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Cyberbanks: anytime, anywhere

Online customer
Shapleigh demonstrates the convenience of virtual banking  
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.

vxtreme CNN's Marsha Walton shows us a different way to bank

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.

www.atlantabank.com

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  

"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.

 
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