City Bank and Boeing Employees Credit Union. It's biggest brand name partner is Wells Fargo (see co-branded holiday promotional email from 2002 below), which not coincidentally, is also an investor in the company. It will be interesting to see if the company's financial institution partners will continue to promote Sharebuilder accounts now that it's a division of ING Direct.  

ING Direct has offered a small assortment of mutual funds to its customers for years (product page here), but they have not been widely promoted. With the Sharebuilder product, ING Direct will have another tactic to fend off the fierce online competition for high-rate deposits.  

Update (8 Nov 2007): comScore released interesting traffic data on the two companies today. In Sep 2007, ING Direct had 2.0 million unique users and Sharebuilder had 1.1 million and there was only a small overlap of approximately 100,000 users. So the combined entity would have an estimated 3.0 million uniques. However, most of the overlap represents customers of both companies. comScore data shows that 8.4% of Sharebuilder logins in Sep. also logged in to ING Direct that month. That means 50,000 to 60,000 Sharebuilder customers are already ING Direct customers, meaning the net account pickup is closer to 600,000.  

Wells Fargo/Sharebuilder email from 2002 (received 16 Dec 2002)

Wells Fargo co-branded Sharebuilder new account application (7 Nov 2007):

According to story in Wednesday's American Banker, Provident Bankshares, a $6 billion Baltimore, MD-based bank, has opened a direct bank to help reduce customer defections to other online banks (see screenshot below). In testing now, the new unit is slated for official launch in 2008. And unlike many other regional programs, Provident intends to market the new bank within its home market. It even plans to advertise to select visitors on its main website, <web.provbank.com>.  

While the bank risks cannibalizing its own deposit base, it feels that the direct bank, combined with the reputation of the parent, will help stem deposit outflows. The new bank will operate at <provident-direct.com>.

Analysis
I'm not convinced slapping a "direct" on your name and boosting savings rates ten-fold is all that compelling of a strategy (note 1). Sure, FNBO was able to add $1.5 billion in deposits, but only by offering a way-above-market 6% rate until just a month ago (see previous post here).

Dueling websites create channel conflict. Depending on how they are compensated, branch staff will either move everyone into the online-deposit account, or keep it a secret and hope never to be confronted by an angry customer wanting to know why they are earning 75% less in the branch than if they moved their money online.   

However, if Provident can keep costs down, operating the unit as more of a "virtual direct bank," with little additional expense other than a small website and a few dedicated sales/support reps, and figure out how to manage channel conflict, it could pencil out. And the bank can also use the unit to test new products and pricing without impacting its larger customer base.   

Note:

1. Actually, the high-yield rate at Provident Direct is 15 times higher than its 0.3% standard savings rates. But for higher balances, at least $25,000, the parent bank already offers a 4.0% APY money market account, just a half-percent under the high-yield rate. 

First National Bank of Omaha has attracted $1.5 billion in deposits through its Internet subsidiary, FNBO Direct, launched in February (previous coverage here). 

The numbers were chronicled in a NY Times article earlier this month (here) about the so-called rate chasers, depositors that move money around online seeking the absolute highest rate, even if it means moving the money many times each year.

Total deposits: $1.5 billion

Total accounts: 36,000

Average per account: $42,000

Number of mega-depositors (with $400,000+): several thousand

Deposits of the mega-depositors: approx $1 billion

Deposit of everyone else: $500 million in 33,000 to 34,000 accounts

Average per "normal" account: $14,000 to $15,000 

Now that the 6% APY has dropped to 5.05% (effective Sep. 28), it will be interesting to see how many deposits the bank retains.

I'm not sure how new it is, but Bank Deals Blog had its first posting yesterday (here). NewBank from Elk Grove, CA-based Stockmans Bank coincidentally was purchased by PremierWest Bancorp while I was writing this blog post yesterday.

It looks like another deposit play, offering higher rates through the online brand to help it keep rates at the parent relatively low (see comparison below). The direct bank is also offering a $50 bonus for new checking accounts opened with at least $2,500 (see screenshot below).

Here are the rates for a $20,000 balance:  

                             Stockmans      NewBank    Advantage

Interest checking >>> 0.50%         3.50%            7x

Savings >>>>>>>>>>>> 1.35%          4.00%           3x

Money market >>>>>> 2.30%           n/a            1.5x (vs savings)

6-month CD >>>>>>>> 4.30%          5.25%           +22%

First National Bank of Omaha used this approach to bag $1.5 billion in deposits at its Internet subsidiary, FNBO Direct, since its February launch (see previous coverage here). 

Thanks to Bank Deals Blog for the tip (here).

I was flying to New York Saturday morning when I read the news in The Wall Street Journal that NetBank had gone under, the largest bank failure in 14 years (note 1). While the WSJ headline, NetBank Failure Shows Online Limits, implied that online delivery shared some of the blame, NetBank's downfall was primarily from poorly underwritten loans, both prime and sub-prime, and most of those originations came the old-fashioned way, through face-to-face mortgage broker sales.

Over the years I've been acquainted with a number of NetBank employees and have written extensively about their innovations since their launch in 1996, as the second Internet-only brand. Interestingly, the three major U.S. Internet-only brands launched in 1995, 1996 and 1997 are gone: the first Internet-only bank, Security First Network Bank was sold to Centura (owned by RBC) and Compubank was sold to NetBank. 

But no matter what the reason, a failure of one of the key names in U.S. online banking certainly gives the industry a black eye. My hope is that a forward-thinking bank buys the NetBank brand from the government and relaunches it with much fanfare next year. Sure, there's some negative brand equity this year, but the NetBank name is a classic and shouldn't go to waste (note 2).

ING Direct, which now lays claim to the retail deposits (note 1), has taken over the NetBank hompage for now (see screenshot below):

For more information:

• FDIC info on the closure here
• NetBank timeline from the Atlanta Journal Constitution here
• It takes a failure for a bank to make TechCrunch here
• American Banker's good summary of the failure, complete with quotes from federal regulators, here

Notes:

1. The company was taken over by federal regulators, who will sell off the assets and return all deposits up to the $100,000 insurance limit. About $1.5 billion in retail deposits, and 102,000 customer accounts, have been purchased by ING Direct. The estimated $110 million shortfall will be covered by the deposit-insurance reserves funded by premiums levied to all banks. The failure does not have direct cost to taxpayers.

2. We said the same thing about NextCard in 2001, but no one followed our suggestion. Now the most well-known website and brand of the most prolific advertiser in the late 1990s has been reduced to a link farm collecting rent from Google Adsense.

Some companies are so innovative, you take them for granted. Five that come to mind, in no particular order:

• Yodlee: account aggregation, credit card-based bill payment, mobile banking
• Vancity (Canada): microcredit, green banking, blogging, community involvement
• Wells Fargo: simple expense tracker, blogging, Second Life
• PayPal: email-based payments, confirmation via twin deposits, integration into eBay (before it was part of eBay)
• Prosper: Social lending, open API to most of its aggregated data, groups, auction style, Facebook app (game)

These companies are all relatively famous, but one that doesn't get nearly as much press, but has long pushed forward on a number of fronts is Everbank. From its website design (here), product marketing (here), to its foreign-currency certificates of deposit (here), the Jacksonville, FL-based bank continues to shine in an increasingly crowded online space (all previous coverage here). 

My inspiration for this post (see note) was the bank's marketing email today announcing its World Energy Index CD, a multi-currency certificate pegged to the currency of four western countries with better-than-average energy resources: Norway, Canada, UK, and Australia. I have no idea if this CD is a good investment, but I do know that Everbank has proven that even the narrowest niches can be profitable using the reach of the Internet.

Everbank Email

Header:
   Date/Time received: July 17, 4:07 PM (Pacific)
   From: Everbank News [service@everbank.com]
   To: James [jim@netbanker.com]
   Title: A new CD with a powerful combination - energy and currencies

Customer type: Current checking account customer

Personalization: First name in salutation

Landing page: none (homepage link only) 

Other offer: Third-party investment newsletter offer (link on right-hand side goes directly to newsletter publisher, Agora Financial Publications, landing page here)

Note: I have had an account for ten years at Everbank. Therefore, I see more of their marketing material and tend to write about them more frequently.

It's been a few months since a direct bank launched. The last one we've been tracking is FNBO Direct that launched in February (coverage here). FNBO has been in the news lately, with a video interview with Business Week (here).

The latest is Element Financial <element-direct.com>, a unit of Irwin Union Bank. The simple homepage layout includes an icons across the top that gives it a modern look (see below). 

Unlike most direct banks pitching high-yield savings, Element features certificates of deposit. The lead product is a 5.44% APY CD. Rates are displayed on a unique rate table with tabs across the top listing typical deposit sizes, $5,000, $25,000, $50,000, or $100,000 (see inset).  

For more on direct banking, see our previous coverage here or refer to our Online Banking Report, Lessons from the High-Rate Deposit Marketers (here).  

The FDIC database has been updated with Q4 numbers, allowing all the data miners to slap on their hard hats and get to work. Since reporting on the tepid third quarter of ING Direct (U.S.) (here), we've been looking forward to the year-end data.

The biggest surprise is that the bank not only reversed the Q3 account run-off, it managed to add 220,000 new accounts, its best fourth quarter ever. However, things weren't so rosy in terms of deposit balances, which increased just $800 million, the lowest Q4 increase since 2001 when the bank had less than $3 billion in total deposits.

For the full year, ING added $7.2 billion in deposit for an 18% increase, the first time the bank had less than 40% year-over-year growth. And almost the entire increase came in first quarter. The bank essentially had no deposit growth in the final nine months of the year (see table below).  

It will be interesting to see what impact its new high-rate Electric Orange checking account will have on deposit and account growth. The account was growing rapidly during the final stretch of the invitation-only launch period, growing from $1 billion on deposit Dec. 31, to $2.2 billion by mid-February (see coverage here).

The battle for online savings deposits has another entrant, First National Bank of Omaha. The new effort, branded FNBO Direct, launched in January according to Wikipedia and other sources. It's the second new direct bank of the year, following Direct Huntington earlier this month (see post here).

Both banks offer virtually identical products. DH pays 5 basis points more, but that's only $5 more per year per $10,000. FNBO has a $1 minimum, while DH wants $1,000 to open. Both use the CashEdge instant account-opening suite, on which we've commented before (see here).

Although, FNBO Direct clearly discloses its parent bank, the new savings account is completely separate from other First National Bank of Omaha accounts. It cannot be opened in FNBO branches, nor can it be linked to FNBO online banking.

FNBO Direct is not currently advertising at Google, Yahoo or BankRate.

*Yet another direct bank

According to an American Banker story last week (here), as of Feb. 1, ING Direct had cross-sold 42,000 (see note 1) checking accounts to its 4.3 million savings customers, a penetration of 1%. Keep in mind, the new checking account has been slowly rolling out over the past 60 days to current customers only (see note 2), and is not yet mentioned on the bank's website. It is expected to be launched to the general public within the next 30 days. 

You can view these initial results in two ways: 

Glass is half full -- Even with just 42,000 accounts, ING Direct may have the largest "Internet only" checking account base, at least when measured by the number of active accounts

Glass half empty -- Because ING Direct's checking account pays 50 to 80 basis points (0.50% to 0.80%) more than savings on $50,000+ balances, many (most??) of the new checking account customers simply moved large balances into the checking option, providing few incremental deposits.

Notes:

1. Make that 42,001 accounts. I just opened one this morning. It took all of about 30 seconds to do it. Existing customers simply choose an account nickname, enter the dollar amount they want transferred into the account (from the pre-existing link from an outside account), and agree to the disclosures. See below for the confirmation screen.
2. I received my invitation to open an Electronic Orange account last week (screenshot here). I've had an account there since 2001.

First reported by Bank Deals today (see note 1), Huntington Bank has recently launched a new direct bank, called DirectHuntington <directhuntington.com>. It goes against the naming convention of having "direct" follow the main brand name, but it shouldn't make too much difference. Still, the bank should secure domain-name rights to HuntingtonDirect.com, currently used by New.net Inc to post a few generic banking links and throw a pop-up or two at unsuspecting users. 

Huntington chose a color palette that makes it stand out from other financial institutions, a good move. However, the yellow 5.30% APR doesn't stand out as well as it should given its importance in the purchase decision (see sceenshot below).

But once again the CashEdge-powered online application leaves a lot to be desired (see previous coverage here and second screenshot below). But before you can even see the application, you must agree to the "Consent for Electronic Disclosure," a terrible first impression for someone who's thinking of sending you ten-grand or more (see screenshot below).

The upper-right Online Guarantee is a nice touch, but it links back to the main Huntington site which might be confusing for users (see screenshot below).

There is no mention of DirectHuntington at Huntington's main website <huntington.com>. However, there's a secret code (anywheresavings) you can enter into the Special Offers box that takes you to the direct banking site. 

*Yet another direct bank

Note:

1. The Bank Deals writer had a relatively uninspiring call with DirectHuntington's customer service when he researched the account. 

For the first time in its short six-year history, ING Direct's U.S. division showed declines in both total deposits and customer accounts during third quarter, the latest data available (see the table below, originally published in our year-end industry forecast, Online Banking Report #137). Although the runoff was relatively small – $600 million in deposits, or about 1% from the peak, and 150,000 accounts, or about 4% from the peak – it's a clear indicator that the entry of Emigrant Direct, HSBC Direct, and especially Citi Direct have taken a toll on the direct banking giant.

Looking at quarterly results below, you can see that average account balances began declining in Q1 2005, as some of the hottest money, large balances held by extremely rate-conscious consumers, moved to better paying accounts; still, total deposits and customers continued to grow rapidly through 2005 and into 2006. However, in the second and third quarters, deposits began to flatten as the number of accounts grew only 230,000 compared to 560,000 in the same period a year earlier.

ING Direct appears to have deliberately slowed growth by maintaining deposit rates 50 to 100 basis points lower than the new entrants. With its marketing muscle, the bank could choose to grow deposits if it closes the rate gap. The bank's new checking account, gradually rolling out to current customers, may help stem the tide, with higher rates for larger balances (see coverage here).

Table: ING Direct Deposit and Customer Totals: 2000 to 2006 (click to enlarge)

PDF version of this table here.

Everbank launched its "What are you waiting for?" campaign today by giving away 2,500 free subway tickets at 6:01 AM in lower Manhattan. The time was chosen to coincide with the 6.01% APR promotional start-rate on its FreeNet checking account (see Note 1). 

The campaign targets ING Direct's soon-to-be-released Electric Orange checking account, which currently pays beta users 3% on balances under $50,000 and 5.3% on balances greater than $50,000 (see Note 2).

Everbank launched a microsite called <whyruwaiting.com> with direct comparisons to ING Direct (see screenshot below).

Clicking the large Compare Banks button in the lower right leads to a comparison to ING Direct and several other major competitors (see screenshot below):

The campaign has not been extended to the Everbank website, which shows a banner for the 6.01% offer, but no mention of "Why are you waiting?" (see screenshot below). 

Clicking through the banner leads to the following page:

Notes:

1. The 6.01% is a promotional "teaser" rate is good for three months, then resets to the "regular" rate which are currently as follows: 
      Under $10,000 = 3.25%
      $10,000 to $25,000 = 3.30%
      $25,000 to $50,000 = 3.60%
      $50,000 to $100,000 = 4.00%
      More than $100,000 = 4.41%
   
   The minimum deposit is $1,500 and the maximum that earns 6.01% is $100,000.
2. ING Direct customers can also easily transfer funds into the companion savings account which pays 4.5%. ING's Electric Orange account began rolling out in waves to its 4 million savings account customers in December (see coverage here). Coincidently, I received my invitation yesterday (see screenshot below). 
   
   

In a Jan. 1 case history published in Direct Magazine (article here), HSBC Direct says it has attracted 350,000 customers since the launch of its high-yield savings account just over a year ago (Nov. 2005).

Assuming typical high-yield balance levels of $8000 to $10,000 per account (our estimate), the bank has attracted more than $3 billion in deposits. The bank has marketed its 5%+ APR account heavily, so it's not likely that the new business is making much of a profit contribution yet. 

Based on the bank's reported online ad spending, its acquisition costs were $75 per account from the online spending only, not including what it spent in other media to support the direct business unit (see note 1).

The bank said it is working on new products to offer through the direct bank. This is a crucial step in the evolution. There just aren't enough customers with $10,000 savings balances to feed all the financial institutions looking for new deposits. HSBC's ability to sell other services to its 350,000 new customers will determine the long-term success of the direct banking initiative. 

Thanks to former Forrester senior analyst, Ron Shevlin, now VP at Epsilon, for the link in his Marketing ROI blog. 

Notes:

1. According to data from TNS published in American Banker here, HSBC spent $20 million online during the first three quarters of 2006. To calculate the acquisition cost we annualized the online spending and divided by 350,000. This calculation excludes the portion of non-Internet advertising that went to support the direct unit. The bank's total ad spend was $42 million during the first 3 quarters of 2006.

Kiplinger published an article on the state of online banking (see article here). It's an interesting read, but it's the WT Direct ad in the upper-right corner that I found most interesting (see screenshot below). WT Direct is the new direct banking arm of Wilmington Trust (see coverage here).  

It's a Flash animation that's part parody of the whack-a-mole banner ad and part a direct shot at ING Direct.

Viewers are directed to:

"Hit the ball and get a really great rate."

That's when the humor begins. Attempting to move the cursor over the ball causes the ball to move away. So there is no way to actually click on the ball. After a few seconds a new screen appears with two words, "Give up?" It's a not-so-subtle dig at  ING Direct rates which are revealed on its homepage usually after an orange ball bounces across the screen. ING Direct is currently paying 0.75% less than WT Direct on a $10,000 balance (see note 1).   

Then finally, it's revealed who is sponsoring the ad, WT Direct: 

The landing page reinforces the banner ad with a direct comparison to ING Direct's payout with the animated graph in the lower-left corner (see screenshot below).

Nicely done.

Notes:

1. After the first 60 days, balances of less than $10,000 earn just 0.6% at WT Direct. ING Direct pays 4.5% on all balance levels.

It may be premature to give the direct banking trend a cynical acronym such as YADB, meaning "yet another direct bank" (see Note 1). However, it's getting more difficult to distinguish one 5% high-yield offer from the 27 others (see Note 2).

The latest top bidder on Google (see End Notes) is WT Direct <wtdirect.com>, a new direct banking brand from Wilmington Trust. Its sole product is a 5.26% APY savings account. To encourage trial, the bank pays the advertised rate on any balance for the first 60 days. On day 61, the rate drops 466 basis points to 0.60% unless you've stored $10,000 or more in the account. The bank clearly discloses both rates.

The homepage is direct and to-the-point (see Note 3). While not as flashy as ING Direct or iGObanking, it communicates the benefits in an efficient manner. The landing page from its top-ranked Google ad (see Note 4) is better, with a chart showing how it beats ING Direct.

The application is well conceived (see below), with few of the problems identified in our earlier critique of iGObanking's online app (see previous post here). The one improvement we'd recommend: Divide the personal info section into two steps, first getting the "public" info (name, address, email address), then asking for the private stuff (SSN, driver's license, etc.).

End Notes

1. Modeled after YASN, a term used in tech circles for "yet another social networking site."

2. In BankDeals' weekly high-rate summary, 27 banks were identified as offering 5% or more APY on online savings accounts (see post here).

3. WT Direct homepage screenshot (click to enlarge)

4. WT Direct search ad on Google (4 Dec. 2006 search on "savings account gifts" from Seattle P.I. at 3 PM PST)

<Updated 12/1/06 with more details>

Two new entrants in the so-called high-yield savings market launched this week:

• E*Trade Bank <etradebank.com>: Its new 5.05% Complete Savings Account was advertised in the Wall Street Journal today and took next-to-top honors in Google search results for "best savings accounts" (see end note 1, screenshot below).
• iGoBanking <igobanking.com>: The new online brand from Flushing Financial launched Monday with a 5.3% rate on an online savings account (see end note 2, screenshot below).

iGoBanking (click to enlarge)

As previously reported, Flushing Financial launched its entry into the online savings market. The 5.3% APY no-minimum account ranks as the fourth highest in the nation according to the Bank Deals blog (see list here). The rate leader continues to be E-Loan's at 5.5% (see our coverage here).

However, iGo can claim the highest no-minimum rate in the nation since E-Loan and the others require at least $5,000 to qualify for the higher rate.   

The bank will focus on deposits, CDs, and savings in 2007 and may expand to home equity and mortgage lending in the future.

Analysis
The website is attractive and relatively well designed. The online application is hosted by CashEdge (see related post here). Unfortunately, the outsourced application fails to maintain the look and feel of the main website and may cause a few applicants to second guess their decision to sign up (click here for a more thorough analysis of its application design). 

E*Trade Bank (click to enlarge)

E*Trade's Complete Savings account builds on the direct bank's lineup of award-winning products (see previous coverage here). The bank flat-out understands the market and the medium.

The landing page for the new savings offering is brilliantly laid out with Google-like simplicity using just 25 words of copy (other than the table and the below-the-fold fine print). Notice how they show specific competitive prices, including high-yield market leader ING Direct. But what most consumers will remember from the chart is the "6X national average" rate.

Finally, the "Open an Account in Minutes" and "Free, one-click transfers to and from any institution" address user concerns on both those issues. And the small padlock with E*Trade's protection guarantee helps users understand security issues.

End notes:

1. Search conducted at noon PST, Nov. 29 from Seattle IP address (see screenshot below).
2. Source: American Banker, 29 Nov. 2006 (article here)

Google search results for "best savings account"

As previously reported here, direct-banking giant ING Direct (U.S.) <ingdirect.com> will soon be in the checking account business with the Feb. 1 launch of Electric Orange.
(No word on whether the German band of the same name will be part of the launch event.)

In an interview published yesterday in Delaware's The News Journal, CEO Arkadi Kuhlmann revealed important details about the effort:

• It would be made available to about 10% of the bank's 4.4 million customers in December
• The nationwide launch is scheduled for Feb. 1
• ING Direct is planning to add 500 workers at Wilmington's headquarters to support the product, an expansion of more than 50% from its current headcount of 900
• The account will NOT have paper checks, but it will allow customers to print one from their home computer if necessary
• The interest rate will be 3%, about a third less than its savings rate of 4.4%
• Surcharge-free ATM access will be provided through the Allpoint network of 32,000 machines

Product postioning
While the account sounds relatively standard for an online-only checking account, the ability to print a check from home is an interesting feature we haven't seen before. It sounds like ING Direct will be marketing ease-of-use benefits, most likely centered on the bill payment function.

The catchy name combined with ING Direct's marketing flair (see picture right from its Chicago cash-cow promotion) should make for an interesting product launch. We'll be paying close attention here and testing the account as soon as possible.

Analysis
There is little reason for most consumers to choose a branchless bank for their main checking account when they can get free checking PLUS branch services at their local financial institution. ING Direct has long understood this and has not squandered resources on a limited-appeal product.

However, with more than 4 million customers, they have a large enough base to make a profit on a checking account, even a (relatively) lightly used one.

Due to the bank's ease of use and well regarded brand, it should be able to convince a portion of its base to use Electric Orange checking as an auxiliary account, perhaps as the household bill-pay account.

If the bank moves 5% of its $47 billion in savings deposits into the checking account, it would save $3.5 million annually in interest expense. Add another $3 billion in net new deposits at a 3% spread and Electric Orange pulls in $10 million per year, enough to cover expenses anyway.

After a string of divestitures and the shuttering of money-losing operations, NetBank is returning to its core retail banking roots (see coverage here and here).

Whether the company remains an independent entity is up to its management and shareholders, but at least one analyst is speculating about a 2007 sale.

While not in a position to judge the value of the entire enterprise, I do know the brand itself has considerable value. The URL alone is worth millions. It could make a nice entry point into the U.S. market for an international bank looking to capitalize on the direct banking model, e.g., ING Direct.

The bank was launched in 1996 as Atlanta Internet Bank and went public in mid-1997. It was renamed NetBank in 1998 after securing the rights to the domain name for a reported $150,000.

NetBank was the second Internet-only U.S. financial institution, the first to go public, and the first to become relatively well known.

If you thought it was tough competing with the direct banks and their 5% savings products, now you have a legitimate company advertising rates of 8% or more. Of course, this is no FDIC-insured product; it's the interest rate paid to lenders at Prosper's person-to-person loan marketplace.

The person-to-person lender was bidding aggressively today at Google on both "high yield savings" and "online banking." The ads typically made the fourth position in the right-hand column, putting them "above the fold" (see inset).

The company is testing three different ads, all focused on rate levels substantially higher than the 5% to 5.5% advertised by the competition. Prosper is testing a straight up "8%" ad, an "8% to 12%" ad, and an "8% to 29%" one (see below). 

The ads lead to one of two landing pages. Here's the slick one that looks more "bankerish": 

Or the more "Web 2.0" version that no one will confuse with a bank ad. There is even a small eBay logo visible in the screenshot (used by one of the participants seeking to bankroll an eBay store), a smart touch for a company that is positioning itself as "the eBay of lending." 

All-in-all, it's a good effort put forth by Prosper, which can only succeed if it attracts enough money into the marketplace. 

For more information on Prosper, Zopa, and the entire person-to-person market, see Online Banking Report #127.

Savings accounts paying 5% or more are a sweet spot for consumers by allowing them to beat inflation with little risk. According to Bankdeals blog, <bankdeals.blogger.com>, 22 U.S. banks are currently paying 5% or more on consumer savings accounts (see BankUnited's "Sweet Rate" in inset).

While there's been much talk about online-only banks and their competitive threat, only 4 of the 22 fit this definition. The other 18 are traditional branch-based banks, often marketing the higher yielding accounts through direct banking brands such as HSBC Direct (see 26 Aug 2005), MyBankingDirect from New York Community Bank, or the latest entrant Grand Yield Direct from Apple Bank for Savings (see Sep 27). 

The traditional banks are evenly split on how they market the higher-yield product. Ten use a separate brand which is often not mentioned on their main website. Six of the ten simply append a "direct" to their main brand. The other eight market high-yield accounts online under their normal brand, but two (Zions and Wamu) hide the higher rate accounts from users of their main websites. 

Here's the list as posted Oct. 7 at BankDeals:

Pure direct banks with little or no branch network (minimum balance to earn rate, if more than $1,000):

• E-LOAN - 5.50% (min $5K)
• GMAC Bank - 5.25%
• Countrywide - 5.25% (min $10K)
• CapitalOne/Costco - 5.14%

Direct brands of traditional banks (parent):

• AmTrustDirect (Ohio Savings) - 5.30%
• UFB Direct (United Federal Bank) - 5.27%
• AmboyDirect - 5.25%
• Grand Yield Direct (Apple Bank) - 5.25%
• EmigrantDirect - 5.05%
• HSBC Direct - 5.05%
• Citibank Direct - 5.00% (requires checking)
• FirstFedDirect - 5.25% (closed to CA residents)
• UmbrellaBank.com (New South Federal) - 5.10% 
• MyBankingDirect (New York Community Bank) - 5.10%

Traditional banks with links to the high-yield account from its main website:

• BankUnited - 5.35% (min $5K)
• OneUnited - 5.25%
• Security Savings Bank 5.25% 
• Heritage Bank Online 5.20%
• Presidential - 5.12% (min $5K) 
• Mutual Bank - 5.10% (min $5K)

Traditional banks with "secret" online-only offer (not linked to regular product pages):

• Zions Bank - 5.24%
• Washington Mutual - 5.00% (requires checking)

Yesterday, a new advertiser appeared at the top of Google searches for "high-yield savings accounts (click on inset for closeup)," Apple Bank for Savings <theapplebank.com>. The New York-based thrift is marketing the 5.25% APY account under the brand name, Grand Yield Direct <grandyielddirect.com>.

To market the account, the bank uses a single-product microsite powered by Digital Insight (see screenshot below). The Apple Bank name and logo appear in the lower-right corner in a subtle graphic image, but there are no links back to the main bank site. The online application is hosted by CashEdge (click on continuation link for screenshot).

The new product joins an increasingly crowded field that just two years ago was owned by ING Direct. Just yesterday, E-Loan launched its 5.5% savings account (see NB 26 Sep).

First page of the online application hosted by CashEdge

As we reported Aug. 16, Washington Mutual Bank is looking to win back some of the high-yield deposit business from ING Direct, HSBC, and Citibank. The bank is now bidding aggressively on Google with its "5.00% APY" landing it in fifth place for "savings accounts" (placing it second on the right-side list) and eighth for "high-yield savings" (see inset, search conducted 21 Sep, 1 pm PDT, from Seattle IP).

After clicking through the ad, potential customers are delivered to a well-designed landing page further emphasizing the "5.00% APY Statement Savings" rate (see screenshot below, click for larger view). Wamu continues its year-long effort to lampoon bankers with the three-piece suited icon "complaining" about the high rate paid on savings (see also, 28 April).

A new Wamu checking account (opened after 11 March 2006) is required to take advantage of the special rate. That important fact is downplayed on the landing page but is obvious once the user clicks through to the application (see screenshot by clicking the continuation link below). Furthermore, both accounts must be opened online. However, deposits can be made in the branch.

Wamu landing page from Google ads on "savings accounts" (see continuation link to see full page with fine print)

Full landing page (with fine print)

Full application

Bank of Internet <bofi.com>, has launched its second niche, direct-bank brand, MyRVBank. This one is targeted to the 8 million U.S. households with recreational vehicles. The site is virtually identical to its Senior Bank <seniorbofi.com>. The only differences, aside from the URL, are the homepage picture, different button designs, a few unique links in the Community Center and the blog. Click on the screenshots below for closeups (follow the continuation link at the bottom of the article to see a comparison of the product pages).

Analysis
Creating microsites for market niches is a good strategy. The RV market has been targeted by at least two banks in the past, Chase Bank in 1997 and Affinity Bank. Neither of those programs is still in operation.

Bank of Internet shows how to do niche marketing on a shoestring budget, basically re-purposing its existing Seniors' website. The bank said it spends less than $100,000 on the niche site. From the looks of it, I'd estimate it's quite a bit less than $100,000.

The only content differences are in the Community Center which contains several links to blogs and other resources of interest to RVers. The bank also sponsors a blog, MyRVBank Blog, hosted on Google's free Blogger site <myrvbank.blogspot.com>.

Blogging is a great idea, and we think every financial institution will eventually host a blog (see NB Aug. 29); however, the bank's RV blog is bad. It's designed to demonstrate the joys and pitfalls of life on the road, with a hired guest blogger, Tim McWhorter, chronicling his year-long trip with his wife and four kids across the country.

Here are a few of the problems with the blog:

1. No pictures: Travel blogs MUST have pictures at least every once in a while
2. Small type: The font is small and the text-only postings have almost 25 words per line, an uncomfortable read for most users, especially the seniors they are trying to attract.
3. Poor layout: The blog doesn't even use many of the free tools available to make it more visually interesting; for example, entries without dates, no author profiles, no explanations of purpose, no recommended links, no post categories, and no permalink so other blogs can link to specific entries.
4. No email address: Most blogs provide a means to communicate with the author(s).
5. No RSS feed: The blog does not allow users to sign up for an RSS feed.
6. Infrequent posts: There are seven posts since the supposedly grand RV adventure started June 24; only three about the trip and four generic posts about fuel economy, buying an RV, and so on.
7. Boring: It's just as well that there are few posts, because what's there is mind-numbing dull. Here's an excerpt about the trip:

When we came back outside, the sky had darkened and thunder was easily heard off in the distance. We had five miles to get back to our car with several large uphill climbs ahead of us! Yikes! We made it back to the car and loaded up the bikes. We did not even make it out of the parking lot before it started pouring down rain! We were very relieved to make it back before the storm which was also accompanied by high winds and lots of lightning.

Bank of Internet has the right idea here, but they need to invest a bit more in design and content to make its niche marketing effort more appealing. In addition to sprucing up the blog, the bank should work with marketing partners such as KOA to provide more RV-related value adds. The bank should also do a better job highlighting features of interest to frequent travelers, such as the $10 month in ATM surcharge rebates.

--JB

Appendix: Product page comparison, Senior Bank vs. MyRVBank (click for closeups)

 

HSBC <us.hsbc.com> is offering new Smart Idea checking customers a free night at participating Marriott hotels, and are even tossing in breakfast for two. The only major requirement, as outlined in the relatively scant fine print (click on continuation link at the bottom of this article), is a direct-deposit relationship or $3,000 deposited by the end of September. The screenshot right shows the offer on the bank's homepage (click to enlarge).

Here's the landing page for the offer (first click off the homepage):

Analysis
This is a good offer because the perceived value of $200+ is likely far less than what HSBC is paying for it, which we estimate is considerably less than $100 due to the exposure Marriott receives. While it may not appeal to the stay-at-home crowd, they are not the target market for HSBC's premium checking account.

We also like the alternative to dropping $3 grand in the account in lieu of direct deposit. That appeals to small business owners and the self-employed who often are ineligible to participate in many bank premium offers  that require direct deposit. However, the bank should work with the single-deposit customers to get some electronic hooks into the account as soon as possible, either electronic bill payments, pre-authorized debits, or an integrated credit line with automatic payments from checking.

--JB

Notes:

Fine print for HSBC's offer:
* Minimum balance to avoid monthly maintenance fee applies if direct deposit ceases. To receive the Marriott award, customers must open an Interest Checking account by 9/30/06 and either set up direct deposit or deposit at least $3,000 by 10/31/06. Interest Checking Account has 0.15% Annual Percentage Yield (APY), which is accurate as of 8/1/06 on balances of $5 or more. APY is variable and subject to change after opening. Charges and fees may reduce earnings. HSBC reserves the right to charge your Interest Checking account an amount equal to the bonus if your account does not remain active for at least 180 days. Hotel redemption forms will be sent to qualifying customers by 12/31/06. Hotel award includes accommodations for a one (1) night stay, including breakfast for two and room tax, at participating Marriott properties in North, South and Central America, Hawaii and the Caribbean, subject to availability. Breakfast not included at SpringHill Suites and TownePlace Suites properties. Hotel reservations must be booked and used by 1/1/08. Limit of one hotel award per customer. Cost of gift will be reported on IRS Form 1099.

** The Introductory APR does not apply to cash advances. After the Introductory Period or if during the first 12 billing cycles of your Account, whichever is earlier, your Minimum Payment (or any greater amount) is late or you exceed your credit limit twice, the Introductory APR will increase to the Customary APR. The variable Customary APR is 11.99%, 15.99% or 18.99% (as of 8/1/06), depending upon your creditworthiness. There is no balance transfer fee for balance transfers that post to your Account within 90 days of your Account opening; otherwise a 3% ($5 minimum, $50 maximum) balance transfer fee will apply, unless otherwise disclosed. We apply payments to lower APR balances before higher APR balances. We have the right to change your APRs, fees, and other terms at any time, for any reason including, but not limited to, any change in your credit history, credit obligations, Account performance, use of your credit lines with us or any creditor, or our financial return. Any changes will be in accordance with your Cardmember Agreement and applicable law.

Ohio Savings Bank <ohiosavings.com> is marketing CDs through a direct-banking subsidiary, AmTrust Direct. The company is currently topping the 1-yr CD chart at BankRate.com with a 5.35% APY. Users can click through to the direct-banking site (see screenshot right) through an enhanced listing at BankRate.com.

The direct banking offer is only 35 basis points higher than the 5.00% offered at the parent, Ohio Savings, or its AmTrust Bank <amtrust.com> division.

---JB

In more direct banking news,* Citibank landed all over the media with the launch of a 4.5% no-minimum-balance savings account. A Citi checking account is required to qualify. The reason for the media attention had nothing to do with the rate, and everything to do with the channel conflict inherent in the offer.

The first line of fine print under the offer was (click on screenshot below for closeup; click on "Continue reading..." below for the full text of the mousetype):

This offer is not available at Citibank financial centers

Many stories contained an inaccurate observation that Citibank was launching an entirely new Internet bank. This inaccuracy seems to have its roots in the Reuters wire piece that first discussed the savings account offer.

The truth: This is NOT a new bank. It's NOT a new website. It's NOT even a strategic shift for Citi, which has previously made high-rate deposit offers to online customers (see OBR 120/121). This is simply a new advertising campaign targeted to online users, especially those frequenting Yahoo's homepage (click on inset to see the ad positioning).

Any of Citi's existing 2.5 million online banking customers can open the account by logging in to online banking and selecting "open an account" and following the directions. A small link in the lower right of the landing page directs existing Citi customers to these instructions.

Initial funding can be made by mail, credit card, debit card, or ACH (electronic interbank funds transfer). After the account is open, additional deposits can be made at Citi ATMs or through IN-BRANCH deposits.

Analysis
You've seen high-rate savings account offers before. There is little new here. What can you really say about a savings account once you deal with the rate and the balance requirement?

What sets Citibank apart in this instance is its near-perfect sign-up form (click on inset right). The page is dominated by a banner promising that it will "take 10 minutes & 4 simple steps." The bank backs that up by showing the four steps immediately below the banner.

1. Tell us about yourself
2. Confirm your identity
3. Fund your account
4. Provide your E-Signature

Although these steps are the same as what thousands of banks have done for years, Citi's language is exceptional in its clarity and how it addresses consumer fears. The "confirm your identity" demonstrates the bank's commitment to stopping fraud. The "provide your e-signature" lets customers know they won't have to mail some old-fashioned signature card to the bank before they can start enjoying the new rate.

The bank also uses several other devices to ensure that customers feel confident about acting on this offer:

• "We care about your privacy and security" box with link for more info (upper left)
• VeriSign clickable logo (left)
• Ability to save and complete the application later (upper left)
• Ability to print a blank application to mail in (upper left)
• Link to account details and fees (upper right)
• Link to live chat or toll-free number (right)

But we called this "near-perfect" for a reason.

There are several concerns not addressed on this page:

• Timing: How long will it take before my initial deposit starts earning 4.5%?
• Guarantee: Even though they address the need to confirm your identity, the bank doesn't come right out and guarantee the safety of the process.
• No reinforcement of account benefits: Although it's been only a few moments since the customer navigated to this page, don't let them lose sight of why they should go through the uncomfortable process of typing their personal details into a browser that may or may not be transmitting their keystrokes to Uruguay. Keep that 4.5% number right in their face.

Another weakness: navigation overload. Citi has included its full My Citi personal navigation across the top along with all the site utilities in the upper right. While this is helpful for research purposes, it tends to be distracting and will pull customers away from the savings account application.

Final Grade
Despite a few minor weaknesses, it's impressive work. Definitely scores an A and is closing in on A+.

Web address for offer: http://direct.citibank.com/CBOL/06/esavings/default.htm?

*We've started a new Direct Banking category for Financial Marketing Week, so you can easily find all the articles on the topic with a single click.

Continue reading "Citibank's 4.5% Direct Banking Savings Account" »

The new website for previously announced U.S. direct banking effort from Puerto Rico-based Popular Inc. <bancopopular.com> is just five weeks away from launch. According to its website <populardirect.com>, "A whole new Popular Mortgage Online coming May 1st 2006." The company is also using <pmexpress.com> to direct traffic to the new site.

The current website for Popular Mortgage is <popularmortgage.com>. There is no hint whether high-yield savings accounts will be offered at the outset.

--JB

April 6 update: An article in today's American Banker outlines Popular Inc.'s overall goals for its U.S. expansion, including an expected $3 billion in deposits through its upcoming direct banking initiative. The timetable for the $3 billion isn't spelled out, but it sounds like a 2008 year-end goal.

During the height of the bubble, there were dozens, perhaps hundreds of banks secretly planning to launch Internet-oriented brands. But the strategy fell out of favor with the very public downfall of WingspanBank, which lost funding during a corporate restructuring at Bank One; followed by the collapse of NextCard, which went belly-up after a ill-advised bet on sub-prime credit.

But despite these public failures, there was never anything wrong with the underlying strategy. Quite the opposite. Direct banking has been a viable business model ever since deposit deregulation in the 1970s. The Internet only makes it easier to reach and serve customers.

Case-in-point: ING Direct, still not five years old in the United States, has amassed 2.5 million accounts holding $29 billion in deposits at year-end 2004, making it the 30th largest financial institution in the United States. If they continue to grow at the same pace, they should be close to cracking the top-20 by this time next year. Their laser sharp focus on savings accounts, trendy branding, and consistent high rates has put them on the map.

This success has not gone unnoticed around the country. They are frequently discussed at industry gatherings and internal planning meetings. However, you aren't likely to see many of its more traditional competitors jumping on the high-deposit bandwagon. It doesn't make sense for them to alienate their customers and branch employees by offering higher rates online. And they are not about to reprice their entire deposit base to compete with ING Direct and the other high-rate institutions.

However, I think you will see smaller banks look to the Internet for growth using new brands or brand extensions. In perhaps the most aggressive launch since ING Direct in 2000/2001, Emigrant Savings practically owns the deposit real estate at BankRate.com. In a recent visit, the bank's Emigrant Direct brand not only had the top banner, they also bought the skyscraper on the left-hand side, effectively "framing" the entire content screen (click in the inset for a better look).

Note to ING Direct, check your skyscraper ad at BankRate.com (see above). Emigrant Direct has hung a small ad on the bottom of your banner that looks like part of your ad. I hope you are at least getting a discount from BankRate.com. 

--JB

If you'd like to learn more about the future of online banking include internet-only, check out the Online Banking & Bill Pay Forecast: Current, future and historical usage: 1994 to 2016 from our sister publication, The Online Banking Report.

BankBlackwell, a new Internet-only bank targeting African-Americans, began it's roll-out today, with its first press release announcing OTS approval. The bank hope to launch this summer, provided they raise sufficient capital and pass regulatory muster.

CEO James Mundy and CIO Bruce Narison briefed me on the bank last fall, and they have impressive plans. We'll keep you posted as they lift the veil on their online banking platform.

Analysis
BankBlackwell is the latest of a string of Internet-oriented banks using affinity marketing techniques. The two most prolific are: National Interbank which runs a number of banks for professional membership organizations such as the American Medical Association and The Bancorp Bank which has private-labeled banks for 40 organizations.

Affinity marketing is a proven strategy in the financial services arena, enjoying great success during the past 15 in the credit card market. We think there's a great future in affinity-based online banking. As consumers grow more confident of web-based financial entities, they will be more than happy to take a few moments to set up an account and transfer a few grand into a higher-yield situation.

-- JB

If you'd like to learn more about the future of online banking, check out the Online Banking & Bill Pay Forecast: Current, future and historical usage: 1994 to 2016 from our sister publication, The Online Banking Report.

In 1999, we published a report entitled Virtual Checking Accounts: On the Web it's the plastic that matters (OBR 50/51, July 27, 1999). Our hypothesis was that web-based access, electronic transfers, and a Visa or MasterCard were really the primary transaction tools going forward.

It has happened as fast as we thought it might. Two early proponents of this strategy, WingspanBank and Juniper, really never got off the ground, though Juniper did create an impressive credit card portfolio that was recently sold to Barclays.

Fast-forward to six years, HigherOne is working with 13 college campuses to offer its OneAccount, combing college ID, MasterCard debit, financial aid depository, electronic funding, and of course, website access.

Analysis
It's a trend worth watching. As today's teens and twenty-somethings move through their inevitable financial growth, they are going to think less about the bricks-and-mortar of THEIR BANK, and more about the website and plastic.

If you'd like to learn more about the future of online banking, check out the Online Banking & Bill Pay Forecast: Current, future and historical usage: 1994 to 2016 from our sister publication, The Online Banking Report.

The Wall Street Journal published a story today that marks the growing importance of branchless online banks, Online Banks are Boosting Yields. Our sister publication, Online Banking Report, was the source for the article's market statistics on branchless banks, which have developed a small, but significant following around the world.

In the United States, there are several dozen branchless banks, but more than three-quarters of the total branchless bank deposits are held by two banks, ING Direct and E*Trade Bank. Total branchless bank* deposits in Q3 2004 were about $65 billion, or 1% of all U.S. deposits, or about 2% of all deposits under $100,000. See below for more specific details.    

Branchless Bank Deposits
As of Sept 30, 2004, the deposit totals of the major branchless banks are as follows:

ING Direct       $26 billion in 1.9 million accounts ($14,000/acct)
E*Trade Bank  $23 bil in 2.3 million accounts ($10,000/acct)
NetBank          $2.7 bil in 200,000 accounts ($14,000/acct)
Everbank         $2.3 bil in 370,000 accounts ($6,200/acct)
All the rest      $5 to $10 billion total
--------------------------------------
Total               $60 to $65 billion

Total US Deposits
The total amount of deposits held in U.S. commercial banks on 9/30/04 was $6.4 trillion including retail and commercial deposits.

If you look only at deposits of $100,000 or less (a proxy for retail deposits), total deposits were $3.7 trillion.