Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : NetBank(NTBK)-formerly Atlanta Internet Bank -- Ignore unavailable to you. Want to Upgrade?

To: Goolie2 who wrote (666)	6/29/1998 12:46:00 PM
From: Toby Zidle	Respond to of 2414

There is a rebuttal of the Gomez analysis posted on the Yahoo board by CaptainNemo 2. Quoting his posting: Here is an article by Gomez "Advisors"; gomezwire.com Here is my reply to the criticism of this e-banking; 1] "Banks can't offer the eye-catching discount needed to jump-start consumer usage. Brokers reduced the cost per trade from $100 to less than $30 when they moved to the Internet. Internet banks don't have a similar discount available. " Wrong. This company has already done it with 4% checking. It is possibly to have a positive cash flow by banking with this company, unlike all the other banks. 2] "The services aren't habit forming...yet. Internet investing is fun and habit-forming. For example: investors turn up on broker Web sites several times a week to check portfolio values, get stock quotes, and do research. Banking customers use the product much less often. A silver lining: Banks could use online bill payment and presentment to radically increase usage and promote habituation. " E-banks don't make money by the number of trades a customer does !!! They make money on the total deposits alone !!! This company is interested in increasing deposits, not increasing website visits !!! [Although a links page could bring in some advertising revenues] This view by Gomez is backward in its thinking. 3] "Checking and ATM access ties banking customers to bricks and mortar. Banks typically limit the ability to make ATM deposits to clients of the host institution. This makes virtual Internet banks significantly less practical than any multi-channel bank. " So far this hasn't been a problem. The brick and mortar banks do get a foreign transaction fee for allowing other users access to their ATM's. So I see no reason why they would BAN that use. Actually, when I first studied this company, I forgot that you could access your account via ATM an the brick and mortar banks. This was why I initially passed up this stock. BUT NO LONGER !!! Three things that this company needs to stress for continued success in new accounts are; 1] ATM access at local brick and mortar banks 2] 4% checking interest 3] FDIC insured !!!!! These three things make this bank a great investment.