Telebank Launches Virtual Insurance Center With Answer Financial Inc.
Largest Internet Bank Continues to Expand Benefits to Growing Customer Base
ARLINGTON, Va.--(BUSINESS WIRE)--Sept. 21, 1999--Telebank (http://www.telebank.com), the nation's leading and largest online bank providing FDIC-insured products and services via the Internet, Tuesday announced the launch of its virtual insurance agency through a strategic partnership agreement with Answer Financial Inc., parent company of the Insurance Answer Center (IAC).
Through this exclusive partnership, co-branded links between the two partners' Web sites will allow Telebank customers to access the IAC's password-protected online source of insurance products and services, while also providing Answer Financial's nationwide base of partners and customers with a direct link to Telebank's FDIC-insured savings products and Internet banking services.
''The Insurance Answer Center provides Telebank's customers with a secure Web-based platform for convenient and unbiased comparisons of multiple insurance carriers, an important benefit for our growing base of Internet-savvy customers,'' said Mitchell H. Caplan, president and chief executive officer of Telebank.
''And because the IAC's customers understand the added value of using the Internet to manage their personal finances, the partnership provides Telebank with a powerful online customer acquisition tool.''
The IAC is a one-stop integrated connection to shop, compare, initiate purchases and receive service for auto, home, life insurance and annuities, as well as pre-paid legal services and home warranty programs from more than 80 top-rated insurance carriers.
The IAC is currently offered to more than 60 employer programs and affinity groups nationwide with plans to roll out to more than 4 million consumers by year-end.
''We're very pleased that Telebank has chosen the Insurance Answer Center to be its insurance product hub,'' said Alan C. Snyder, president and CEO of Answer Financial. ''And now that we can offer Telebank's products and services alongside our own, our members will gain the added value of convenient Internet banking with top savings rates and great customer service.''
When opening Telebank's high rate, no-fee deposit accounts, such as free Internet checking, members of IAC's employer programs and affinity partners will benefit from added bonus rates and reduced minimum balance requirements.
Telebank is currently five times larger than all other pure-play Internet banks combined. Telebank's rapid growth is indicative of a recent trend in financial services. Online banking continues to penetrate an increasing number of U.S. households, while branch-based transactions continue to decline.
A recent report by Faulkner & Gray predicts that the number of households that bank and pay bills online will triple to more than 15.6 million U.S. households by 2002.
About Telebank
Setting the standard as an innovator in the banking industry, Telebank created a ''branchless banking'' model in 1989, significantly reducing operating costs by replacing brick-and-mortar branches with service through direct delivery channels. All Telebank accounts have paid yields in the top 1 percent nationally since 1989, and Telebank's Money Market accounts pay double the national average.
Telebank is the first Internet bank to be ranked among the top 50 U.S. federally chartered savings banks. Telebank has also received the highest safety rating (green-three stars) from Veribanc Inc., the most widely quoted independent bank rating service.
Telebank customers have a choice of using their preferred service channel, including the Internet, telephone, fax and ATMs. Customers can log on to the Telebank Web site and manage their accounts from the convenience of their home, 24 hours a day, seven days a week.
Telebank's customer service representatives are available by phone for extended hours, offering one-on-one service without the hassles of long lines or traditional ''banker's hours.'' Telebank is the leading and largest Internet bank committed to providing a comprehensive selection of financial services through the Internet.
Telebank is positioned to become part of the first pure-play e-commerce company in the financial services sector -- combining banking and brokerage services -- through a definitive merger agreement with E-TRADE, a global leader in online investing.
Telebank is a wholly-owned subsidiary of Telebanc Financial Corp. (Nasdaq:TBFC - news), providing high-value financial products and services to customers in all 50 states through low-cost, alternative delivery platforms, including the Internet, telephone and facsimile.
Telebank is the nation's leading and largest branchless bank with nearly 80,000 customer accounts, and more than $1.6 billion in deposits and $3.2 billion in assets. Telebank can be accessed at www.telebank.com or 800/TELEBANK.
About Answer Financial Inc.
Founded in June 1997 by seasoned financial services executives, IAC is the licensed insurance agency subsidiary of Answer Financial Inc., which provides auto, home, life insurance annuity, prepaid legal and home warranty products from more than 80 insurance carriers.
The IAC can be contacted over the Internet or by its toll-free phone service 24 hours a day, seven days a week. Offered exclusively to employers and affinity groups, the service provides extensive and unbiased information, along with side-by-side quotes of competing products.
Insurance companies are selected by AFI based on product, independent third-party rating, customer service quality and technological capability. Insurance companies do not pay to participate in the Insurance Answer Center and the IAC does not accept incentives to advertise or promote a given product or carrier over another.
NOTE TO EDITORS: The company name E-TRADE referred to in this news release contains an asterisk between E and TRADE. This symbol may not appear properly in all systems. |
