The Hi-Tech Investor: Net banking set to get cheaper
Sunday 30 May 1999
In the US, internet-banking customers enjoy cheaper tariffs than those who prefer to use branches. Egg, the direct banking arm of the Prudential, moved some way in that direction last month when it changed its rules so that new savings accounts can only be opened online.
So far, however, the clearing banks appear to have little incentive to cut their charges or improve interest rates for internet customers. This could change later this year with the launch of First-e, an internet banking service. First-e is a "virtual" bank: it has no branches or even call centres. Customers will manage all their banking through the net. In return, First-e plans to reward its customers with the sort of interest rates that most people associate with savings accounts.
First-e is still at the pilot stage, and its managing director, Xavier Azalbert, is wary of making predictions. He admits rates are unlikely to match those at Egg, but they are likely to match or better the best current accounts, such as Citibank, which currently pays up to 3.75 per cent gross.
Whether First-e will succeed depends largely on whether a new bank with no real track record can win customer confidence. So far, internet banking ventures have been either virtual currencies designed only for internet transactions, or simple account- management websites developed by existing banks.
First-e is a real bank and its customers will be relying on it to handle their real money safely and securely. If it does, it will give conventional bankers pause for thought.
First-e: www.first-e.com Stephen Pritchard can be contacted at: Hiemail@example.com
The Washington Post editor helped Bob Woodward and Carl Bernstein bring down President Nixon
Children's bookseller wins The Independent's new author search
Board creates magnetic field to achieve lift
- 1 Salisbury ranked seventh-best city in the world to visit in Lonely Planet’s Best in Travel 2015
- 2 Disney announces new female-led film Moana
- 3 Banksy has not been arrested: Internet duped by fake report claiming artist's identity revealed
- 5 Russell Brand threatened with arrest after filming outside Fox News headquarters
Chicago voter tells Obama 'don't touch my girlfriend' – Obama stays super smooth
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy has not been arrested: Internet duped by fake report claiming artist's identity revealed
Ebola outbreak: Nowhere is safe until virus is contained in Africa, claims the top doctor who beat it in Nigera
Raphael Ravenscroft dead: 'Baker Street' musician who played the most famous saxophone solo for just £27, dies aged 60
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Jose Manuel Barroso warns David Cameron against making 'historic mistake' over immigration reforms
Worst Airports of 2014: Poll names Islamabad airport in Pakistan worst in the world
iJobs Money & Business
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...
£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...