Net.B@nk Opens Record 8,000 Accounts First Quarter 1999
Consumers Responding to New Advertising Campaign - Netbanking in Record Numbers
ATLANTA, April 5 /PRNewswire/ -- Net.B@nk(TM), Member FDIC (Nasdaq: NTBK - news; netbank.com), the largest FDIC-insured bank operating solely on the Internet, announced today that it opened a record 8,000 new accounts during the company's first quarter this year, which ended March 31, 1999. Officials at the bank credit this growth to their new advertising campaign, which highlights the bank's outstanding deposit rates, free checking and free unlimited online bill payment services.
''Our goal was to sign accounts at a rate of 2,000 per month by the end of 1999,'' said D.R. Grimes, CEO of Net.B@nk. ''We have greatly surpassed this goal thanks in large part to our new advertising campaign, but also because consumers are finding that Net.B@nk is a smart personal finance decision. Our customers earn higher yields on their deposits, and they can avoid paying high monthly fees. It's an unbeatable combination.''
According to Bank Rate Monitor, an industry research company, the national average monthly charge on an interest-bearing checking account is over $9.00. Net.B@nk's NetValue Checking Account is free to its customers and pays an APY of 3.05% while offering free unlimited online bill payment, ATM use and unlimited online account access.
Net.B@nk's uncommon offer to provide free checking to its customers, in addition to convenient online services and higher deposit yields on checking accounts, is attracting a sizable number of core account customers. ''About 66 percent of our total accounts are checking and money market accounts, which tells us that our customers are now using Net.B@nk as their primary full-service financial institution,'' said Grimes. ''We've become very successful in building longer term relationships with our customers because we provide them convenient 24-hour access to our full range of attractive financial services.''
Net.B@nk's total number of accounts has now reached 24,634, almost three times the number of accounts this time last year. ''After recording incredible growth in 1998, there were questions about maintaining that pace, but we've proven that we can sustain high growth levels,'' said Grimes. He attributes the bank's ability to handle such rapid growth to a recent significant upgrade of its banking technology platform and to the Internet-only structure of the bank. ''If a traditional bank were to open more than 3,000 accounts in a month, it would have to open one or two new branches to service those accounts,'' he added. ''Operating solely on the Internet affords us the advantage of tremendous growth without sacrificing customer service.''
Industry research indicates that online banking in the United States should grow to reach over 17 million households by 2002 with the vast majority utilizing Internet-only banking.
Net.B@nk, Inc. (Nasdaq: NTBK - news), is the first profitable Internet-only bank in the country, having achieved profitability in the second, third and fourth quarters of 1998. With almost 25,000 accounts and customers in all 50 United States and 20 foreign countries, Net.B@nk, Member FDIC (http://www.netbank.com), is the largest FDIC-insured bank operating solely on the Internet. In addition to checking and money market accounts and certificates of deposits with exceptional interest rates, Net.B@nk offers its customers the ultimate convenience in banking. Products and services include account access any time, anywhere, free unlimited online bill payment, free unlimited ATM use, VISA® Check Card, VISA® and MasterCard® credit cards, online brokerage services, mortgage lending and business equipment leasing services. For more information on Net.B@nk, its products and services, visit the web site at netbank.com, or call 888-256-6932.
SOURCE: Net.B@nk, Inc.
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