Academic journal article ABA Banking Journal

Reaching the On-Line Investor

Academic journal article ABA Banking Journal

Reaching the On-Line Investor

Article excerpt

Forrester Research estimates that 1.5 million people trade stocks on-line today and that ten million will by 2002. The options for banks trying to reach on-line investors just expanded thanks to two projects involving Reality Online Inc., a subsidiary of Reuters America Inc.

Reality, which had a proprietary trading site used by brokers prior to its acquisition by Reuters in 1995, began last year to establish Internet sites for brokerage firms where consumers could trade.

Of these brokerages, the Quick & Reilly Group, Inc., in Palm Beach, Fla., is the first to resell the technology to banks. Quick & Reilly is also the first broker to offer--through its securities processing subsidiary, U.S. Clearing Corp--internet trading capabilities to banks other than its correspondents, says Julio Gomez, a senior analyst with Cambridge, Mass.-based Forrester.

Just as USCC began making its system generally available in March, Checkfree Corp., announced a remarketing arrangement with Reality whereby Checkfree's on-line banking, bill payment, and tax accounting services could be packaged with Reality's stock-trading, news and research service.

Although Checkfree seems to be aiming for an integrated solution, USCC sees its plug-in trading element appealing to banks that already have Web sites. That's how the USCC spokesman responded when asked might a bank not prefer to get on-line trading from Security First Technologies (slated for this quarter), as part of a whole Web deal. …

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