Cyberbanks: anytime, anywhere
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Shapleigh demonstrates the convenience of virtual
banking
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April 18, 1998
Web posted at: 2:39 p.m. EDT (1839 GMT)
ATLANTA (CNN) -- Is bigger better?
Internationally, the banking industry seems to think so.
In Europe and in the United States, multibillion-dollar banks
are joining forces in what they say is an effort to offer
more services to customers and earn more in return.
But as the traditional banking sector consolidates, a
nontraditional one is emerging in an area where the world's
borders collide: cyberspace.
Take the Atlanta Internet Bank, for example.
It's been in business for roughly 18 months, and has assets
of $175 million -- small, compared to its billion-dollar
competitors.
But with the changing landscape of the banking industry, and
the growing popularity of the Internet, Atlanta Internet Bank
President Don Shapleigh Jr. sees a tremendous growth
opportunity.
Bigger banks sometimes charge bigger fees, Shapleigh says.
"So (bank mergers) may not be always perfect for the
customer. They sometimes get lost in the shuffle," he told
CNN.
While the merger of NationsBank and Bank America -- to create
the largest bank in the United States -- will offer customers
the convenience of coast-to-coast banking, cyberbanks have a
different mantra: anywhere, anytime.
Plus, consider these cost-savers: no branches, no marble
floors and no security guards or tellers to pay. It all
translates into lower overhead. The Atlanta Internet Bank
does employ consumer service representatives, however.
And, it offers full banking services: checking and savings
accounts, money markets, CDs (certificates of deposit) and
home mortgages.
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With no branch offices, tellers or security guards,
Internet banks save money on overhead costs
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"Also, because we are smaller, we move quicker, make
decisions on new products faster than larger banks,"
Shapleigh says.
Analysts and banking regulators expect the cyberbanking
sector to grow. But experts warn that customers should be
extra careful before sending money to any online financial
institution.
Check with the Federal Deposit Insurance Corporation (FDIC),
http://www.fdic.gov, to find out if you are giving your money to a reputable institution.
Many traditional banks also offer services on the Internet.
Correspondent Marsha Walton contributed to this report.