Security First Network [a CheckFree client] Bank's 6% Interest Checking Offer Yields Unparalleled Customer Response More Than 6,500 Customer Applications in Just Five Weeks
June 9, 1999
ATLANTA, June 8 /PRNewswire/ - Security First Network Bank (SFNB), the World's First Internet Bank(TM), today announced its recent 6% Interest Checking offer has generated more than 6,500 new customer account applications, exceeding company expectations.
Since 6% Interest Checking was announced on April 27, customer growth has been explosive. Interest checking accounts have increased seven-fold in just five weeks, and the application rate remains steady. Interestingly, 80% of new customers initiated their relationship with SFNB over the Internet (www.sfnb.com), even though SFNB offers phone sign-up as an option. Such a high percentage of online registrants reiterates SFNB's ease of use and consumers' growing confidence in online banking.
SFNB's offer remains unmatched by traditional or online banks in the U.S. In fact, analysts' predictions that other Internet banks would counter with similar rates have not been realized. The offer gives customers 6% interest (APY -- Annual Percentage Yield) on SFNB Interest Checking accounts opened with a minimum $100 deposit. Additional benefits include no service charges, no minimum requirement outside the initial deposit and customers do not have to give up existing bank accounts to become a SFNB account holder. The 6% interest rate will be paid on a customer's account balance up to $10,000 and a 2.5% interest rate paid on any balance over $10,000. Existing Interest Checking accounts will revert to a comparatively competitive rate when the offer expires on January 1, 2000.
"The enthusiasm for the 6% rate has been overwhelming," said Eric Hartz, chief operating officer, SFNB. "We are pleased to pass the benefits of our pricing flexibility to our customers, but we are even more pleased to see customers embracing this incredible online resource. Already, we see signs indicating new customers realize SFNB is much more than a chance at a high interest rate offer as they begin bill-pay activities and opening additional accounts."
According to International Data Corp. (IDC), a projected 500% increase in the number of households using online banking by the year 2003 is expected. IDC (www.idc.com) estimates the number of banks offering online banking services will increase from 1,150 in 1998 to 15,845 by 2003.
"The consumer acceptance of this rate signifies a critical shift in the mindset toward online banking," said David Noble, chief executive officer, SFNB. "Consumers have finally been given a financial incentive to try banking on the Internet, and once they experience the benefits, like speed, convenience and superior customer service, they may never return to the traditional institution. In fact, recent online bank acquisitions strongly support SFNB's vision of a seamless accumulation of an individual's entire financial picture and the importance Internet banking will play in the re-invention of financial services."
SFNB recently received its second consecutive No. 1 online bank ranking by Gomez Advisors, a leading independent consumer authority devoted to online financial services (www.gomezadvisors.com), for fourth quarter 1998 and first quarter 1999. SFNB dominated the analysts' list of 55 online banks, followed by other top-tier online banks such as Wells Fargo, Citibank and Bank of America.
About Security First Network Bank
Security First Network Bank, the World's First Internet Bank(TM), invented Internet banking in 1995. SFNB provides a broad range of banking services via the Internet and telephone, including 24-hour a day, 365 days a year customer service and the ability to customize reports and conduct seamless interactions between checking, savings, borrowing and credit card accounts.
Powered by Security First Technologies, Webtone and other system providers, SFNB's online services include unrestricted bill payment to third parties, up-to-the-minute account balances, real-time activity tracking, automatic categorization of expenditures, loan presentation, secure on-line customer care support, and Internet stock portfolio tracking. SFNB also possesses the exclusive ability to offer online bill presentment, payment and categorization of SFNB's VISA credit cards.
Traditional services include interest and non-interest checking, savings accounts, fund transfers, money market accounts, certificates of deposit, and regular and gold VISA credit cards with rewards programs. Additional offerings include overdraft protection and wire transfers, as well as cashier's, traveler's and convenience checks.
Headquartered in Atlanta, SFNB is a member of the Royal Bank Financial Group, one of the oldest financial institutions in North America and Canada's premier global financial services organization.
SOURCE Security First Network Bank
/CONTACT: Vanessa Howren, 404-880-5296, or vanessa_howren@yr.com, or Kelly Jordan, 404-880-5299, or kelly_jordan@yr.com, both of Cohn & Wolfe, for Security First Network Bank/ /Web site: sfnb.com idc.com gomezadvisors.com
[Copyright 1999, PR Newswire]
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