Mike, I didn't see the Yahoo! banner ad, but I live in the NY market and always hear the Telebank ad during drive time on Bloomberg News Radio. I think you have to give Telebank a little poetic license as it is a banner ad, and the idea is to get someone to click it. The radio ad provides more information, basically saying that they are consistently in the top 1% of the market. I don't think you have an arguement for a couple of basis points.
I read the Sunday NY Times a few weeks ago, which had top five national rates on Checking, MMA, and CDs; Both NTBK and TBFC were listed. Neither were constantly number 1. There is a reason why they are not #1.
I had a long conversation with the Legg Mason analyst who covers TBFC. The strategy is NOT to offer the highest rate in the nation. They want to be 4 or 5th nationwide. Why? Because you will avoid the "hot money" to some extent, people who just chase rate. NTBK and TBFC will not make money on transitional customers. They want bonafied relationships.
Even though my money is invested in TBFC stock and not NTBK, I feel you have to give them a little lattitude with the internet service. Most active sites are maxed out, and we are very very early on what will hopefully become a mainstream way to do your banking. Hopefully both TBFC and NTBK will get their act together technologically, and make barrier to entry for their competitors that much stronger.
Join me at the TBFC thread both here and on Yahoo! I feel like the Maytag repairman, it's very lonely!
Happy, Healthy, and Prosperous 1999 to all!
Goolie2@aol.com |
