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A growing trend is giving some name-brand banks a run for their money.
Unhappy with inflated ATM fees and hefty checking account surcharges, more customers are opening an account with an Internet bank and heading to their computers to manage their money.
According to the Online Banking Report, 36 million American households were banking online in 2004. They predict that the number will grow to 50 million by 2008. In fact, one Internet bank says it is thriving on people who are tired of paying for bank branches they don't use.
"Opening and funding an account with NetBank takes minutes and it's all done from the convenience of your home or office," said Jerry McCoy, chief marketing executive for Atlanta-based NetBank, a company that operates on the Internet.
While NetBank may not be for everyone, it is safe to say that the company is grabbing a growing number of consumers' attention, including professionals who don't keep bankers' hours and travelers who are on the road more than they are at home.
"Our focus continues to be on becoming the easiest bank in America to do business with," said Douglas K. Freeman, chairman and chief executive officer of NetBank Inc.
This includes having more than 8,000 automated teller machines in all 50 states; offering free next-day deposits and payments through any of the 4,000 locations of The UPS Store nationwide; online bill paying; and various other services already offered at traditional brick-and-mortar banks.
By using the Internet as its milieu instead of a physical location, the company can reduce its operating expenses and pass along the savings to its customers in the form of lower fees and higher interest rates on deposits (up to five times the national average).
NetBank maintains that consumers have greater control over their overall financial picture through features such as real-time account management, account aggregation and account-to-account transfers.
Although some may remain hesitant about an Internet business model for banking, Mark Resnick, director of sales for NetBank, insists that this is the wave of the future.
"We design our products and services to fit the needs and lifestyles of our customers," he said.
Currently, NetBank offers everything from traditional checking and savings accounts to mortgage and auto loans, homeowners insurance and various other financial products.
For more information, visit www.netbank.com. - NU |
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