E*Trade joins a packed field of Web bankers
Article Abstract:
E*Trade Group Inc.'s announced plan to acquire Telebanc Financial Corp, an online banking firm, does not mean the company will not face strong competition in the market for Internet-based banking services. A number of major banks have already established footholds in online banking several years ago. Wells Fargo & Co. has been offering Internet-based banking since 1995 and has 840,000 customers who use its service. Chase Manhattan Corp. established its online service in 1997 and has 400,000 customers. By comparison, Telebank, the main banking unit of Telebanc Financial and by far the largest bank without actual branch offices, has just about 70,000 customers. Citigroup Inc.'s Citibank, the largest bank in the U.S., plans to launch a full-service Internet site later this year that will offer banking, investment and insurance services. A number of other large banks, such as First Union Corp. and Bank One Corp., plan to speed up their entry into the online market. However, E*Trade should be a tough rival to the big banks due to its marketing savvy and the fact it can offer its new banking services to its over one million customers.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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Small firms face tighter credit due to Y2K threat; banks walk thin line in warning of risk but not angering borrowers
Article Abstract:
Banks are taking the year 2000 computer problem into consideration when evaluating new loans, in accordance with federal regulatory advice. This development places banks in the delicate position of answering regulators while pleasing customers. Some banks already are demanding that new borrowers prepare for possible year 2000 problems. Small companies, unlike most of their large-business counterparts, seem to be avoiding Y2K compliance. Only 25% of small businesses owners familiar with the year 2000 issue have taken preventive measures and 50% intend to take no action before 2000, according to a May 1998 study by Wells Fargo Bank. Many lenders hesitate to specify potential disciplinary measures for fear of losing new accounts. The Federal Financial Institutions Examination Council is asking banks to demand 'additional collateral' from borrowers that do not demonstrate year 2000 preparation.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Virtual 'Net' banks offer real savings: on-line services with lower overhead, fees proliferate
Article Abstract:
Pure Internet banks are increasing in popularity because they offer savings in addition to convenience. Customers can use PCs to access their accounts any time for functions that include making deposits, transferring funds, paying bills and applying for loans. Lack of overhead enables virtual banks to pass along higher returns and lower fees to their customers. Atlanta Internet offers a 4% yield for certain checking accounts, compared to traditional banks's 1% to 1.5%, according to Atlanta Internet CEO D.R. Grimes. On-line banking services has expanded from around 200,000 customers in 1995 to approximately 4.5 to five million people today, or around 5% of US households, according to monthly trade newsletter Online Banking Report. Predictions call for the number to reach approximately 22 million customers, or 21% of American households, by the end of 2001, Online Banking Report added.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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